Palm oil ban bemuses local industry
View(s):Sri Lanka’s palm oil-based industries including cooking oil producers are on the verge of collapsing as a result of confusion created following the ban on palm oil imports. The ban was enforced as a result of Aflatoxin (toxic substance) detection in recently imported crude coconut oil shipments, representatives in the industry complained. .
The Finance Ministry has issued a gazette notification on April 6 under the signature of Prime Minister Mahinda Rajapaksa introducing a licensing system to safeguard the industry easing the restrictions by allowing the import of palm oil and related items which are not chemically modified subject to special license regulations.
Crude palm oil imports have been banned totally but these regulations are not applicable for BOI companies engaged in the production of cooking oil and palm oil-based products for the export market, official sources said.
These companies are allowed to import palm oil without any restrictions; sources said adding that the companies engaged in producing palm oil based products, bakery fat and vanaspathi ghee for the Indian market are allowed to import crude palm oil without any restrictions.
The lack of clarity in the new regulations and the delay in implementing the license scheme allowing importers to continue palm oil imports has affected refiners, processors, manufacturers, marketers and sellers of palm oil and other products of the oil palm.
Small scale manufacturers for the local and export market have been affected badly as the banks are refusing to open LCs for palm oil importers as the licence scheme is still not in operation, these industrialists complained.
Palm oil is used by Sri Lankans in almost every aspect of life; from toothpaste to shampoo to soap to lipstick to confectionary. (BS)