New vanaspati import norm irks industry

The Indian Vanaspati Producers' Association (IVPA) has opposed the withdrawal of the Sri Lankan vanaspati import canalisation through the National Agricultural Cooperative Marketing Federation (Nafed).

The association has made representations to the Union government in this regard.

After a long wait, the industry was given a partial reprieve following the ministry of commerce's public notice dated June 2, whereby the duty-free imports from Sri Lanka were canalised through Nafed.

"It is a matter of deep regret and total surprise that the breather given to the industry was very short-lived," said the IVPA release. The ministry has once again totally liberalised the Sri Lankan imports by reversing its earlier notification and de-canalising the imports.

"Why the earlier order has been withdrawn is difficult to logically explain, as nothing has changed in the past six months to warrant the same. Perhaps, the pressures from Sri Lanka were too overpowering to withstand," it noted.

The domestic vanaspati industry valuing over Rs 6,000 crore has, for the past 12 to 18 months, been reeling under the impact of duty-free imports from Sri Lanka in addition to the smuggled imports from Nepal.

The only logic thrown in, that an annual ceiling of 2.5 lakh tonne for imports of vanaspati and allied products has been imposed, is to say the least, a very flimsy explanation. Why 2.5 lakh tonne and why not 1 lakh tonne as in the case of Nepal?

This is total injustice for the domestic industry and even tantamount to discrimination towards another neighbouring country and, therefore, needs to be corrected, the release added.