Edible Oil Traders Use Free-Trade Pact To Get Around India's Import Tax Hike
Edible oil traders are sourcing exports of palm oil and other cooking oils to India from neighbouring countries, designating the supplies as duty-free under a regional free-trade pact and circumventing India's import tax hike on the oils.
India, Bangladesh and Sri Lanka are among the signatories of the South Asian Free Trade Agreement (SAFTA) that created a free-trade zone in the South Asian region.
The rising flow of duty-free edible oils is disrupting trade in India, the world's biggest importer of the oils, and is undermining efforts to raise local oilseed prices, the reason for imposing the taxes.
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