Categories: Business

import licence of 39 vegetable oil companies canceled

Photo: GOOGLE

import licence of 39 companies canceled

new Delhi. The Directorate General of Foreign Trade has canceled the import licenses of 39 companies, taking strict action against companies importing vegetable oil against import rules. The companies whose licenses have been canceled were still importing refined palm oil after 8 January against all the rules, while the government on 8 January put refined palm oil imports in the restricted category.

According to information provided by the Oil Oilseeds Industry Organization Solvent Extractors Association, companies whose import licenses were canceled were importing refined palm oil into India via Nepal and Bangladesh. Refined palm oil is produced in Malaysia and Indonesia and India imports palm oil directly from the same countries for its own needs. But because refined palm oil imports were put on the restricted list, some companies were importing it into India via Nepal and Bangladesh.

The advantage of importing through Nepal and Bangladesh is also that under the SAFTA agreement, some goods imported from these countries currently face zero import duty and refined palm oil is also one of those items. But even in Nepal and Bangladesh, that oil reaches Indonesia and Malaysia and under the SAFTA agreement only the concession can be granted for import of goods which are manufactured in the exporting country and not with palm oil.

Some companies had been importing oil through Nepal and Bangladesh by taking advantage of these concessions for many years, due to which there was a 300 percent increase in oil imported through Nepal within 3 years, during 2017-18 of Nepal The way 45667 tonnes of refined palm oil was imported, which has increased to 1.89 lakh tonnes in 2019-20. Similarly, 3698 tonnes of refined palm oil was imported through Bangladesh in 2018-19 which increased to 22151 tonnes in 2019-20. In view of this import going against the rules, the Ministry of Foreign Trade has now canceled the import licenses of all those importing companies.

This post was published on May 12, 2020 1:00 am

Content Team

Recent Posts

wipro q1 consolidated net profit flat at Rs 2390 crore

Photo: WIPRO Wipro q1 result new Delhi. Consolidated Net Profit of information technology company Wipro grew marginally to Rs 2,390.4…

YES Bank garners Rs 4500 Crore from anchor investor

Photo: PTI yes bank new Delhi. Private sector Yes Bank raised Rs 4,500 crore from anchor investors on Tuesday ahead…

Britain bans china's huawei, 5G kit to remove by 2027

Photo: FILE Britain bans china‚Äôs huawei new Delhi. China's Huawei will be completely removed from the UK's 5G network by…