India’s Obstruction Causing Unnecessary Hassles for Nepali Exporters

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India’s Obstruction Causing Unnecessary Hassles for Nepali Exporters

August 25: The Nepal-India Trade Treaty mentions that both countries will promote each other’s products in their respective markets. As per the provision of the treaty, Nepali goods that meets all the required standard set by the government deserves fair treatment in the Indian market.

However, there are lots of instances in which Nepali products get stranded in the border points due to obstruction created by India time and again.

There was a time when such obstruction created by India affected the export of vegetable ghee, copper and zinc from Nepal. Of late, Nepali exporters have been facing myriads of problems in exporting cardamom, tea, ginger, jute, lentil, and broom grass.

Nepali exporters are facing problems not only for exporting the goods that are sold in the Indian market but also in third countries.

Industrialists in Nepal say that a large quantity of refined palm oil has been lying in warehouses due to the ban imposed by India on the product since the last five months. Operator of OCB Foods. Suresh Rungata, says they are forced to store more than 100,000 metric tons of refined palm oil as well as raw materials due to the ban on the product by India.

The investments made by 14 oil industries in Nepal are under risk due to such restriction created by India.

“New industries were set up for exporting oil to India. Most of the industrialists upgraded their capacity. But the investors are worried about that their investment might go in vain,” says Rungata.

The private sector has been complaining that the authorities of Nepal do not prepare well during bilateral talks with India resulting in India’s domination.

The Trade and Transit Treaty of 1996 between Nepal and India allowed export of Nepali goods in the Indian market without any customs duty and obstruction. However, the treaty was amended in 2001, authorizing India to ban goods from India. This provision badly affected the industries that were established for exporting goods to India.

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