Edible Oil Imports Rise by 3% in FY 2025-26

21-May-2026 03:58 PM

Mumbai. The Solvent Extractors' Association of India (SEA)—a leading organization representing the indigenous vegetable oil industry and trade sector—states that the total import of edible oils into India rose by 3 percent during the financial year 2025-26 compared to 2024-25, driven by substantial duty-free imports of edible oils from Nepal.

Data from the SEA reveals that during the entire period of FY 2025-26 (April–March), India's edible oil imports surged to 166.51 lakh tonnes, whereas in 2024-25, they had reached only 161.82 lakh tonnes. This increase in edible oil imports was recorded despite high international market prices and a significant depreciation of the Rupee against the US Dollar. Consequently, import expenditure also rose.

The Association's Executive Director notes that, under the SAFTA agreement, substantial quantities of duty-free edible oils (specifically refined oils) are being imported into India from Nepal, even though Nepal is not a major producer of these oils itself.

Nepal imports crude palm oil, crude soybean oil, and crude sunflower oil from abroad, processes them, and then exports the refined edible oils to India. Since no customs duty is levied on edible oil imports from Nepal into India, they prove to be a more cost-effective option. Furthermore, as the goods are transported via road, the transit time is also significantly shorter.

According to available data, Nepal exported approximately 3.45 lakh tonnes of edible oil in 2024-25; this figure more than doubled in the financial year 2025-26, reaching 7.36 lakh tonnes. Thus, a massive increase of 113 percent was recorded in these exports. Refined soybean oil accounted for the largest share of this volume.