IVPA Urges Government Action on Surging Edible Oil Imports

The Indian Vegetable Oil Producers' Association has called on the government to address the rise in duty-free edible oil imports from Nepal, which they say is harming domestic processors. The imports exceeded all of 2024's volumes in the first quarter of 2025, raising concerns about Rule of Origin enforcement.

The Indian Vegetable Oil Producers' Association (IVPA) has asked the government to restrain the significant increase in duty-free edible oil imports from Nepal, utilizing the South Asian Free Trade Area (SAFTA) provisions. This step is crucial to shield domestic processors from potential market disruptions.

Imports from Nepal have surged to 180,000 tonnes in the first quarter of 2025, surpassing the 125,000 tonnes imported during the entire year of 2024. The IVPA's statement highlighted that most of 2024's imports came after India's duty hikes, implying possible third-country routing via Nepal.

Expressing concern over these developments, the IVPA emphasized that Nepal's oil import growth, unsupported by its own production capacity, questions the proper implementation of Rules of Origin. The association warns that such dynamics create an uneven field for Indian processors and depress farmer prices below the minimum support level. Recommendations have been submitted to ensure better enforcement of SAFTA provisions while safeguarding agricultural interests.

(With inputs from agencies.)