★ The Solvent Extractors’ Association of India (SEA) has released edible oil import data for the period April 2025 to March 2026. During the year, India imported a total of 166.51 lakh tonnes of edible oils compared to 161.82 lakh tonnes in the previous year, registering an increase of around 3% despite elevated global edible oil prices and sharp depreciation of the Indian Rupee against the US Dollar.

★ A major reason behind the increase in overall edible oil imports was the sharp rise in duty-free imports from Nepal under the SAFTA arrangement. Under the SAFTA agreement, Nepal enjoys zero-duty access for exports of refined edible oils to India. During April 2025 to March 2026, Nepal exported 7.36 lakh tonnes of edible oils to India compared to only 3.45 lakh tonnes in the previous year, marking a steep increase of 113%.

★ Refined soybean oil accounted for the largest share of imports from Nepal, along with smaller quantities of sunflower oil, RBD palmolein and rapeseed oil.

★ Had Nepal not enjoyed the duty-free export facility under SAFTA, India’s overall edible oil imports would likely have remained below last year’s level despite rising domestic demand. The sharp surge in duty-free imports of refined oils from Nepal played a significant role in pushing India’s total edible oil imports higher during the year.

★ India continues to remain structurally dependent on edible oil imports, as domestic production fulfils only around 40% of the country’s total requirement. Low oilseed productivity, fragmented landholdings, inadequate irrigation facilities and policy preference toward crops such as wheat and rice continue to restrict growth in domestic oilseed production.

★ The Association believes that strengthening domestic oilseed production, improving productivity and encouraging value addition within the country are essential long-term measures to reduce dependence on edible oil imports and ensure stability in the domestic edible oil sector.

★ In this context, the recent appeal by Prime Minister Narendra Modi for moderation in edible oil consumption is also being viewed as significant. Experts believe that alongside increasing domestic production, controlling excessive consumption can help reduce import dependence, ease pressure on foreign exchange reserves and strengthen India’s long-term edible oil security amid rising global supply uncertainties.