Edible oil export to India faces obstacle

[Homo Sapiens]

http://m.thedailynewnation.com/news/191249/edible-oil-export-to-india-faces-obstacal

Edible oil export to India faces obstacle
Consignments halted by West Bengal customs for over a week
Saturday, October 6, 2018

Kazi Zahidul Hasan :

Bangladesh's merchandise export to India continues to face a range of non-tariff barriers (NTBs) despite the latter's repeated assurance to ease these bottlenecks.
In the latest edition of NTB measure, the Indian Directorate of Revenue Intelligence (DRI) has halted Bangladeshi consignments of edible oil in the West Bengal's different land customs stations (LCS), creating fresh mistrust among local traders.
These consignments originated from Bangladesh's gigantic edible oil refiners-- Meghna and City Group of Industries, insiders said.
India earlier slapped an anti-dumping duty ranging from $19 to $352 per ton on jute yarn/twine, hessian fabric and jute sacking bags brought from Bangladesh and it led to a drastic fall of jute and jute goods export to India.
Unnerved by the fresh trade barrier, local exporters urged the authorities to take immediate steps to resolve the trade barrier in the course of meaningful negotiation in diplomatic channels.
They earlier claimed that they face various non-tariff barriers such as delays, bureaucratic red-tape, customs harassment and visa problems while trading with India, which increases the business cost and hampers smooth bilateral trade relations.
"Our edible oil shipments have been halted for more than a week at several LCS in West Bengal forcing us to count huge demurrage.

The West Bengal Customs Department came up with the measure following a DRI order," Mostafa Kamal, Chairman and Managing Director of Meghna Group of Industries, told The New Nation on Friday.
Frustrated by the DRI's move, Mostafa Kamal said that India earlier imposed anti-dumping duties on Bangladesh's jute products and thus seriously affected jute industries. Now they imposed fresh barriers on edible oil export when local refiners eyed for Northeast Indian markets taking advantage of duty-free market access facility.
"Edible oil export to India has been made duty-free under SAFTA agreement. So, any restriction while taking the product into the Indian market is a violation SAFTA rule," he said.
India is the second largest trade partner for Bangladesh after China and the two-way trade between the two countries touched US$ 9.49 billion in the fiscal year 2017-18 with trade balance (US$7.7 billion) is heavily tilted towards India.
Mostafa Kamal said when the situation prevails in bilateral trade; India imposes fresh NTB on a non-traditional Bangladeshi export item that has little exposure in Indian market. Such an initiative will definitely harm Bangladesh-India trade relations.
In a letter on September 25, the DRI has directed Kolkata Commissioner of Customs (Preventive) not to release edible oil consignments originated from Bangladesh, citing Bangladeshi exporters sent them breaching SAFTA rules and it is thereby inviting huge revenue losses for India.
It also asked the Kolkata customs authorities not to allow the Bangladeshi consignments enter into Indian territory prior to issuance of no objection certificate by DRI.
"DRI has raised the SAFTA rules while blocking the consignments. Their objection is irrational and non-informative," said Mostafa Kamal, claiming, "Local refiners made the shipments in compliance with value addition rules as stated in SAFTA."
Replying to a question, he said, "We have already informed the matter to Indian embassy through official channel. We're waiting for their action to release the stalled consignments."
Indian annual consumption of edible oil is about 22-25 million tons and 60 per cent of the consumption is met from import.
When asked, a senior commerce ministry official said that Dhaka has already communicated with Delhi through diplomatic channel and the issue is expected to resolve soon.
The official also said that Bangladesh and India are maintaining an excellent bilateral relations and efforts are being made to take to a new height.
"Bangladesh has raised the issue of non-tariff barriers in the last week's commerce ministry level meeting. Delhi assured Dhaka of resolving the existing trade barriers," he added.

 

[Homo Sapiens]

Doing business with Chanakya is not easy. This is the problem not only limited to export of edible oil. Benya has imposed a lot of other unjustified and unilateral obstacle violating the trade rules to prevent our export in their markets as well.

 

[gangarambihari]

Doing business with Chanakya is not easy. This is the problem not only limited to export of edible oil. Benya has imposed a lot of other unjustified and unilateral obstacle violating the trade rules to prevent our export in their markets as well.

technical issues are there brother .

