Zero-tariff imports from Nepal become a major concern for Darjeeling tea and edible oil industry

Under the South Asian Free Trade area (SAFTA) agreement, zero-tariff imports from Nepal have become a major concern for the Darjeeling tea and edible oil industry. Darjeeling's tea industry, which is a major victim because of access to cheaper Nepalese tea, has decided to take a problem with the West Bengal government once the blockade in the state is lifted. It wants the national government to control the sale of Nepalese tea because it does not meet the quality parameters.

On the other hand, the edible oil industry requires the central government to import soybean oil into Nepal through public sector institutions and distribute it to socially vulnerable groups.

"the zero-tariff import of Nepalese tea cannot be stopped under the Sudan Free Trade area. Kohik Basu, secretary general of the Darjeeling Tea Association, told ET, "stricter inspection by the government is needed so that cheap and high-quality Nepalese tea does not reach consumers in the name of Darjeeling Tea." once the blockade is lifted and the retail stores reopen, we will deal with the matter with the West Bengal government. We also ask the Indian Food Safety Standards Agency (FSSAI) to strengthen the quality inspection of imported Nepalese tea. "

Last year, the Indian Tea Committee issued instructions to all registered tea buyers and licensed dealers requiring them to obtain permission from the FSSAI before the Indian market allows tea to be sold. The decision was made after tea from neighboring countries such as Nepal was sold as "Darjeeling Tea" for domestic consumption. Darjeeling tea house produces 8 million kilograms of tea every year.

Although cheap tea from Nepal haunts the Darjeeling tea industry, the import of refined soybean oil from Nepal has become a major concern for the oil refining industry in northern and eastern India.

The Indian Association of solvent extractants (SEA) alleges that there is no soybean production in Nepal and that the ability to crush imported soybeans is very small. The company says soybean oil from Nepal comes from South America and is entering India duty-free in defiance of rules of origin.

According to the Oceanic Administration, Nepal imported 350000 metric tons of crude oil and exported 215000 tons of finished soybean oil from July 2020 to April 2021.

"although the Ministry of Industry and supply of Nepal and the Federation of Nepal Chamber of Commerce and Industry clarified through the media, the certificate of origin issued for the export of finished soybean oil to India meets the 20 per cent added value under the India-Nepal treaty, and we still require the government to import cooking oil from Nepal through government agencies such as NAFED and distribute oil to socially vulnerable groups through the public distribution system. This will also protect the oil refining industry in eastern and northern India. " .