IVPA Sounds Alarm as Nepal Edible Oil Imports Surge 17x, Breach 8 Lakh Tonnes

Indian Vegetable Oil Producers' Association flags SAFTA duty-free imports from Nepal jumping from 47,295 tonnes in 2023 to 8.04 lakh tonnes in 2025, warning of ₹2,000-2,500 crore annual revenue loss and threats to domestic refiners and farmers.

— Source publishedMon, 20 Jul, 2026, 17:03 IST·First seen Mon, 20 Jul, 2026, 17:06 IST·Source BL · Consumer & Economy

What happened

IVPA urges India to review SAFTA duty-free edible oil imports from Nepal, which surged 17x in two years, threatening domestic refining, farmers and customs

Key facts

  • 8.04 lakh tonnes 2025
  • 1.24 lakh tonnes 2024
  • 47,295 tonnes 2023
  • ₹2,000-2,500 crore annual revenue loss

Why this matters

This trade loophole exposure highlights vulnerability in domestic refining assets, creating both M&A risk for exposed players and consolidation opportunities as smaller refiners struggle.

What to watch

  • DGFT safeguard duty investigation initiation notice
  • Ministry of Commerce statement referencing SAFTA rules-of-origin review
  • Nepal Oil Industries Association or government response/pushback
  • Import data for Q3/Q4 FY26 showing continued surge or sudden drop
  • Domestic edible oil price/MSP movements signaling farmer distress
  • IVPA/SEA to formally petition DGFT and Ministry of Commerce for anti-circumvention probe
  • Track any DGFT notification altering rules of origin or minimum processing criteria for Nepal-origin edible oil
  • Watch for domestic oilseed farmer bodies (soybean/mustard) joining lobbying pressure ahead of sowing season
  • Monitor Nepal government/refiner reaction and any pre-emptive shipment front-loading before curbs
  • Check MEA involvement given bilateral trade-sensitivity with Nepal

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