The problem of imbalanced distribution of imported Nepalese vanaspati has finally been sorted by the consumer affairs, food and public distribution ministry.

The government has decided to put a ban on imports of Nepalese vanaspati into the states of Delhi, West Bengal, Orissa, Bihar, Jharkand and the north-east till March 5, 2003. It has also decided to work out the modalities for direct import of the commodity by the state-run Central Warehousing Corporation.

In a meeting held on Tuesday and attended by the food and commerce ministries, the vanaspati industry apprised the government of the problems faced by the sector due to imports of the commodity from Nepal. They said that the Nepalese product was harming the domestic industry which was in the verge of closure.

As against an allocated quota of 100,000 tonnes under the Indo-Nepal Bilateral Trade Treaty, India has already imported 152,000 tonnes of Nepalese vanaspati. While 100,000 tonnes have been smuggled, only 52,000 tonnes of vanaspati has reached India through legal routes, the industry says.

Sources said, "The ban on imports in these states was needed since these states were importing higher vanaspati than required to meet their consumption." The entire problem had been caused by indiscriminate issuance of no objection certificates by the CWC to importers in these states.

According to the estimates of the directorate of vegetable oils and vanaspati, average annual production of vanaspati in Bihar, Orissa, West Bengal and Assam is 2,633 tonnes, 597 tonnes and 5332 tonnes respectively. Of the four, Assam does not produce the commodity and meets its requirement from West Bengal.

The consumption of the commodity is almost similar to the listed production. Therefore, the distribution should have been 2,700 tonnes for Bihar, 500 tonnes for Orissa and 5,300 tonnes for West Bengal and Assam as against the present distribution of 562 tonnes, 2214 tonnes and 6147 tonnes respectively.

The sources added that the treaty was up for renewal on March 5, 2003. The government would then look into the necessity of removing the ban for imports into these states. Added to this, the government has also given into the long pending demand from the industry of asking CWC to directly import.

"The food ministry has agreed to this proposal, however, the modalities will only be worked out by the next fiscal," the sources added.