India’s edible oil imports rise 3 pc in FY26 on Nepal duty-free surge, industry body says
India’s edible oil imports rose 3% to 166.51 lakh tonnes in FY2025-26, driven by Nepal’s duty-free exports under SAFTA, which surged 113% to 7.36 lakh tonnes. SEA cited higher global prices, weaker rupee, and low oilseed output behind India’s dependence
India’s edible oil imports rose by 3 per cent to 166.51 lakh tonnes in the 2025–26 fiscal year, mainly driven by a sharp increase in duty-free imports from Nepal, according to the Solvent Extractors’ Association of India (SEA). Imports had stood at 161.82 lakh tonnes in the previous fiscal year.
Nepal, which enjoys zero-duty access to Indian markets under the South Asian Free Trade Area (SAFTA) agreement, exported 7.36 lakh tonnes of edible oils to India during the year. This was more than double the 3.45 lakh tonnes shipped in the previous fiscal, marking a 113 per cent increase. Refined soybean oil accounted for the majority of Nepal’s exports to India, while smaller quantities of sunflower oil, RBD Palmolein, and rapeseed oil were also traded.
“The surge in duty-free imports of refined oils from Nepal substantially contributed to the increase in India’s total edible oil imports during the year,” SEA said in a statement. The association noted that without the SAFTA arrangement, overall imports would likely have remained below the previous year’s level despite rising domestic demand. It added that higher international prices and a weaker rupee against the US dollar further raised import costs.
India continues to rely heavily on overseas supplies, with domestic production meeting only around 40 per cent of the country’s total edible oil requirement. SEA said low oilseed yields, fragmented landholdings, limited irrigation facilities, and a policy focus on wheat and rice cultivation have restricted growth in domestic oilseed production.
The association urged the government to take measures to improve oilseed productivity and promote domestic value addition to reduce long-term dependence on imports. It also referred to Prime Minister Narendra Modi’s recent appeal for consumers to moderate edible oil consumption, stating that reducing excess usage along with increasing domestic output could help lower import dependence and ease pressure on foreign exchange reserves.
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Source : Devdiscourse
