Financial Daily from THE HINDU group of publications
Thursday, Jan 24, 2002
Financial Daily from THE HINDU group of publications Thursday, Jan 24, 2002 |
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Agri-Biz & Commodities
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Oilseeds & Edible Oil Industry & Economy - Industry Associations Nepal export tax hike meagre: VMA Our Bureau
NEW DELHI, Jan. 23 THE Vanaspati Manufacturers' Association of India (VMA) has expressed disappointment over the `meagre' increase in the export tax on vanaspati from five per cent to 10 per cent announced by the Government of Nepal. In a statement, the VMA has said the recent doubling of export tax on vanaspati by the Nepal Government was being done ``perhaps with an eye on the impending renewal of the Indo-Nepal Trade Treaty'' and has "hardly helped in narrowing down the gigantic difference in the price of Nepalese and Indian vanaspati, thus keeping the Indian industry exposed to unfair competition from Nepalese vanaspati''. ``Even after taking into account the 10 per cent reduction in import duty on CPO and the five per cent increase in export tax by Nepal, the price difference of Indian and Nepalese vanaspati still stands at about Rs 91 per tin of 15 kg'', VMA claimed. VMA demanded that the treaty, which is to be renewed on March 5, 2002, should be amended to introduce a clause requiring the export tax on Nepalese vanaspati to be kept on par with the customs duty on CPO imported by Indian manufacturers. Further, the Indian industry should be allowed to import CPO at a maximum duty of 25 per cent on actual user condition. Meanwhile, in a separate move, the Indian Vanaspati Producers' Association (IVPA) has filed an application for imposition of a 35 per cent safeguard duty with the Director-General, Directorate of Safeguard Duties in the Ministry of Finance. IVPA has stated that prior to the renewal of the Treaty in 1996, imports of vanaspati from Nepal stood at a mere 10 tonnes per month. In 1997-98, this rose to 37,754 tonnes, before shooting up to 125,000 tonnes in 2000-01 and an estimated 240,000 tonnes this year.
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