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India’s edible oil imports rise around 3% in FY26 on sharp jump in duty-free imports from Nepal: SEA
May-19-2026

Industry body Solvent Extractors' Association of India (SEA) has said that India’s edible oil imports increased by 2.90% to 166.51 lakh tonnes in the 2025-26 fiscal year (FY26), as compared to 161.82 lakh tonnes in the prior fiscal year. The rise in imports was due to a sharp jump in duty-free imports from Nepal. The association said that without the SAFTA arrangement, overall imports would likely have fallen short of the previous year's level despite rising domestic demand, even as higher international prices and a weaker rupee against the dollar increased import costs. India remains heavily dependent on overseas supplies, with domestic production meeting only around 40 per cent of total edible oil requirements.

Nepal, which enjoys zero-duty access to Indian markets under the South Asian Free Trade Area (SAFTA) agreement, exported 7.36 lakh tonnes of edible oils to India during the year, more than double the 3.45 lakh tonnes shipped in the previous fiscal, a rise of 113 per cent. Refined soybean oil made up the bulk of Nepal's exports to India, with smaller volumes of sunflower oil, RBD Palmolein and rapeseed oil also traded.

SEA said low oilseed yields, fragmented landholdings, limited irrigation and a policy tilt toward wheat and rice cultivation have constrained domestic output growth. It called for steps to boost oilseed productivity and encourage domestic value addition to reduce long-term import reliance. It also flagged Prime Minister Narendra Modi's recent appeal for consumers to moderate edible oil consumption, and said that curbing excess use alongside raising domestic output would help lower import dependence and ease pressure on foreign exchange reserves.
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