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Two vanaspati bodies resign from COOIT

G. Chandrashekhar

MUMBAI, Oct. 24

SIMMERING differences within the vegetable oil industry and trade over policy recommendations to the Government have now boiled over.

The two important industry bodies have walked away. Upset with the vegetable oil sector's apex body, the New Delhi- based Central Organisation for Oil Industry and Trade (COOIT), two associations representing the country's vanaspati industry interests ha ve resigned in protest. The Vanaspati Manufacturers' Association of India (VMA) and the Indian Vanaspati Producers Association (IVPA), representing the entire vanaspati industry consisting of close to 200 manufacturing units, have withdrawn from the memb ership of the apex body, after being associated with it for long years.

One of the vanaspati associations has alleged that the apex body, dominated by traders, failed to effectively represent the vanaspati industry's interests before the government. While the vanaspati industry has been seeking concessional treatment from th e Government in terms of lower customs duty on raw material to fight sickness and unfair competition from Nepal, the apex body has not been supportive of any such soft treatment.

Both VMA and IVPA have reportedly decided to pursue their case directly with the government. The Central Organisation represents the country's oilseeds-based sector that includes oil mills, refineries, solvent extraction units and a large number of merch ants and trade intermediaries.