 

[Bilal9]

technical issues are there brother .

I am interested in knowing about the 'technical issues'...do elaborate.

The exporters (I know some of them) tell a different story...

If Indian vegetable oil producers operate with fifty year old equipment, and as a result cannot compete, why should they keep cheating the Indian consumer and Indian govt. keep providing fillip to them? This can be extrapolated to almost all products.

Local Indian manufacturers have tremendous advantage of having a huge market and it cannot be helped if they aren't taking advantage of it, rather sitting on their lazy butts.

Smuggling can be done - if the Indian govt. prefers. That way there will be ZERO tariff. Indian border guards can be oiled too (pun intended).

 

[gangarambihari]

I am interested in knowing about the 'technical issues'...do elaborate.

The exporters (I know some of them) tell a different story...

If Indian vegetable oil producers operate with fifty year old equipment, and as a result cannot compete, why should they keep cheating the Indian consumer and Indian govt. keep providing fillip to them? This can be extrapolated to almost all products.

Local Indian manufacturers have tremendous advantage of having a huge market and it cannot be helped if they aren't taking advantage of it, rather sitting on their lazy butts.

Smuggling can be done - if the Indian govt. prefers. That way there will be ZERO tariff. Indian border guards can be oiled too (pun intended).

technical means quality and standards . i am unaware of specifications but i have read some where bangla oil has less standard tests and quality control .

 

[gslv mk3]

If Indian vegetable oil producers operate with fifty year old equipment, and as a result cannot compete, why should they keep cheating the Indian consumer and Indian govt. keep providing fillip to them? This can be extrapolated to almost all products.

@Nilgiri Billu having delusions about 'BD stronk' again

I don't know much about the of edible oil market here, but how exactly did you came to the conclusion that Indian edible oil industry use 50 year old equipment ?

Last time I checked, Indian edible oil producers have 'deeper pockets' than any conglomerate in BD- yes, I am talking about the likes of Adani Wilmar.

Do your manufactures use second-hand imported equipment as is the norm with your largest industry, RMG?

'Can be extrapolated to almost all products', says someone from a country where the only major industry is garments.

Can't stop laughing.

 

[Bilal9]

technical means quality and standards . i am unaware of specifications but i have read some where bangla oil has less standard tests and quality control .

Bihari bhai - thanks for the amusement...

Bangladeshi oil is universally known for having better standards compared to Indian vegetable oil refining standards.

The refining plants are brand new (mostly less than five years old) and pass their own rigid toxicity/residue tests and that of Bangladesh standards and testing institution (BSTI).

Vegetable oil toxins in local market are under severe scrutiny by consumers, much more rigid than in Indian market.

These are simply market protection dhokeybajee by local vegetable oil producers in India.

Ultimately Indian consumer will choose - they will be the winner when they get a better product at lesser cost.

Oil does not have separate Bangladeshi or Muslim flavor in it, it is pure and unadulterated product.

 

[gslv mk3]

Bangladeshi oil is universally known for having better standards compared to Indian vegetable oil refining standards.

The refining plants are brand new (mostly less than five years old) and pass their own rigid toxicity/residue tests and that of Bangladesh standards and testing institution (BSTI).

Vegetable oil toxins in local market are under severe scrutiny by consumers, much more rigid than in Indian market.

''Universally known for better standards''

''subjected to rigid tests''.

Empty rhetoric & grandiose claims are so typical of you.

Anyway in that case, you must have export success elsewhere barring India.

So how much edible oil do you export ?

 

[Bilal9]

Meghna's vegetable oil refining plants use latest technology from LIPICO in Singapore.

Super Fresh Soyabean Oil is enriched with right nutritional values. Because it is produced from:
World’s finest Soyabean Seeds & Crude Degummed Soyabean Oil.

It follows 3 steps of refining process-Perfect Degumming & Neutralization, Balanced De-colorization and Five steps Deodorization to ensure right ratio of Omega 3 & 6 and intact Beta-carotene in Soyabean Oil.

Enriched with Omega 3 &6 which helps to lower "High Blood Pressure".

