India’s Customs Order Stopped Importation of Sri Lankan Desiccated Coconut Powder

India’s desiccated coconut (DC) powder manufacturers were relieved as cheaper imports from Sri Lanka have come under government scrutiny, according to BusinessLine report on November 11 last year.  In October, BusinessLine published a report “Sri Lankan imports hits domestic desiccated coconut powder sector”, highlighting the plight of local DC powder manufacturers disadvantaged by cheap imports at ?80-90 per kg against domestic price of ?110.  The product is used as an ingredient in savory and sweet recipes to provide the flavor of coconut.
The Joint Commissioner of Customs (Special Intelligence and Investigation Branch), Chennai, in its order and based on the representation from the Coconut Development Board, has directed the Development Commissioner, Madras Export Processing Zone, to alert improper importation of DC powder and all such consignments for further probe.  The directive cited misdeclaration of DC powder imports by some importers thus do not pay the right duties. For example, some imports are classified under cattle feed category where duty is lower.
Hailing the Customs’ move, the Federation of Indian Desiccated Coconut Manufacturers, said DC powder imports from Sri Lanka have been stopped and the domestic manufacturers are now getting a reasonable price of around ?130 per kg.  On the part of the Coconut Development Board, it said in its representation that the imported product is being used as an adulterant in high quality DC, which is hampering the quality of the product and affecting the domestic industry. It also urged not to permit imports it if does not satisfy the quality standards and to carry out strict scrutiny of samples.