Mumbai, Oct. 1 With vegetable oil imports continuing unabated, the Government’s decision to ban import through two ports – Kochi and Beypore – located in Kerala is becoming questionable.
The vegetable oil industry and trade representatives are demanding that the ban be lifted and imports allowed through Kerala ports. It is widely believed that under pressure from the State Government which in turn was pressured by the coconut lobby, the Centre placed an embargo on vegoil imports, especially palm oil, through Kerala ports. The ban has been in effect for nearly two years now.
However, little has changed. Palm oil continues to be imported in other southern ports and is transported to Kerala. Imports through ports such as Mangalore, Chennai and Tuticorin have expanded by over 50 per cent in the last 10 months. In effect, Kerala ports are losing business.
Transportation expense
The trade incurs a wholly avoidable expense on transportation. For instance, imported crude palm oil is unloaded at Mangalore port and is transported to refineries located in Kerala. As everyone knows, palm oil flows freely into the State by road from Karnataka and Tamil Nadu.
“It is a pity, the Government is barking up the wrong tree,” commented an irate trade intermediary who strongly believes that restrictions on entry points do not serve any rational purpose.
Indeed, it would be a mistake if the Government believes that by merely continuing with the embargo on imports through Kerala ports, the interests of local coconut growers would be protected.
There are structural issues of the coconut sector that need to be addressed.
The State Government has been unequal to the task. There has been lip service to coconut growers; but their plight has changed little in recent years.
It is an irony that while the Kerala Government actively seeks entrepreneurs to come and invest in the State to do business, illogical restrictions such as on palm oil import stymie genuine efforts of businessmen.
Source : Business Line