India cancel palm oil imports from Nepal

India suspends imports license of Palm Oil

By Patwal

India has cancelled permission to import over three lakh tonnes of refined palm oil from Nepal and Bangladesh under the South Asian Free Trade Agreement(SAFTA) as both neighbouring countries don't produce commodity.

The government  suspends all 39 licences issued for import of about 4.55 lakh tonne of refined palm oils, a move which industry body SEA on Tuesday hailed saying this will check illegal cheap imports and protect domestic refinery industry.

As per the latest official data given in parliament, India's total bilateral trade with Nepal in FY 2017-18 stands $6.82 billion, but  it is highly slewed in India's favor as India exports goods worth $6.38 billion and impots goods worth $437 millions.

Nepal exports to India increased some extent becuase of palm oil. Mainly the palm oil exports incresed after when India stop exports refined palm oil from Malaysia due to Malaysia behaviour on Kashmir issue.

Palm oil is edible vegetable oil extracted from the fruit of palm oil trees largely grown in Indonesia and Malaysia. It is in great demand globally as it used in many products from doughnuts and chocolate to shampoo, lipstick and toothpaste.

• Since refined Palm Oil imports were restricted in India Nepal enjoyed the exemption. 
• Nepal further enjoyed benefits under the South Asian Free Trade Agreement (SAFTA) 

Why India to do this?

• Nepal Bangladesh traders misuse the SAFTA to reroute palm oil. The Solvent Extractors's Association of India (SEA), the apex body of vegetable oil Trade, has called upon the government to look over the ways of indirect sourcing of palm and soya oil from Nepal and Bangladesh under SAFTA.

• To promote local refineries (Atmanirbhar Bharat) The Road Ahead.
• Generate employment groom economy. And  others countries also following similar pattern

Thanks