We hope India will reconsider, says Nepal Finance Minister over import of palm oil

Nepal's Finance Minister Dr Yuba Raj Khatiwada on Saturday expressed hope that India will reconsider its decision regarding a ban on import of refined palm oil.

"We don't know why our neighbouring country banned palm oil. There should be some other politics behind it," the Finance Minister said while speaking to ANI.

"We do hope that the Indian government will reconsider its decision. We are discussing this through our diplomatic channel, if necessary we can also go through the political channel," he said.

The Minister said 25 per cent of Nepal's exports to India is palm oil-related industry, so that would "adversely affect our industry."

 

Recalling that the two countries agreed to reduce trade deficit, the Minister said: We have agreed that we should try to reduce the trade deficit and in that spirit, We hope India will reconsider its decision."

There was no prior indication, so it was like a shock, he said.

He also stressed that Nepal should be the closest destination for investor from India and China.

Commenting on the trade relations between the two countries, he said: "Nepal's major trading partner is India of course. More than two-thirds of our trade is with India. India is one of our largest investment partner and perhaps the market for our products also. In that respect, India accounts a lot to our growth and prosperity."

"Besides, the prosperity of the Indian economy will spillover to the Nepalese economy in terms of market, tourists coming in the country, poverty being reduced, and unwanted migration not taking place. Several other spillover effects we get. So we would like that our neighbour prospers and we also benefit," he added.

Commenting on the issue of demonetized notes, he stated that the issue is being raised with India.

"In coming years, there should not be the kind of problem that has happened in the past," he said while adding that border trade is now smooth.

Referring to the border dispute, he said: "Border issues are longstanding issues. We can politically resolve the issues and we have been solving our border-related disputes by amicable discussions. I don't think that should be an impediment to our deep bilateral relation.