India cancels palm oil imports from Nepal, Bangladesh to curb misuse of free trade agreement

India has cancelled permission to import over three lakh tonnes of refined palm oil from Nepal and Bangladesh under the South Asian Free Trade Agreement (SAFTA) as both neighbouring countries don’t produce the commodity. The issue over these imports is that these countries do not produce these products. Some traders channel their imports through these countries taking advantage of the free trade pact that allows imports, duty-free.