Nafed, Lanka to discuss vanaspati import

Nafed (National Agricultural Marketing Federation of India) has invited Sri Lankan traders to discuss the modalities of vanaspati import canalisation.

"The meeting would be held tomorrow and we hope to come up with the finer details of the entire canalisation process," said Kailash Jyani, additional managing director of Nafed.

On June 2 the ministry of trade and commerce had said the import of vanaspati including bakery shortening and margarine under the 1998 Indo-Sri Lanka FTA (free trade agreement) should be done only by Nafed.

The move has been welcomed by edible oil industry organisations, as it would ensure uniform and equitable distribution of imported vanaspati.

As per the FTA, Sri Lanka can export duty free vanaspati to the tune of 2 lakh tonne to India, which accounts for about 20 per cent share in the 10-lakh tonne Indian vanaspati market.

The absence of a regular canalising agency has been detrimental to the domestic vanaspati industry. There was no mechanism to ensure the proportionate distribution of imported vanaspati.

India also imports 1 lakh tonne duty-free vanaspati from Nepal and in 2003 the State Trading Corporation (STC) was made the sole canalising agency for these imports from Nepal.