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Kolkata , Nov. 25

Twelve vanaspati manufacturing units in the eastern region on Tuesday announced indefinite closure of their units in protest against, what they called, "unviable business condition arising from cheap imports from Nepal."

The East Zone chapter of the Vanaspati Manufacturers' Association (VMA), which represents the interest of the units in West Bengal, Bihar, Orissa and Jharkhand, said imports from Nepal under the bilateral trade treaty/free trade agreement had outpriced the local products.

Mr Kunal Banerjee, Chairman, VMA (EZ), said repeated representation made to the Union and State Governments of the region in the recent past "went unnoticed".

Describing the effects of the Indo-Nepal treaty against local industry, Mr Banerjee said while the local units had to bear the burden of 65 per cent import duty on crude palm oil— the basic raw material for vanaspati manufacturing— Nepal vanaspati manufacturers enjoyed duty free import of raw material.

Import of vanaspati from Nepal is duty free under the treaty.

The local industry also loses out in terms of comparative cost because of mandatory use of indigenous edible oils in making vanaspati. The net effect of all these, result in a price difference of Rs 10 per kg of vanaspati against the local products.

The manufacturers have demanded some immediate steps to remove the anomaly. Among the demands are: Import of vanaspati through State Trading Corporation to limit unfair competition and distribution to different States in relation to their consumption; and review of bilateral treaty.

Import of vanaspati from Nepal through STC should also be staggered, VMA said. Violation of distribution figures, specified by the Directorate of Vanaspati Vegitable Oil and Fats for respective States, should be stopped, it said. Monitoring of the standard of imported vanspati should also be established to stamp out substandard items, the organisation demanded.

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