India has stopped importing refined palm oil from Nepal. It was country’s top export item. Nepal exported worth of Rs.8.36 billion oil to India this fiscal year.
India’s Directorate General of Foreign Trade issued a notification stating a complete restriction on import of refined bleached deodorised palm oil and refined bleached deodorised palmolein.
According to a report in The Himalayan Times, if the restriction continues, Nepal’s trade deficit, which has already reached an alarming level, will widen further, hitting current account and balance of payments.
The news paper reports that Nepali traders import crude palm oil from Malaysia and Indonesia, process and package it here, before sending it to India. Nepal’s palm oil, on the other hand, was subject to a duty of just six per cent in India.