Edible oil import from Nepal sparks concern, SEA seeks corrective action
This story was originally published at 19:11 IST on 20 May 2025
Register to read our real-time news.Informist, Tuesday, May 20, 2025
NEW DELHI – The Solvent Extractors Association has raised concerns over the import of edible oils from Nepal, which it says has resulted in a loss of revenue to the exchequer and adversely affected the domestic refining industry in eastern and northern India.
According to the association, following the increase in Indian import duties in September last year, Nepalese refiners have been importing crude edible oil and exporting refined edible oil to India under the South Asian Free Trade Area agreement at zero duty. Between October 15 and April 15, Nepal imported approximately 580,000 tons of crude edible oil and exported 350,000 tons of refined edible oil to India, the SEA said in a release.
The association also urged the government to lift the ban on the export of de-oiled rice bran, imposed in July 2023 due to high domestic prices. With prices now below INR 9,000 per tonne and demand lower, a surplus has emerged, impacting rice bran processors and millers in states like West Bengal and Odisha, it said. According to the release, the SEA held a virtual meeting with the Ministry of Agriculture on the matter and is awaiting the ministry's decision.
Meanwhile, the SEA sees an opportunity for India to re-enter the Chinese market for rapeseed meal, given the global shortage and competitive pricing of Indian rapeseed meal, it said. The association is coordinating with the Ministry of Commerce and the Export Inspection Council of India to explore this prospect.
Other key issues raised by the association include the duty differential between crude and refined palm oil. The SEA has requested an increase in import duty to 15% from 7.5% to prevent underutilisation of domestic refining capacity.
It is also raising concerns over the decline in castor seed production, which may affect exports in 2025. India remains the world's leading exporter of castor oil, meeting nearly 90% of global demand, the SEA said, and added that it is working with the government to address the concerns and find solutions to support the industry. End
Reported by Pallavi Singhal
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
