Mumbai, Dec 3 (PTI) Huge import of soybean oil from Nepal is hurting the domestic refiners and farmers and is causing revenue loss to the government, the Solvent Extractors' Association of India (SEA) said on Thursday.

Goods exported to India by five least developed SAARC countries are fully exempt from customs duty, SEA said adding that taking advantage of this exemption, imports of palm oil and soybean oil have started from Nepal and Bangladesh at zero duty in substantial quantities.

Also Read | Oppo Reno5 & Reno5 Pro Listed on JD.com, Likely to Be Launched on December 10, 2020.

“The excessive import of Refined Soybean Oil and RBD Palmolein at zero duty under the South Asian Free Trade Area (SAFTA) agreement is seriously hurting the domestic refiners, particularly in the eastern and north India and also resulting in huge revenue loss to the government. We request the government to initiate action to regulate the inflow,” it said in its representation to Commerce and Industry Minister Piyush Goyal.

Besides, it is harming the interests of oilseed farmers as it results in distorting the domestic market, it added.

Also Read | Apple iPhone 12 Series Users Report Cellular Connection Issue on 5G & 4G Networks.

Nepal does not produce soybean and has a very small capacity for crushing imported soybean, it also does not produce any palm oil, SEA stated.

The palmolein being imported from Nepal is of Indonesian and Malaysian origin and soybean oil is of South American origin, which is routed through Nepal or Bangladesh by flouting the Rules of Origin for getting the duty exemption for such imports, it alleged.

The apex industry body in the representation said that during July-September, Nepal imported 76,884 tonne of crude soybean oil, out of which 54,392 tonne of refined soybean oil was exported to India.

If this continues, Nepal may export over 2,00,000 tonne during the year 2020-21 (July-June) to India, SEA added.

The current import duty on refined palmolien and soya refined is 45 per cent besides the 10 per cent Swachh Bharat Cess.

At the current import of an average 2,50,000 tonne of soybean oil and palm oil per annum, the country may lose the revenue of excess of over Rs 1,000 crore per year.

SEA urged the government to initiate the action to regulate this inflow from Nepal, fix the quota for import of refined oils from Nepal, channelise the shipment through the government PSUs and strict monitoring of 'Rules of Origin'.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)