Industry urges PM to curb surge in duty-free edible oil imports from Nepal
The Indian edible oil industry has raised concerns over a surge in duty-free refined soybean and palm oil imports from Nepal under the SAFTA agreement. Imports jumped from 687 MT in July-August 2024 to 56,444 MT by mid-January 2025. Industry leaders urge government intervention, citing threats to domestic refiners, farmers, and government revenue losses.
The Indian edible oil industry has raised concerns over a sudden and massive influx of refined soybean and palm oil from Nepal, which they claim is bypassing trade rules and severely impacting domestic refiners, farmers, and government revenue.
In a letter to Prime Minister Narendra Modi, industry representatives called for immediate intervention to regulate the duty-free imports, which they say are flooding the Indian market under the South Asian Free Trade Area (SAFTA) agreement. The letter was also addressed to Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal, Agriculture Minister Shivraj Singh Chouhan, and Food and Consumer Affairs Minister Prahlad Joshi.
Data reveals a sharp rise in Nepal’s exports of edible oils to India, jumping from just 687 metric tonnes (MT) in July-August 2024 to 56,444 MT between 15 December 2024 and 15 January 2025. The figures show a steady increase over the months—2,240 MT in August-September, 6,765 MT in September-October, 18,165 MT in October-November, and 32,816 MT in November-December.
Experts allege that Nepal-based traders are importing these oils from countries such as Malaysia, Indonesia, Argentina, and Brazil, taking advantage of SAFTA’s duty-free status to avoid normal import duties.
“The sudden increase in duty-free imports of edible oil is a planned approach by traders in other countries to bypass the normal route of duty-paid imports of edible oil, which are not even produced in the SAFTA region,” said Sanjeev Asthana, President of the Solvent Extraction Association (SEA).
He further warned that the influx is no longer limited to northern and eastern India but is now disrupting markets in southern and central regions as well.
“The import of edible oil at nil duty under the SAFTA agreement from Nepal is creating havoc not only in northern and eastern India but has now also reached southern and central India,” Asthana stated.
The association has urged the Indian government to take immediate steps to regulate the inflow of edible oil from Nepal and other SAARC countries, citing threats to the domestic vegetable oil refining industry and substantial revenue losses to the government.
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Source : The New Indian Express
