Vanaspati from Nepal was exempted from duty up to 1 lakh tonnes per annum and enjoyed unlimited duty exemption on the raw material.
Indian vanaspati was taxed and this had hit eastern India, one of the largest markets for vanaspati in the country.
Manufacturers in the region said the situation had forced them to close plants within the country and shift their plants from India to Nepal to avail of tax benefits under the Indo-Nepal trade treaty.
Kunal Banerjee, chairman of Vanaspati Manufacturers
