Darjeeling tea and edible oil industries mainly concerned about zero-tariff imports from Nepal
Under the South Asia Free Trade Area (SAFTA) agreement, zero-tariff imports from Nepal have become a major concern for the Darjeeling tea and edible oil industries. The Darjeeling tea industry, which is a major victim, as cheaper Nepali tea enters, has
Under the South Asia Free Trade Area (SAFTA) agreement, zero-tariff imports from Nepal have become a major concern for the Darjeeling tea and edible oil industries. The Darjeeling tea industry, which is a major victim, as cheaper Nepali tea enters, has decided to take up the issue with the West Bengal government once the lockdown in the state is lifted. It wants the state government to control the sale of Nepali tea, as these teas do not meet quality parameters.
On the other hand, the edible oil industry is asking the central government to import soybean oil from Nepal through public sector agencies and distribute these oils to socially disadvantaged groups.
“Zero-tariff imports of Nepali tea under SAFTA cannot be stopped. Kaushik · Basu, secretary general of the Darjeeling Tea Association, told ET, “More stringent checks by the government are needed so that cheap, low-quality Nepali tea does not reach consumers under the name of Darjeeling tea. “Once the lockdown is lifted and retail stores start reopening, we will take up the matter with the West Bengal government. We have also asked the Food Safety and Standards Authority of India (FSSAI) to strengthen quality checks on imported Nepali tea. ”
Last year, the Tea Board of India issued directions to all registered tea buyers and licensed dealers requiring them to obtain permission from FSSAI before tea sales are allowed in the Indian market. This decision was made after tea from neighboring countries such as Nepal was sold as “Darjeeling tea” for domestic consumption. Darjeeling tea estates produce 8 million kg of tea annually.
While cheap tea from Nepal troubles the Darjeeling tea industry, imports of refined soybean oil from Nepal have become a major concern for the refining industry in northern and eastern India.
The Solvent Extractors' Association of India (SEA) alleges that Nepal has no soybean production and very little capacity to crush imported soybeans. The company says that soybean oil from Nepal comes from South America and is gaining duty-free access to India by defying rules of origin.
According to SEA statistics, Nepal imported 350,000 metric tons of crude oil from July 2020 to April 2021 and exported 215,000 tons of finished soybean oil.
“Although Nepal's Ministry of Industry and Supply and the Federation of Nepalese Chambers of Commerce and Industry have clarified through the media that certificates of origin issued for exporting finished soybean oil to India meet the 20% value addition required under the India-Nepal treaty, we still ask the government to import edible oil from Nepal through government agencies such as NAFED and distribute the oil to socially disadvantaged groups through the public distribution system, which will also protect the refining industry in eastern and northern India. ”.