Latest news with #SouthAsianFreeTradeArea
The Sun
3 days ago
- Business
- The Sun
India cuts import tax on crude edible oils
NEW DELHI: India has reduced the basic import tax on edible oils by 10 percentage points, a move that is expected to improve domestic retail cooking oil demand. This move reduces the basic duty on crude palm oil (CPO), crude soybean oil and crude sunflower oil to 10 per cent from 20 per cent. The effective import duty, which includes agriculture infrastructure and development cess and social welfare surcharge, on crude edible oils will now be 16.5 per cent compared with 27.5 per cent earlier. The Indian Vegetable Oil Producers' Association (IVPA) welcomed the government's decision to slash the duty on crude edible oil imports while leaving it unchanged for refined oils. 'This move will not just strengthen the domestic refining capacities of Indian refiners but also ensure a fair price to oilseed farmers and a fair price to the consumers,' the trade body's president, Sudhakar Desai, said in a statement. India is the world's biggest importer and second-largest consumer of edible oils. Nepalese refiners have significantly increased their sales to India under the South Asian Free Trade Area (SAFTA) rules since the Indian government raised the basic customs duty on crude edible oils from zero to 20 per cent and from 12.5 per cent to 32.5 per cent on refined products in September last year. Indian oilseed crushers had said the narrow duty differential between the crude and refined varieties was hurting their interests.
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Business Standard
3 days ago
- Business
- Business Standard
India cuts crude edible oil duty to 10% to control prices, aid demand
To tame inflation in oils and fats, India has lowered the basic import tax on crude and refined edible oils by 10 percentage points, a move that is also expected to benefit the local processing industry. The decision is likely to bring down edible oil prices, boost demand, and subsequently increase overseas purchases of palm oil, soyoil and sunflower oil. India has halved the basic customs duty on crude palm oil, crude soyoil and crude sunflower oil to 10 per cent from the earlier 20 per cent, the government said in a notification. This will effectively bring down the total import duty on the three oils to 16.5 per cent from 27.5 per cent, as they are also subject to India's Agriculture Infrastructure and Development Cess and Social Welfare Surcharge. Welcoming the move, Sudhakar Desai, president of the Indian Vegetable Oil Producers' Association (IVPA), said the government's decision to reduce the basic import duty on crude edible oil to 10 per cent while leaving net refined oil duties unchanged at 35.25 per cent would increase the duty differential between crude and refined edible oil to 19.25 per cent. 'It is a significantly bold move towards ensuring Make in India and also protecting the sector from an influx of refined oils causing capacity injury to the vegetable oil sector. This move will not just strengthen the domestic refining capacities of Indian refiners but also ensure a fair price to oilseed farmers and a fair price to consumers,' Desai said. According to IVPA data, imports of refined palm oil surged from 4.58 lakh metric tonnes during June–September 2024 to 8.24 lakh metric tonnes (representing about 30 per cent of total palm oil imports) in the period October 2024–February 2025. Additionally, under the South Asian Free Trade Area (SAFTA) provisions of zero duty, refined oils have been glutting the Indian market due to the huge refined oil duty advantage enjoyed by neighbouring countries.
Indian Express
6 days ago
- Business
- Indian Express
Ludhiana hosiery industry protests against imports from Turkey, Bangladesh
Hosiery and textile industrialists in Punjab's Ludhiana staged a symbolic protest Tuesday morning, urging a boycott of garments imported from Turkey and Bangladesh to highlight their frustration over what they called a growing threat to the domestic industry and a lack of national solidarity from these countries during the recent conflict between India and Pakistan. The protest, held outside the office of the Knitwear Club on Cemetery Road, involved the burning of imported garments. Vinod Thapar, chairman of the Knitwear Club, said the protest was a symbolic act to awaken the public and the government. 'We burnt a few garments to register our anger, not just at the economic threat these imports pose, but also to question the stance of Turkey and Bangladesh, which failed to support India in the recent conflict with Pakistan. Ironically, India had extended humanitarian aid to Turkey during its devastating earthquake in February 2023, but it sided with Pakistan. It's time for Indian citizens to choose local over foreign,' said Thapar. Industrialists pointed out that while the import of garments from Bangladesh is duty-free under the South Asian Free Trade Area (SAFTA), making them cheaper due to lower labour costs, many Turkish brands have also set up units in Bangladesh and are routing their products from there to avoid duties. 'This misuse of trade agreements is damaging Ludhiana's textile ecosystem, where many units are struggling to survive,' said Sarjeevan Jain of the Knitwear and Apparel Manufacturers Association of Ludhiana (KAMAL). Jain added that big Indian retail chains are continuing to stock garments from these countries, ignoring their geopolitical stance, and the damage caused to Indian businesses. Darshan Dawar, president of Knitwear Club, said, 'In India, Turkish and Bangladeshi garments are being proudly sold under their country labels. It's time we make our choice clear — the nation always first. If we continue to promote brands from countries that don't support India, we're compromising on both economic and national interests.' With rising imports from Bangladesh and Turkey, industrialists fear a further decline in demand for local products. After the India-Pakistan conflict, Ludhiana's industry leaders are not just calling for a boycott of products from these two nations, but also urging citizens to refrain from leisure travel to Turkey and to prioritise Indian-made brands in both personal and professional purchases. Ludhiana, often referred to as the 'Manchester of India' for winter wear, has around 12,000 small, medium, and large textile and hosiery units, employing over 5 lakh people directly and indirectly. The city contributes an estimated ₹40,000 crore annually to the domestic market and exports worth around ₹5,000 crore to global markets.
