Govt suspends 39 licences for import of 4.55 lakh tonne of refined palm oils

NEW DELHI: The government has suspended all 39 licences issued for import of about 4.55

lakh tonne of refined palm oils, a move which industry body SEA on Tuesday hailed saying this will check illegal cheap imports and protect domestic refinery industry.

To check illegal inbound shipments, refined palm oil was put under restrictive list of import on January 8 this year and companies were required to take licence for import from the Directorate General of Foreign Trade (DGFT) under the aegis of the Commerce Ministry.

"DGFT has issued 39

licences to different firms... The Department of Commerce has reviewed its decision and has decided to suspend all these

licences," the DGFT said in an office memorandum dated May 11.

The 39 licences were issued for import of 4,55,301 tonne of refined palm oils and much of the quantity was to be shipped from Nepal which does not even produce palm oils.

Many of the licences were issued to companies located in eastern India, especially West Bengal and Bihar.

Of the total quantity for which licences were issued, about 2.93 lakh tonne of refined palm oils were to be shipped from Nepal and 12,000 tonne from Bangladesh, while 1.5 lakh tonne from Indonesia.

In the official memorandum, the Directorate also said that it is possible that some imports might have taken place against these licences.

"But from now on, no clearance is to be allowed against these licences," it said and added necessary suspension orders are being issued by regional authorities of DGFT.

Lauding the government's decision, Mumbai-based Solvent Extractors Association of India (SEA) Executive Director B V Mehta said Indonesia and Malaysia are major suppliers of palm oils. But the shipments are routed through Nepal and Bangladesh illegally at nil import duty.

"The government has started enquiring if rules of origin of the product were flouted. It is a major revenue loss to the government if imports are allowed through such routes," he said, adding that SEA had made several representations to the Commerce Ministry to check such imports.