Sri Lanka’s vanaspathi exports to India plummet By Bandula Sirimanna View(s): View(s):Sri Lanka’s vanaspathi export industry (fully or partially hydrogenated vegetable cooking oil) established to cater to the needs of India under the Free Trade Agreement has been adversely affected following the ban imposed on crude palm oil (HS Code1511.10) by the government. Thirteen companies engaged in the production of vanaspathi using palm oil for the Indian market are on the verge of collapsing, several leading members of the Vanaspathi Exporters Association told the Business Times. The 13 factories with around 5000 workers are set to close down operations as it has to cancel all forward import contracts with palm oil suppliers. The local vanaspathi industry came into being as a result of FTA which has allowed Sri Lanka to export 250,000 tonnes duty-free vanaspati to India per annum with its value at around US$32 million. According to industry sources, the formal local manufacturing industry is worth Rs.

Source: Sunday Times May 02, 2021 00:54 UTC