The Indian Vegetable Oil Producers’ Association (IVPA) has requested the government to step in and limit the sharp rise in duty-free edible oil imports from Nepal. These imports are allowed under the South Asian Free Trade Area (SAFTA) agreement, but the IVPA says the current situation is hurting Indian processors and farmers.
According to IVPA, India imported 1.8 lakh tonnes of edible oil from Nepal between January and March 2025. This is much higher than the total of 1.25 lakh tonnes imported from Nepal during all of 2024. Most of last year’s imports arrived after India increased duties on edible oil, suggesting that some products may be entering India through Nepal from third countries to avoid higher taxes.
IVPA raised concerns about whether Nepal is following the proper trade rules under SAFTA. They pointed out that Nepal does not have enough domestic oilseed production to support such large export volumes. This raises doubts about whether the imports are truly from Nepal or just passing through.
The association stated that the large amount of duty-free imports is hurting local processors. With cheaper imported oil flooding the market, Indian farmers are forced to sell their produce at prices much lower than the government’s minimum support price. This situation is weakening both the processing industry and the farming community.
To address these issues, IVPA has sent suggestions to the government. They have asked for better enforcement of SAFTA rules and support for local agriculture. Their aim is to ensure fair trade while protecting Indian producers and farmers from unfair competition.
