India's Edible Oil Imports Surge 3% in FY26 Amid Duty-Free Boost from Nepal

India's Edible Oil Imports Surge 3% to 166.51 Lakh Tonnes in 2025-26 Fiscal Year

India's edible oil imports rose 3 per cent to 166.51 lakh tonnes in the 2025-26 fiscal year, driven largely by a sharp jump in duty-free imports from Nepal. According to the Solvent Extractors' Association of India (SEA), the surge in duty-free imports of refined oils from Nepal substantially contributed to the increase in India's total edible oil imports during the year.

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. This represents a rise of 113 per cent from the previous fiscal year, when Nepal exported 3.45 lakh tonnes of edible oils to India. 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.

India remains heavily dependent on overseas supplies, with domestic production meeting only around 40 per cent of total edible oil requirements. The association attributed this to low oilseed yields, fragmented landholdings, limited irrigation, and a policy tilt toward wheat and rice cultivation, which have constrained domestic output growth.

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The association 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, saying that curbing excess use alongside raising domestic output would help lower import dependence and ease pressure on foreign exchange reserves.