IVPA urges curbs on duty-free Nepal edible oil imports

NEW DELHI: The Indian Vegetable Oil Producers' Association (IVPA) called on the government on Monday to restrict the sharp increase in duty-free edible oil imports from Nepal under South Asian Free Trade Area (SAFTA) provisions to protect domestic processors. Imports from Nepal surged to 1,80,000 tonnes in January-March 2025, exceeding the 1,25,000 tonnes recorded throughout 2024, IVPA said in a statement.

The industry body noted that most of 2024's imports arrived during October-December following India's duty hikes, suggesting potential third-country routing through Nepal.

"This growth, which is not backed by Nepal's own oilseed production capacity, raises serious questions around the effective enforcement of Rules of Origin," the association said.

The influx of duty-free imports has created an uneven playing field for Indian processors and weakened market sentiment, causing farmers to receive prices "significantly below" the minimum support price, IVPA added.

The organisation has submitted recommendations to the ministries aimed at ensuring SAFTA provisions are implemented properly while supporting the country's agricultural interests.