By A Staff Report
Kathmandu, July 3: The import restriction on refined palm oil imposed by India has been lifted. India's Directorate General of Foreign Trade said in a statement on Wednesday that the ban on refined palm oil had been lifted until December 31, this year. India has also reduced customs duties on palm oil imports by 10 per cent.
However, as per the statement, import will not be permitted through any port in Kerala.
India had banned the import of refined palm oil a year ago. Before India's ban, palm oil was the largest export item of Nepal.
However, exports of palm oil have been declining sharply since the imposition of the restriction.
India had even banned exports from Nepal citing low quality in processed palm oil. The government of Nepal had been constantly urging and requesting India to lift the export ban, but to no avail.
Thankfully, with the resumption the export of palm oil, Nepal can yet again look to reap benefits from palm oil exports.
Joint Spokesperson of the Ministry of Industry, Commerce and Supplies Urmila KC said that India’s move to open the import of palm oil for a six-month period is positive news for Nepal’s economy. “Having said that, traders will be facing quite a challenge to import crude palm oil in large quantities for export with value addition since the ban is only relaxed for a short period of time.
Nepal does not produce palm oil. Nepal imports it from the third countries and exports it to India. That is why in the past, palm oil was Number One on Nepal's export list.
India had stopped importing oil in mid-July last year. This affected Nepal's annual exports of over Rs. 25 billion.
According to traders, around 19 industries have been engaged in palm oil trade in the country.
The investment in these industries stands at Rs. 10 billion and around 10,000 people have been employed in them.