Lankan import onus falls on Nafed

In line with the government's decision to route imports of Sri Lankan vanaspati through National Agricultural Co-operative Marketing Federation of India (Nafed), the latter has invited offers for imports of vanaspati, bakery shortening and margarine under its brand name from Sri Lanka.

The invitation has specified the quantity of 25,000 tonne for vanaspati, 2,500 tonne for bakery shortening and 500 tonne for margarine. The offer was made on Monday and the Sri Lankan traders would have to submit their offers by June 30.

The packaging for vanaspati has to be in the sizes of 5-litre and 15-litre jars, half-litre and one-litre pouches and for other items it needs to be in the sizes available.

The shipment period would be July-August and the ports of delivery would be Mumbai, Chennai, Kandla, Tughlakabad (New Delhi) and Ludhiana.

As per the 1998 FTA with India and the self-imposed quota, Sri Lanka can export duty-free vanaspati to the tune of 2.5 lakh tonne to India.

However, there was no mechanism to check the quantity being exported. While total quantity of the vanaspati that came from Sri Lanka in the last vanaspati year (November-October 2004-05) stood at 1.8 lakh tonne, the quota, this year, has already been exhausted.

Nafed Managing Director Alok Ranjan said there was two motives behind the canalisation: Firstly, it would control and regulate the amount of imported vanaspati and, secondly, interests of the domestic vanaspati industry would be safeguarded.

The canalisation would also ensure the quality of imported vanaspati as the exporter would have to get it inspected by an independent agency of international repute and then the consignment would be accepted only after it gets a clearance from the port health officer.

In addition, the quality should conform to Prevention of Food Adulteration Act parameters laid down by the Indian government.

Nafed intends to market the imported vanaspati through its various branches in the northern, western, eastern and southern regions. This would ensure uniform geographical distribution of the products, said Ranjan.

Nafed would also sell one-litre pouches through its outlets in Krishi Bhavan, Nafed bazar, and also through Mother Dairy outlets.

It is also working out modalities with state civil supply corporations and Army purchase organisations for the supply of imported vanaspati to them.

Nafed also signed an MOU with State Bank of India today to provide financial assistance to the farmers for the production of various seeds and crops, which would be procured by the federation.