Arab News
08-04-2025
- Business
- Arab News
Following Trump's tariffs, Pakistan is not prepared for the new trade order
President Trump's tariffs regime signals a shift toward economic nationalism. While the merits of this approach are hotly debated, its implications for developing economies like Pakistan, a country reliant on the US market, are undeniable. This move by the US administration, surprisingly underdiscussed within Pakistani policy circles, marks the beginning of a new trade order for which the country's public and private sector is not so well prepared. The knock-on effects, far exceeding mere trade figures, could threaten job losses, eroding export competitiveness and exacerbating Pakistan's already precarious external account. The problem Pakistan faces is multifaceted. It is a country reliant on low value-added exports to the US, a market likely to see inflation, and thus decreased demand. The micro, small and medium (MSME) firms – the backbone of Pakistan's exports, could face reduced orders and potential closure in some cases. Pakistan's lack of diversification, and weak compliance with global standards, leaves it vulnerable. The potential for a foreign exchange shortfall threatens debt servicing and essential imports. Simultaneously, US tariffs, while impacting competitors, present an opportunity for supply chain shifts and market diversification. However, amid this challenge lies potential opportunity. Reduced import costs in the case of some commodities, a consequence of global trade disruption, could alleviate Pakistan's balance-of-payments pressure even though at a limited scale. The search for alternative suppliers by US importers offers a chance to expand exports in sectors where Pakistan holds a comparative advantage. Furthermore, the possible relocation of manufacturing facilities from China and the EU (as a result of trade disruptions) presents an avenue for industrial growth. Pakistan can also advocate for leveraging currently dormant regional trade partnerships, particularly South Asian Free Trade Area (SAFTA), and capitalize on the demand for alternative supply chains. However, for SAARC member countries to rekindle their vision and effectively promote intra-regional trade, India must take the lead. This move by the US administration, surprisingly underdiscussed within Pakistani policy circles, marks the beginning of a new trade order for which the country's public and private sector is not so well prepared. -Dr Vaqar Ahmed To navigate this evolving landscape, Pakistan must adopt a multi-pronged approach. Firstly, it must diversify its export portfolio, focusing on high-growth sectors incentivized through targeted fiscal policies. Secondly, compliance with international standards, particularly in product quality, safety and labor, must be prioritized to access alternative markets. Thirdly, modernizing key industries through automation, AI, and emerging tech is crucial for competitiveness. Fourthly, Pakistan must engage in diplomacy, seeking bilateral tariff relief and offering strategic investment opportunities, particularly in its tech sector. Multilateral institutions, particularly the Multilateral Development Banks (MDBs) and relevant UN agencies, have a vital role to play. They should integrate trade resilience into foreign assistance programs, finance trade-related infrastructure development, and provide technical assistance for labor and environmental standard reforms. Regional partners, including the GCC economies, China, and Turkiye, will need to rethink economic cooperation models with countries like Pakistan — home to the world's fifth-largest population — through not only goods trade, but also increased investment, cooperation in the services sector, preferential market access, and technology transfer. The future of work and the green transition may follow a different trajectory. US tariff policies necessitate a re-evaluation of labor market dynamics, requiring new skill sets and adaptability. The potential slowdown in green technology adoption, currently being discussed in the EU market, calls for a concerted effort to promote sustainable practices and promote international environmental cooperation, even if the US is not proactive in this area. Think tanks in both Pakistan and the US must collaborate to promote balanced research and advocacy, bridging the knowledge gap and promoting a mutually beneficial trade relationship. Pakistan's ability to adapt, diversify, and engage strategically will ultimately determine its resilience in the new era of global trade. Previously, Track 1.5 and Track 2 engagements in the trade and investment space were sponsored by USAID, an agency that no longer exists. As a result, alternative funding sources must be found, possibly through the private sector and its foundations, consumer interest groups, and developing country governments that stand to benefit from a more balanced tariff regime. A key suggestion would be for the Prime Minister's Office to convene a high-level working group of leading international and local trade economists to guide Pakistan's trade trajectory. This group should assess Pakistan's own tariff regime, analyze how trading partners are reacting to US tariffs, and evaluate the implications of ongoing trade and currency wars among major economies. The working group should explore Pakistan's strategic options, including revising the national tariff policy, updating the Strategic Trade Policy Framework, and shaping the forthcoming industrial policy. It should also ensure that sector-specific regulations for various export commodities including agriculture and services are aligned with global trade dynamics to enhance Pakistan's competitiveness in an increasingly uncertain economic environment. Pakistan's private sector will also need to step up. The Overseas Investors Chamber of Commerce and Industry, Pakistan Business Council, and Federation of Pakistan Chambers of Commerce and Industry (FPCCI) should provide in-depth research and insights to guide city-specific and sector-specific business associations, small business chambers, and MSMEs, helping them prepare, adapt, and identify new opportunities in this rapidly changing trade landscape. -Dr. Vaqar Ahmed is an economist and former civil servant.
