Trade Fiasco

July 25, 2006 (LBO) – India has said that few Sri Lankan vanaspati manufacturers have put in bids to resume exports of the vegetable oil, though both sides have still not agreed to conditions.

India™s National Agricultural and Marketing Federation (NAFED) have received three offers for import of 20,000 metric tonnes of vanaspati from Sri Lanka, according to Indian reports.

Quantities offered also included 2,500 tonnes of bakery shortenings and 500 tonnes of margarine a month, according to reports.

There were three offers submitted by local manufacturers before July 17, but we had three days of meetings following that to ask about quantities, distribution and branding, a spokesperson for the local Vanaspati Manufacturers Association, told LBO.

Local manufacturers say India has not agreed on import quantities and if amounts would be distributed equally among all ten local exporters, or if joint branding would be allowed.

India recently slapped restrictions on Sri Lankan imports of vanaspati oil, allowing only state run agricultural marketing board NAFED to import reduced quantities of the oil under its own brand label.

India also called for shipments earlier t