The president of IVPA, Sudhakar Desai, suggested the need to change the entrance port for all edible oils destined for Nepal. | Photo credit: Cueapi
The Indian Vegetable Oil Producers Association (IVPA) has asked the Government to change the entrance port for all edible oils for Nepal.
Recommend measures to stop the import of Nepal Vegetable oils, in a letter to the Minister of the Union for Agriculture and Welfare of farmers, Shivraj Singh Chouhan, the president of IVPA, Sudhakar Desai, suggested the need to change for Alle Nepal. At present, the Haldia port is being widely used as a port designated for all imports of edible oil for Nepal.
He said that this traffic concentration in a single port has led to several operational challenges, including severe congestion and delays in boat bearing; High delay costs incurred by importers due to prolonged waiting time; and limited availability of storage tanks, which affects appropriate discharge and handling. Draft restrictions in the port aggravate even more the efficiency of the response of the ships.
Increased imports a challenge
He said that the port of entry designated for edible oil shipments should be changed from haydia to alternative ports such as Visakhapatnam. This will help decongest Haldia and improve the efficiency of the supply chain for Nepal and National Shipments.
The Indian oilseed seed processing sector faces challenges due to the increase in vegetable oil imports from the countries of the free trade area of southern Asia (SAFTA), partly Nepal. This influx is severely affecting national refineries, oil seed farmers and leading to significant income losses for the government, he said.
Emphasizing the need to impose an agricultural infrastructure of 10-15 percent in agriculture and development CESS (AIDC) in refined oils, hey, such movement would stop excessive imports and improve competitiveness for national refiners. Currently, AIDC is 5 percent in raw edible oils, but 0 % in refined oils.
A quota system (such as the implemented for Nepal Vanaspati imports) would help regulate the volume of refined oil that benefits from tax free access, he said.
Tax -free imports must be channeled through Nafed or Similment cooperatives to regulate the offer, guarantee the stability of prices and retain profits within the domestic market, said Desai in the letter.
Posted on April 15, 2025
