ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

VanaspatiSubscribe to Vanaspati

India-Nepal Trade : Loose Ends

The vanaspati industry has once again asked for a ‘level playing field’ vis-a-vis imports from Nepal. According to the industry, the flood of duty-free imports under the India-Nepal trade treaty has eroded the viability of domestic units, forcing hundreds of closures and large job losses. As one option, vanaspati-makers want the commodity to be placed in the negative list of imports under the treaty. Alternatively, the industry wants an origin of goods condition to ensure that the vanaspati is indeed manufactured in Nepal, and contains not less than 55 per cent of Nepalese material. Apart from the hard-hit vanaspati sector, other industries such as plastic products, copper wire and acrylic yarn have also complained of being affected by a sudden surge in imports from Nepal. The trade treaty with Nepal was signed in 1991, modified in December 1996 and is now up for renewal at the end of this year. It is under review by the Indian government which feels that several imbalances need to be ironed out if the treaty is to be beneficial to both sides.

Back to Top