Edible Oil Industry Body Flags Trade Distortions From Nepal Under SAFTA

The Indian Vegetable Oil Producers' Association (IVPA), an industry body representing India's edible oil refining industry, has submitted a formal representation to the central government departments, highlighting their concerns around the surge in duty-free edible oil imports from Nepal under the South Asian Free Trade Area (SAFTA) framework.

- TDG NETWORK

According to IVPA, imports from Nepal rose sharply in early 2025, reaching over 1.80 lakh metric tons between January and March—up from 1.25 lakh tons in the whole of 2024.

IVPA said most of the 1.25 lakh tons of imports in 2024 arrived in India only during the October-December quarter, following a hike in Indian duties, possibly due to the rerouted soya imports to India via 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 percent basic customs duty on crude and refined vegetable oils.