The Indian Vegetable Oil Producers’ Association (IVPA) has urged the government to shift the port of entry for edible oils destined for Nepal, aiming to ease operational bottlenecks and curb unregulated imports affecting India’s domestic industry.
In a letter to Union Agriculture Minister Shivraj Singh Chouhan, IVPA President Sudhakar Desai highlighted that Haldia Port—currently the main entry point for edible oil shipments to Nepal—is facing severe congestion, vessel berthing delays, high demurrage costs, and storage limitations. Draft restrictions are also slowing vessel turnaround times, further straining logistics.
Desai recommended shifting the Nepal-bound shipments to alternative ports such as Visakhapatnam, which would help decongest Haldia and enhance the overall efficiency of the supply chain for both international and domestic consignments.
Beyond logistics, Desai raised concerns about the surge in vegetable oil imports from South Asian Free Trade Area (SAFTA) countries, particularly Nepal. He warned that this is negatively impacting Indian oilseed farmers, domestic refiners, and causing significant revenue losses to the government.
To address the issue, IVPA proposed the imposition of a 10–15% Agriculture Infrastructure and Development Cess (AIDC) on refined edible oils. Currently, AIDC is 5% on crude oils and 0% on refined ones, making imported refined oils more competitive than domestic products.
IVPA also suggested implementing a quota system for refined oil imports, similar to the system already in place for Vanaspati imports from Nepal. Additionally, Desai recommended routing all duty-free edible oil imports through government-affiliated cooperatives such as NAFED, which could help regulate supply, stabilize prices, and retain profits within the domestic economy.
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