SEA hopes edible oil imports from Nepal will come down after customs notification
The SEA welcomes the Customs Department’s new rule requiring “Proof of Origin” for concessional duty imports to curb excessive edible oil inflows from Nepal. SEA also expands its mustard model farms to boost yields and reduce imports. Additionally, it partners with Technoserve under the IGNITE program to promote voluntary edible oil fortification for better nutrition and industry sustainability.
The Solvent Extractors’ Association of India (SEA) hopes that the notification dated March 18 issued by the Customs Department asking the exporters/importers to provide “Proof of Origin” instead of a “Certificate of Origin” for commodities imported under concessional duty would help reduce the flow of edible oil from Nepal and other SAARC countries.
In his monthly letter to the SEA members, Sanjeev Asthana, SEA President, said the massive influx of refined soyabean oil and palm oil from Nepal to India, in violation of rules of origin, continues to severely impact domestic refiners and oilseed farmers, leading to significant revenue losses for the government. The import of edible oil at zero duty under the SAFTA (South Asian Free Trade Area) agreement from Nepal is creating havoc not only in Northern and Eastern India but also is now spreading to Southern and Central India.
What began as a trickle has now reached alarming proportions. This is threatening the survival of the vegetable oil refining industry in these regions, distorting markets and undermining the purpose of high import duties on edible oils, he said.
Stating that SEA has strongly urged the Prime Minister and other key ministers to intervene and take necessary actions to regulate the inflow of edible oils from Nepal and other SAARC countries, he said the Union Commerce Ministry has responded positively and assured action.
“We are pleased to inform you that the Customs Department has issued Notification No 14/2025-Customs on March 18 2025, requiring exporters/importers to provide a ‘Proof of Origin’ instead of a ‘Certificate of Origin’ for commodities imported under concessional duty. This move is expected to pressure exporters/importers to provide accurate information, thus reducing the flow of edible oils from Nepal and other SAARC countries under SAFTA,” he said.
Mustard model farms
Asthana said rapeseed and mustard remain critical crops in reducing India’s dependence on oilseed imports. Strengthening extension services and raising farmer awareness on best cultivation practices are essential to achieving self-sufficiency in edible oils and realising the vision of ‘Aatmanirbhar Bharat’ as outlined by the Prime Minister Narendra Modi.
Referring to SEA’s Sustainable Mustard Model Farms (MMF) for boosting yield, he said the initiative, which was launched in 2020-21, has been instrumental in equipping farmers with advanced agricultural practices, thereby enhancing productivity and resilience.
India’s mustard production has significantly increased from 86 lakh tonnes (lt) in 2020-21 to 116 lt in 2023-24. The cultivated area has also expanded annually, growing from 67 lakh hectares (lh) in 2020-21 to approximately 94 lh in 2023-24.
This year, the MMF initiative has expanded to over 2,000 farms under frontline demonstrations across 750 farms in Madhya Pradesh, 350 in Uttar Pradesh and 900 in Rajasthan, which serve as knowledge hubs for broader farmer adoption. The MMFs have demonstrated significant yield improvements.
“Compared to traditional farming practices, improved techniques have shown an average yield increase of 20-25 per cent. In 2024-25, a yield improvement of approximately 24 per cent has been recorded,” he said.
MoU with Technoserve
The SEA President said SEA signed a memorandum of understanding (MoU) with Technoserve, Inc USA, on March 17, to promote the voluntary fortification of edible oils under their ‘Millers for Nutrition’ programme, named ‘The Inspiring Good Nutrition Through Enterprise’ (IGNITE), funded by the Bill & Melinda Gates Foundation. This initiative will help food processors enhance their capacity and resources for sustainable fortification, a significant step forward for the industry, he said.
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Source : The Hindu Businessline
