India-Nepal Relations

After Souring Relations Through Border Dispute, Nepal Seeks Access To Indian Palm Oil, Tea Markets

by M R Subramani - May 26, 2020, 3:14 pm
K P Sharma Oli, Prime Minister of Nepal

K P Sharma Oli, Prime Minister of Nepal

Snapshot :
  • While Nepal, on one hand, has objected to India inaugurating a road through Lipu Lekh Pass, which it claims to be its territory, it wants access to India’s markets on the other.

Undeterred over cancellation of licences for import of refined palm oil from its kingdom, Nepal has written to India to allow its traders to export the edible oil besides tea to the Indian market. The plea to the Narendra Modi government comes on the heels of India cancelling licences to import 2.93 lakh tonnes of refined palm oil from Nepal on 11 May this year.

India had cancelled the import permits since Nepal does not produce palm oil and some Indian importers were taking unfair advantage of the South Asian Free Trade Agreement to bring the commodity duty free, flouting the rules of origin.

Under the rules of origin, a product will have to originate from the country of exports. In the case of palm oil, importers get it imported duty-free from Malaysia or Indonesia and then divert it to India as Nepal does not produce the oil. Nepal media myRepublica, quoting Nepal Ministry of Commerce and Supplies, reported that two separate letters have been sent to Indian government agencies concerned through its Ministry of Foreign Affairs.

The Ministry urged that Nepali traders be permitted to export tea and refined palm oil in the Indian market — both top the list of commodities exported from Nepal to India. The development comes amidst souring relations between New Delhi and Kathmandu.

Nepal has objected to India inaugurating a road through the Lipu Lekh Pass, which it claims to be its territory. Besides, Nepal has upped the ante against India in the last couple of weeks.

First, the Nepal Cabinet approved a new map showing some Indian regions such as Kalapani, Limpiyadhura and Lipulekh as its territories.

Second, Nepal Prime Minister K P Oli has blamed India for the spread of the novel Coronavirus in his country and also sparked off a controversy saying the virus traced to India was more ‘lethal’ than the ones traced to China.

Nepal has also pointed out that it imports $7 billion worth of goods from India. Nepal Rastra Bank has said that while Indians repatriate $3 billion every year back home, Nepalese repatriate less than $1 billion. An unnamed Nepal Commerce Ministry official said that India has not responded to Nepal's plea yet.

Quoting Purna Kumar Karki, Jhapa Tea Entrepreneurs Association President, myRepublica said Nepal exported tea worth Rs 63 crore to India last year.
However, it would be wrong on Nepal’s part to interpret the cancellation of palm oil import licences as some sort of vindictive action by New Delhi. Along with Nepal, India has also cancelled licences to import palm oil from Bangladesh.

Indian domestic sectors such as edible oil refiners, spice manufacturers and tyre makers have been badly affected by the misuse of the FTA provisions to import commodities such as palm oil, spices, and tyres duty-free.

Though the free trade pact had been violated for quite some time, India has woken up to the reality of fraudulent imports and begun taking action only now. The Centre is trying to discourage refined palm oil imports as it wants the domestic solvent extractors and refiners to utilise their idling capacity.

India is also acting against tea from Nepal as its imports are affecting prices for the premium Darjeeling tea here. Unchecked flow of Nepal tea led to 20-25 per cent fall in Darjeeling tea prices last year.

India’s concern is more over Nepal tea being shipped and sold as Darjeeling tea, which has patent protection and been given a Geographical Indication tag. A reader of myRepublica pointed out that palm oil from Nepal is sold by traders and the Himalayan kingdom does not benefit from either import or export of the edible oil.

Indications are that Nepal's ruling Communist government is acting at the behest of China and the Oli government could make things tough for itself as Kathmandu depends on India for access to many things, including petroleum products.

 
This for real ? Can anybody confirm this ?

Only constitutional ammendment is put on hold map is not taken back.

It's an administrative mess for them to change the map everywhere. They have to demonetize the notes containing the old maps, change national emblem, change text books and so on, not to mention they have to ask UN, SAARC and other international forums to accept new map which will be next to impossible so they can put one map for domestic audience but when they see international maps it will be old ones.

I think Oli will try to ammend the constitution, good portion of his voters like anti India tone. He is like Imran Khan of Pakistan only more dumber, wont think much before shooting himself in foot.
 
