Indian Vegetable Oil Industry Urges Review Of Nepal's Packaging Rules

(MENAFN- KNN India) New Delhi, Jul 26 (KNN) The Solvent Extractors' Association of India (SEA), a major body representing the Indian vegetable oil industry, has urged the Indian government to re-examine Nepal's packaging rules on edible oil imports.

The association claims that the current regulations are affecting Indian exports and violating trade norms.

Nepal has made it mandatory for imported edible oils to be packed in consumer-sized containers of up to five litres. Bulk imports are no longer permitted.

This decision has raised concerns among Indian exporters, especially those dealing in soyabean and sunflower oil, as it hampers large-scale shipments and increases packaging costs.

SEA President Ajay Jhunjhunwala stated that the rule discriminates against Indian exporters and undermines the free trade spirit under the South Asian Free Trade Area (SAFTA) agreement. He highlighted that such measures contradict the principles of fair trade and regional cooperation.

India is a significant exporter of soyabean and sunflower oil to Nepal. Last year, Indian edible oil exports to Nepal were valued at around Rs 3,400 crore. However, since the new rule came into effect, these exports have declined considerably.

SEA has written to India's Ministry of Commerce and Industry, urging officials to raise the matter with their Nepali counterparts.

The association has also recommended exploring trade retaliation options if the issue is not resolved diplomatically.

Industry experts fear that if this packaging restriction continues, it could hurt Indian oil processors, reduce demand, and lead to job losses in the sector.

SEA has called for a balanced solution that respects trade agreements and ensures fair opportunities for exporters.

The vegetable oil industry hopes the Indian government will act swiftly to safeguard national trade interests and restore smooth exports to Nepal.

(KNN Bureau)

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