Urgent Need to Curb Refined Edible Oil Imports from Nepal

20-Jul-2026 05:28 PM

New Delhi: The Indian Vegetable Oil Producers Association (IVPA), a leading body representing the domestic vegetable oil industry and trade, has expressed serious concern over the record-breaking imports of duty-free refined edible oil from Nepal. The association has urged the Central Government to review its policies immediately and impose strict curbs on these imports.

According to the association, imports of edible oil from Nepal have surged more than seventeen-fold in just two years under the South Asia Free Trade Area (SAFTA) framework. Imports stood at 47,295 tonnes in 2023, rose to 124,056 tonnes in 2024, and skyrocketed to a record high of over 8.04 lakh tonnes in 2025.

Given this trend, imports of Nepali edible oil are likely to rise further to nearly 10 lakh tonnes this year, positioning Nepal among the top suppliers of edible oil to India. It has already become the largest exporter of refined edible oil to India.

This trend is causing significant damage to the domestic refining industry. Since edible oil imported from Nepal attracts no customs duty, large quantities are imported into Nepal from other countries and subsequently re-exported to India.

Nepal has very limited domestic production of oilseeds; however, the condition for duty-free export to India stipulates that the product (edible oil) must be manufactured within Nepal's domestic territory. The Government of India should amend its policies to ensure strict enforcement of this condition.