Edible oil industry body points to trade distortions from rise in imports from Nepal

Lucknow. The Indian Vegetable Oil Producers Association (IVPA), an industry body representing India’s edible oil refining industry, has submitted a formal memorandum to central government departments, highlighting their concerns about the increase in duty-free edible oil imports from Nepal under the South Asian Free Trade Area (SAFTA) framework. According to the IVPA, imports from Nepal have increased sharply in early 2025, exceeding 1.80 lakh metric tonnes between January and March – up from 1.25 lakh tonnes in the whole of 2024.

The IVPA said most of the 1.25 lakh tonnes of imports in 2024 arrived in India only during the October-December quarter, possibly following the increase in Indian duties due to the resumption of soya imports to India through Nepal. Under the SAFTA agreement and the India-Nepal Trade Treaty, vegetable oil imports from Nepal enjoy duty-free access to the Indian market. In September 2024, India reportedly imposed a 20 per cent basic customs duty on crude and refined vegetable oils.

“This increase, which is not supported by Nepal’s own oilseed production capacity, raises serious questions about effective enforcement of origin rules and the risk of third country routing,” the edible oil industry body said in a statement on Monday.