India’s edible oil imports rose 3% to 166.51 lakh tonnes in FY26, driven largely by a sharp increase in duty-free shipments from Nepal under the South Asian Free Trade Area (SAFTA) agreement, according to data released by the Solvent Extractors’ Association of India (SEA). Imports had stood at 161.82 lakh tonnes in the previous fiscal year.
Nepal exported 7.36 lakh tonnes of edible oils to India during FY26, more than double the 3.45 lakh tonnes shipped a year earlier, marking a 113% rise. Refined soybean oil accounted for the bulk of these exports, along with smaller quantities of sunflower oil, RBD palmolein and rapeseed oil. Industry officials said duty-free access allowed Nepali refiners to import crude edible oils, process them locally and export refined products to India at competitive prices.
SEA said the surge in Nepal-origin refined oils substantially contributed to the increase in India’s overall edible oil imports, even as higher international prices and rupee depreciation raised import costs. The industry body warned that Indian refiners remain at a disadvantage as they continue to pay import duties on crude edible oils while Nepal enjoys zero-duty market access under SAFTA.
India continues to rely heavily on imports to meet domestic edible oil demand, with local production fulfilling only around 40% of total consumption needs. Industry stakeholders have called for higher oilseed productivity, stable import policies and greater domestic value addition to reduce long-term dependence on overseas supplies and protect domestic refiners from tariff arbitrage.