Increase in Edible Oil Imports from Nepal to India

15-Apr-2025 10:33 AM

During January-March 2025, edible oil imports from Nepal reached 180,000 tons, exceeding the 120,000 tons recorded in the 2024 calendar year. According to IVPA, Nepal's annual edible oil consumption is around 430,000 tons or 35,000 tons per month. 

Oil produced from imported crude in Nepal is being re-routed to India without sufficient value addition, exploiting duty exemptions under SAFTA, stated Sudhakar Desai, president of IVPA, in a letter to Agriculture Minister Shivraj Singh Chouhan.

According to IVPA, most of the 2024 imports occurred during October-December, when India had raised import duties.

While oil exports from Nepal increased, there was no corresponding rise in domestic oilseed production, indicating that the oil may have been imported from other countries. IVPA has once again urged the government to intervene in the matter.

Currently, the prices of oilseeds in the country are at low levels, not even matching the Minimum Support Price (MSP), affecting not only the farmers but the entire oil industry. 

Furthermore, the rise in DDGS (Distiller’s Dried Grains with Solubles) usage has had a significant impact on the consumption of oilseeds like groundnut, mustard, maize, sorghum, and millet.