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CommodityWireIndia FY26 edible oil imports rise 3% on zero-duty imports from Nepal

India FY26 edible oil imports rise 3% on zero-duty imports from Nepal

This story was originally published at 14:24 IST on 19 May 2026
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Informist, Tuesday, May 19, 2026

NEW DELHI – India's edible oil imports rose 3% to 16.65 million tonnes in 2025-26 (Apr-Mar), the Solvent Extractors' Association of India said. Higher international edible oil prices and a weak rupee failed to reduce imports as traders increasingly sourced duty-free edible oils from Nepal. Imports from Nepal surged 113% on year to 736,000 tonnes in FY26. 

 

"Had zero-duty imports under SAFTA (South Asian Free Trade Area) not been available to Nepal, India's overall edible oil imports during 2025-26 would likely have remained below last year's level despite rising domestic demand," SEA said. Nepal's shipments to India were mainly refined soybean oil, and smaller quantities of sunflower oil, rapeseed oil, and refined, bleached, and deodarised palmolein.  

 

India relies on imports to meet around 60% of its cooking oil demand amid insufficient domestic oilseed production. "Low oilseed productivity, fragmented landholdings, inadequate irrigation facilities, and policy preference towards wheat and rice cultivation continue to restrict growth in domestic oilseed production," SEA said. 

 

SEA said that moderating edible oil consumption as urged by Prime Minister Narendra Modi could reduce imports and ease pressure on foreign exchange reserves.  End

 

Reported by Afra Abubacker

Edited by Akul Nishant Akhoury

 

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