Nepal's 'infiltration' into India's edible oil market has created unhealthy competition!

- Unusual imports from Nepal as well as Bangladesh upset the market balance

The country's oil and oilseeds market has recently seen rapid changes in equations. Prices of various edible oils have risen sharply in April and May and then declined again at the same rate as in the previous period. Meanwhile, according to reports from Delhi, the Center was keeping a close eye on the rise in edible oil prices and has sought suggestions from various organizations and representatives involved in the oil market on how to control prices. However, while the government was receiving these suggestions, the sharp fall in the price of edible oils was also seen as a reaction, leading to a situation similar to Weight and Watch, market insiders said. Meanwhile, just as incidents of cross-border infiltration from neighboring countries have come to light in the country, the country's edible oil markets have also recently seen a picture of infiltration in the form of goods from various neighboring countries, market sources said. It is learned that various oil market organizations have made representations on the issue at a high level in Delhi to draw the attention of the government. According to recent reports from Tamil Nadu, Nepal's sunflower oil has reached markets as far as Erode. Such unreasonable import of sunflower oil from Nepal has created unfair and unhealthy competition in the domestic market. A representative of the oil market, which has a refinery in Chennai with a daily capacity of 300 tonnes per day for more than three decades, has drawn attention to the problem and the issue has caused a stir in the oil market. The refining industry in the country is being hit hard by this. Under the SAARC Asia Free Trade Agreement, sunflower oil and soybean oil are being imported to India on a duty-free basis. However, this question is based on the Rules of Origin and 50% Value Addition v. Despite the need to follow such conditions, as discussed in the market, neighboring countries and especially Nepal, Bangladesh v. Exporters of countries that export such foodgrains to India under such duty-free agreements do not comply with such conditions properly and there are allegations in the markets that such imports are being piled up in the country in the face of such conditions. The Rules of Origin take into account whether the goods from the country from which such goods are imported are manufactured in that country and also whether the goods are exported to India on duty-free basis by the exporters with 50% value addition. That condition is also taken into account. Nepalese authorities, however, claim that these conditions are being met, but domestic experts are expressing the opposite opinion. In Nepal, if these edible oils are not produced, Nepalese exporters have to comply with the condition of 50 per cent value addition, but there are differences of opinion among various sections as to how much this rule is complied with.

Meanwhile, many South Indian traders have been seen buying such goods from Nepal, replacing them with stickers and selling them at cheaper prices in the market. Such finished goods (edible oils) coming from Nepal are very cheap as they come on duty-free basis and this has led to unhealthy competition in the market. Genuine traders and producers of the market have been stunned as such goods are being offered at prices as low as Rs 3,000 per tonne than the prevailing prices in Chennai markets. Loose, Pouch, Packing, Tin Packing Vs. Such edible oils in various forms have been widely offered in the Nepalese market. Such goods from Nepal and Bangladesh cost the government about Rs 1,100 crore to Rs 1,200 crore annually, while the country's honest traders, manufacturers and refineries are being hit hard, according to sources in the Solvent Extractors Association. Nepal, Bangladesh Vs. Such imports are coming to the country by road. In fact palm oil, soyoil, v. Oil is not produced in Nepal. Importers of such edible oils from Nepal to Malaysia, Indonesia, Brazil, Argentina etc. Given that there are importers in Nepal from India, there is a demand to stop the import of such edible oils which are imported to India from Nepal without duty. In the case of imports from the usual conventional route in India, the country's importers have to pay an import duty of Rs 5 per kg on crude palm oil while import of crude soybean oil has to pay an import duty of Rs 21 per kg. On the other hand, the arrival of finished goods from Nepal in the country without duty has led to a breakdown in the country's markets. Who turns a blind eye to such unnecessary and unreasonable imports when the government is chanting the mantra of self-reliance at home? Such a question has been asked in the market.