There has been a huge increase in imports of refined soybean and palm oil from Nepal, mainly due to duty free import. 1.94 lakh tonnes of oil was imported in the last four months, while 50,000-60,000 tonnes of oil is coming to India every month. During this time India also exported 1.07 lakh tonnes of oil.
Demand for re -interaction on SAFTA agreement
In view of this situation, the Solvent Extractors Association (SEA) has written a letter to the Central Government seeking to reconsider the South Asian Free Trade Zone (SAFTA) agreement. SEA has requested the government to suspend free duty imports of refined oil and new rules should be implemented on Agri Commodity Import.
Why is there a flood of cheap refined oil?
According to SEA Executive Director Dr. BV Mehta, cheaper refined oil from Nepal is coming to India without any import duty. This is being done completely due to zero duty imports under the SAFTA agreement.
Sea demand from SEA government:
- The SAFTA agreement should be regulated.
- Free duty import of refined oil should be banned.
- Oil import limit should be set and the state quota system should be implemented.
Dr. Mehta also said that Nepal is exporting 40-50 thousand tonnes of oil to India every month, causing great losses to domestic refiners and farmers.
Loss of revenue to the government
- Domestic oil refining companies are suffering losses.
- The income of farmers is being affected.
- The government is also losing huge tax revenue.
Decline in cumin prices, what to do investors?
Meanwhile, there is a stir in the Agri Commodity Market. Dinesh Somani of Primation Services said that cumin prices continue to fall.
- Cumin march contract fell below the level of Rs 20,000.
- Investors can purchase within Rs 20,000.
- Can reach a target of Rs 21,450 in 10-15 days.
