IVPA Sounds Alarm over Duty-Free Edible Oil Surge from Nepal

The Indian Vegetable Oil Producers' Association is raising alarms about a spike in duty-free edible oil imports from Nepal, citing risks to local producers and market imbalances. They urge the government to enforce trade rules to protect the domestic economy from unintended consequences of the SAFTA agreement.

The Indian Vegetable Oil Producers' Association (IVPA) has voiced serious concerns regarding a spike in duty-free edible oil imports from Nepal under the SAFTA framework.

The association claims imports surged to 1.80 lakh metric tons in early 2025, compared to 1.25 lakh tons throughout 2024. This was in part due to dutystructuring changes imposed by India last year. These imports, not substantiated by Nepal's domestic production, have led to fears of third-country routing and calls for stricter trade rule enforcement.

The IVPA warns of severe repercussions on the domestic market, including reduced farmer profits and underutilized local refining capacity. In response, they have submitted a detailed proposal to the government for actionable measures that align with India's agricultural interests.

(With inputs from agencies.)