It helps to prevent cardiovascular disease and minimizes risk of blockage in blood vessels.

It maintains strong quality control in each step of purification process and marketed in own manufactured food graded PET bottle approved by FDA, USA for food packaging.

At a Glance
Brand: Super Fresh Soyabean Oil, Super Pure Vegetable Oil
Plant Capacity: 3,60,000 MT per year
Technology Used: LIPICO
Manpower: 550

Sources of Raw Materials: Argentina, Brazil, Canada, USA, Malaysia and Indonesia
Variant: Soyabean Oil, Vegetable Oil, Canola Oil & Vanaspati
SKU: 8 Ltr, 5 Ltr, 3 Ltr, 2 Ltr, 1 Ltr, 500 & 250 ml and 204 Ltrs for Bulk
Milestone: Achieved 3rd position among all local brands across all categories in "Best Brand Award Bangladesh-2013"
Customers: More than 5.0 Million Consumers including household users, Bangladesh Army, Bangladesh Police, Border Guard of Bangladesh, TCB, Apollo Hospital, Square Hospital, Westin Hotel, Radisson Hotel etc.
Brand Promise: Uncompromising Quality for the "Joy of Giving"

 

[gslv mk3]

Reality check for saner Bangladeshis...

$844 million worth palm oil imported.

$300K worth palm oil export.

$573 million worth Soybean oil imported.

No data for any Soybean oil export.

https://atlas.media.mit.edu/en/profile/country/bgd/

So why don't anyone buy edible oil from Bangladesh, despite it's 'internationally known quality' ?

 

[INDIAISM]

Bihari bhai - thanks for the amusement...

Bangladeshi oil is universally known for having better standards compared to Indian vegetable oil refining standards.

The refining plants are brand new (mostly less than five years old) and pass their own rigid toxicity/residue tests and that of Bangladesh standards and testing institution (BSTI).

Vegetable oil toxins in local market are under severe scrutiny by consumers, much more rigid than in Indian market.

These are simply market protection dhokeybajee by local vegetable oil producers in India.

Ultimately Indian consumer will choose - they will be the winner when they get a better product at lesser cost.

Oil does not have separate Bangladeshi or Muslim flavor in it, it is pure and unadulterated product.

http://www.newagebd.net/article/27831/most-of-edible-oils-not-up-to-standard

Most of edible oils not up to standard
Manzur H Maswood | Published: 01:20, Nov 07,2017 | Updated: 16:41, Nov 07,2017




Most of the soybean oils, mustard oil and ghee sold to consumers lack standard characteristics of cooking oils.
A recent study by the government found that standard edible oil properties like moisture content, iodine, saponification and free fatty acid were largely missing from the cooking oils sold in the country.
Consumer rights activists called it quite unacceptable that no punitive action was ever taken against companies marketing substandard essential cooking oils even after government studies found gross irregularities in the area of serious public health concern.
They said neither the consumers nor the retailers are aware about the values that ought to be there in cooking oils sold in the market.
They said that the Bangladesh Standards and Testing Institute earned the reputation of neglecting its mandated regulatory responsibilities.
They called it astonishing that even the Bangladesh Food Safety Authority, heading inter-ministerial and inter-departmental food safety enforcement programme, also keeps its eyes shut to gross irregularities in the area of vital importance.
The Institute of Public Health, during a study done between July 2016 and June 2017, found that only three per cent of soybean oils, both branded and otherwise, sold to consumers meet the standards.
It also found that ghee and mustard oil invariably failed to meet the standards.
The study reports released on Saturday says that the shocking findings resulted from testing 96 samples of cooking oils.
On chemical analysis all the branded and unpacked samples of mustard oil, soybean oil and ghee were found to be lacking the standard characteristics of cooking oil.
IPH found unacceptable level of moisture content and free fatty acid in mustard oils sold in the kitchen markets.
It also found unacceptable levels of moisture content in branded and non-branded soybean oils but saponification value was lower than the set standards.
In ghee, moisture and free fatty acid contents were above the acceptable levels while saponification value was below the standard level.
The study found vitamin A in nine brands of soybean oil but only three of the brands were permitted value compliant.
Shahnila Ferdousi, head of the National Food Safety Laboratory of IPH, who led the study, said without divulging the brands that the samples would be sent to the BSTI for action.
BSTI spokesperson Taher Jamil admitted to New Age that the cooking oil market was under regular surveillance but the efforts were proving ineffective.
He said BSTI fines and jails unscrupulous sellers to check marketing of substandard products.
Consumers Association Bangladesh president Ghulam Rahman told New Age that the marketing companies were cheating consumers taking advantage of their ignorance about the properties needed in cooking oils
He said that the irregularities continue to failure of the authorities to punish the corrupt companies and persons.
When asked, Bangladesh Food Safety Authority chairman Mahfuzul
Hoque acknowledged
that substandard products were being sold in the country.
He also admitted that the Food Safety Act 2013 could not be enforced as BFSA, created in 2015, lacked the needed manpower and the laboratories.
Ghulam Rahman demanded punishment to the errant companies, otherwise their names should be disclosed by the IPH.

