Govt takes up herbs export issue with India

 The government has taken diplomatic initiative to resolve the problems in exporting medicinal herbs to India following the introduction of new rules in contravention to the spirit of bi-lateral trade treaty by India´s Uttar Pradesh (UP) state-government. 

The Ministry of Commerce and Supplies (MoCS) approached Indian embassy officials in Kathmandu in a bid to resolve the problem that has left Nepali medicinal herbs worth Rs 250 million stuck at Nepal Customs office for the last couple of months. 

“We spoke to the officials at the Indian Embassy in Kathmandu in an effort to settle the problem that has affected the exports of medicinal herb from our country to India. The embassy officials have assured that they would communicate the matter to the Ministry of Finance of India as soon as possible,” Lal Mani Joshi, secretary at the MoCS, told Republica on Sunday.

Traders had met Prime Minister Baburam Bhattarai last Friday and urged him to take immediate actions to resolve the problem.

The exports of medicinal herbs from mid-western and far-western regions have come to a grinding halt after the UP state-government of India made it mandatory for even the Nepali exporters to acquire a license from its Department of Forest to continue the exports.

Officials at the Indian embassy were maintaining ignorance about the problem. 

“As per the existing bi-lateral treaty, this problem shouldn´t have occurred. However, the state governments are not acting as per the treaty´s spirit,” said Joshi, quoting an embassy official.

UP state government had imposed the similar rule in 2000 prompting Nepali traders to file a petition at the Supreme Court of India. The Indian Supreme Court had issued a stay order asking the UP government not to disrupt the imports of Nepali medicinal herbs. 

But this time the UP state government imposed a new rule after the SC passed a verdict clarifying that the Ministry of Forest has the authority to deal with the issue. 

“We are trying to get a response from the Indian central government as soon as possible,” Joshi said. 

The bilateral trade treaty between Nepal and India clearly mentions that all goods of Indian or Nepalese origin shall be allowed to move unhampered to Nepal or India respectively without being subjected to any quantitative restrictions, licensing or permit systems.