Nepal’s edible oil exports to India, valued at Rs146 billion, are under intense scrutiny as industry experts and Indian refiners argue the trade surge is driven by tariff arbitrage rather than genuine domestic value addition.
The controversy highlights a growing loophole in South Asian trade dynamics, where duty-free access is being exploited to bypass Indian import duties on refined oils.
Indian edible oil refiners have formally urged the New Delhi government to curb these duty-free imports, warning that the influx undermines local refining capacity and distorts market competition.
The Indian Vegetable Oil Producers' Association (IVPA) has joined the call, requesting urgent government intervention to protect domestic interests.
This pressure comes as India’s reliance on imported edible oils intensifies, with duty-free refined shipments from Nepal already surpassing 800,000 tonnes.
The trade pattern raises broader questions about supply chain integrity and regional trade agreements.