Call for Action on Edible Oil Imports from Nepal: IVPA

09-Apr-2025 04:45 PM

Call for Action on Edible Oil Imports from Nepal: IVPA
★ The Indian Vegetable Oil Producers’ Association (IVPA) has urged the government to take strict measures to curb the rising duty-free imports of edible oil from Nepal. These imports are allowed under the SAFTA (South Asia Free Trade Area) agreement and the ★ India-Nepal Trade Treaty, but they are causing significant harm to domestic producers.
Key demands by IVPA:  
- Importers should be required to furnish a bank guarantee equivalent to the duty differential to ensure compliance with the Rules of Origin (RoO).  
- The Agriculture Infrastructure and Development Cess (AIDC) on refined oil should be increased from 5% to 10–15%.  
- Imports from Nepal should be allowed only through government agencies like NAFED.  
- A cap should be imposed on the volume of edible oil imports from Nepal.
★ IVPA states that edible oils from other countries are being rerouted through Nepal to take advantage of duty-free access, which is pushing down domestic oil prices. This has led to soybean and mustard prices falling below the Minimum Support Price (MSP), affecting farmers’ income and discouraging cultivation.
★ The association has written to Agriculture Minister Shivraj Singh Chouhan, urging his intervention. Incidentally, the minister is currently in Kathmandu attending the BIMSTEC Agriculture Ministers’ Meeting.
★ Import figures from Nepal to India:  
- In 2018: 16,925 tonnes  
- 2019: 2.42 lakh tonnes  
- 2020: 2.45 lakh tonnes  
- 2021: 4.9 lakh tonnes  
- 2023: dropped to 2.04 lakh tonnes  
- 2025 (Jan–Mar): 1.8 lakh tonnes (60,000 tonnes in March alone)
★ According to IVPA, this situation is undermining India’s efforts toward self-reliance in edible oils and negatively impacting farmers’ incomes.