 

[Nilgiri]

@Nilgiri Billu having delusions about 'BD stronk' again

I don't know much about the of edible oil market here, but how exactly did you came to the conclusion that Indian edible oil industry use 50 year old equipment ?

Last time I checked, Indian edible oil producers have 'deeper pockets' than any conglomerate in BD- yes, I am talking about the likes of Adani Wilmar.

Do your manufactures use second-hand imported equipment as is the norm with your largest industry, RMG?

'Can be extrapolated to almost all products', says someone from a country where the only major industry is garments.

Can't stop laughing.

Its fine, reality bears out as usual.

In some other thread recently, there is article of how "Runner" is the sole BD motorcycle manufacturer now (and about 15% market share inside BD).....whatever happened to glorious Walton? ...seems to have vanished like a fart in the wind.

@bluesky @django @Śakra

 

[bluesky]

Its fine, reality bears out as usual.

In some other thread recently, there is article of how "Runner" is the sole BD motorcycle manufacturer now (and about 15% market share inside BD).....whatever happened to glorious Walton? ...seems to have vanished like a fart in the wind.

@bluesky @django @Śakra

The reality is Indian merchants are worried about their own position vis a vis the imported oil from Bangladesh where quality is highly emphasized as if it is a religious ritual. Well, the Indian usual practice is to blame the exporting side. It is not fun for us when the neighboring country pulls our leg to cause our fall. We should say to India, "Nanch Na Jaane to Angan Tera". India just does not know how to compete against our quality.

Wait with your fingers crossed to see how Walton and Runner products overwhelm your market in the near future. But, do not stop them at the border citing low quality.

@Nilgiri, I am happy you are not again banned. Do not please indulge in BD-bashing that causes you to get banned.

 

[Nilgiri]

The reality is Indian merchants are worried about their own position vis a vis the imported oil from Bangladesh where quality is highly emphasized as if it is a religious ritual. Well, the India usual practice is to blame the exporting side. It is not fun for us when the neighboring country pulls our leg to cause our fall. We should say to India, "Nanch Na Jaane to Angan Tera". India just does not know how to compete against our quality.

Wait with your fingers crossed to see how Walton and Runner products overwhelm your market in the near future. But, do not stop them at the border citing low quality.

All I wanted to know is what happened to Walton:

https://defence.pk/pdf/threads/motorbike-sales-zoom-up.580136/#post-10834319

Runner is currently the lone motorbike maker, meeting 14 per cent of domestic demand for motorbikes, said an official of the business group.

Can't overwhelm crap if you producing zilch lol.

Uttara Motors has a 45 per cent market share in the country, he said.

Thats a lot of weak BD effeminates choosing Dada (Bajaj) again. Dayum...please tell them what BSF does to them daily at border! Mush mush!

@dy1022 @TaiShang @Jlaw @rott watch this ("young taliban" as taishang said) China-hater squirm now lol.

 

[django]

Its fine, reality bears out as usual.

In some other thread recently, there is article of how "Runner" is the sole BD motorcycle manufacturer now (and about 15% market share inside BD).....whatever happened to glorious Walton? ...seems to have vanished like a fart in the wind.

@bluesky @django @Śakra

I guess it was a case of "gone in the wind".Kudos bhai