The Indian government dealt a major blow to Nepal and Bangladesh, and took drastic steps

Banglahunt Desk: In the midst of this global financial crisis of lockdown, the Indian government has given a big push to Nepal and Bangladesh. India has revoked the import of more than 300,000 tonnes of refined palm oil from these countries. Under the South Asian Free Trade Agreement, Nepal and Bangladesh will not have to pay import duty to sell palm oil to India.

Palm oil import to India revoked

However, under the terms of the South Asian Free Trade Agreement, both countries do not produce palm oil themselves, which is why India has taken drastic measures such as canceling imports. Nepal and Bangladesh do not attract import duties on many items, including palm oil, spices and tires. The problem with imports is that these countries do not produce these things themselves. Some greedy importers and traders try to sell their goods in India through these countries so that they can get exemption from import duty in these countries under free trade agreement.

BV Mehta Reuters Agency statement

Many of the countries involved in the treaty import from other places with very little import duty or no duty. BV Mehta, an Indian businessman, told Reuters: “Imports of palm oil from Nepal and Bangladesh have been violating the source of production for so many years. As a rule, the goods must be produced in the same country from which they are being exported. After all, the central government has taken steps to strengthen such imports. ”

39 licenses approved for import of palm oil canceled

Thirty-nine licenses to import palm oil from these countries have been revoked. Most of these licenses are from importers in West Bengal and Bihar. Most of the imports through these permits were from Nepal. Out of 300,000 tonnes of palm oil, 2.93 lakh tonnes had to be imported from Nepal and 12,000 tonnes from Bangladesh.

Palm oil import duty 44%, refined oil import duty 54%

The central government also wants to discourage the import of refined cooking oil. So that there is an opportunity to increase the capacity of domestic refineries. In January, the government banned palm oil imports. Following this move, DGFT approval was made mandatory for palm oil imports. In February, the government raised import duty on crude palm oil to 44 per cent and refined oil to 54 per cent.

According to analysts

According to the SEA, RDB palm oil imports fell by 60 per cent between November and April. At the same time, imports of crude palm oil and palm kernel oil also declined by 14 per cent. Analysts believe that the decline in refined date oil imports was also due to the breakdown in India-Malaysia relations. India used to import large quantities of refined oil from Malaysia, but Malaysia's position under Article 370 also affected trade.

Import of palm oil from Nepal and Bangladesh canceled

Indian industry has expressed happiness over India's decision to cancel imports of palm oil from Nepal and Bangladesh. The industry says the move was crucial in light of the long-standing violation of free trade agreements