  • Haha
Reactions: Gautam
It's an administrative mess for them to change the map everywhere. They have to demonetize the notes containing the old maps, change national emblem, change text books and so on, not to mention they have to ask UN, SAARC and other international forums to accept new map which will be next to impossible so they can put one map for domestic audience but when they see international maps it will be old ones.
They should also change their name to vassal of china. If there was differences they could have talked it out its not as if the entire area is blocked but only road laid for access. We could have had a joint mechanism or some thing. But now it seems India wont care until next govt comes in.
 
They should also change their name to vassal of china. If there was differences they could have talked it out its not as if the entire area is blocked but only road laid for access. We could have had a joint mechanism or some thing. But now it seems India wont care until next govt comes in.
It's not mistake of Nepal, it's mistake of India. We pamper our neighbors way too much, if a disaster strike aid will reach them before their own PM knows or do anything. Best of diplomatic core is posted in these countries. We pamper them, then we reward their tantrums, then we complain they are spoiled? Why do you think Oli or Yameen who get less votes than an Indian MLA won't squeeze you out if he gets unlimited access to PM or other bigwigs of India? We carry Nepal more than any European nation and it's just an liability, nothing productive comes out of it, we keep throwing money at them. In most disasters relief won't reach Indian poor people but Nepal (or others) will get it overnight.

It's Kashmir policy redux all over, we pamper them for just one condition that their soil won't be used against India and they won't fulfill even that. Open borders with Nepal are favorite infiltration route to India for Pakistani terrorists and they side with China to create border issue out of nowhere. Same with Maldives, Sri Lanka, Bangladesh.

As if all of them has cracked the code that the more you go anti India, present it as enemy more popular domestically you become and get more pampering from Delhi. So is our strategy working? Something needs to be changed.

We should start treating them fairly, for value they bring to the table and not stupid illusion of brotherhood or religion. Once relationship become transactional, they start paying the fair price they will appreciate tiny tiny concessions and aid. Occasional whipping them to show who is is big brother will keep them on toes too. When they come to Delhi they should come with hope and fear of Indian state in heart, rejection of their demand should be a real possibility and hurtful for them, without them they will keep toying you.

Or as Ramayan says -
बिनय न मानत जलधि जड़ गए तीनि दिन बीति।
बोले राम सकोप तब भय बिनु होइ न प्रीति।।


Or Dinkar Said -

क्षमाशील हो रिपु -समक्ष तुम हुये विनत जितना ही,
दुष्ट कौरवों ने तुमको कायर समझा उतना ही ।

अत्याचार सहन करने का कुफल यही होता है,
पौरुष का आतंक मनुज कोमल होकर खोता है ।

क्षमा शोभती उस भुजंग को जिसके पास गरल हो ,
उसको क्या जो दंतहीन, विषरहित, विनीत, सरल हो ।
 
Nepal House of Representatives unanimously endorses Constitution amendment bill endorsing new map
New Delhi: Nepal`s House of Representatives on Tuesday (June 9) unanimously endorsed a proposal to consider the Constitution amendment bill to replace the country’s new political and administrative map which includes Kalapani, Lipu Lekh, and Limpiyadhura, according to My Republica report.

The ruling Nepal Communist Party, the main opposition party Nepali Congress and Madhes-based parties reportedly backed the proposal to consider the constitution amendment bill in the House of Representatives.

Earlier on May 30, Nepal's Parliamentary Affairs Minister Shivamaya Tumbahangphe had tabled the bill for discussions at Parliament to amend the constitution to update the countrThe bill was tabled by Nepalese Law Minister Shivamaya Tumbahangphe in Parliament on May 31. The Amendment proposal seeks to incorporate updated political map in the Constitution of Nepal- 2072, depicting areas of Kalapani, Lipulekh and Limpiyadhura within its own borders.

On May 22, the government had registered the bill at Parliament, seeking to amend Schedule 3 of the constitution to update Nepal`s political map in the national emblem.

As the constitution amendment requires a two-thirds majority, the ruling Nepal Communist Party, which holds a two-thirds majority in upper House, fell short of dominance in the lower House compelling it to seek support from other parties.

On May 30, the Nepali Congress which has 63 seats, decided to support the amendment proposal which allowed the Nepal Communist Party with its 174 seats to have the requisite majority.

Notably, the latest border dispute between the countries began over India's inauguration last month of a Himalayan link road built in a region that lies at a strategic three-way junction with Tibet and China.

The 80-kilometer road, inaugurated by Defense Minister Rajnath Singh, cuts through the Lipu Lekh Himalayan pass, considered one of the shortest and most feasible trade routes between India and China.

Nepal fiercely contested the inauguration of the road, and the government of Prime Minister Khadga Prasad Sharma Oli issued a new political map of Nepal that showed the disputed territory within its borders.