An Indian gazette notice revoked controls that said all Sri Lankan vanaspati exports would have to go through a state run agricultural and marketing board, restricting import volumes.
The Public Notice No.17 (RE-2006/2004-09) dated June 2, 2006 is hereby withdrawn, the notice, published by the Indian government on Tuesday, said.
As a compromise, both sides have agreed to cap exports of vanaspati a hydrogenated palm oil, similar product bakery shortenings and margarine to 250,000 metric tons a year.
The cap on volumes of the oil is also tied to a 2500 metric tonne limit on other controversial export black pepper, as well as 500 metric tons of desiccated coconut a year.
The quota for each year also begins on April 1 and ends on March 31 the following year.
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For this year, local exporters will have to deduct volumes that were already shipped before the trade dispute in June shut down all 12 local factories.
The quantum of imports of Vanaspa