“Edible oil imports rose 3% to 166.51 lakh tonnes in the 2025-26 fiscal year, driven largely by a sharp jump in duty-free imports from Nepal,” industry body Solvent Extractors' Association of India (SEA) said on Tuesday (May 19, 2026). Imports had stood at 161.82 lakh tonnes in the prior fiscal 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 2026, more than double the 3.45 lakh tonnes shipped in the previous fiscal, a rise of 113%.

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.

"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," SEA said in a statement.

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% of total edible oil requirements.

“Low oilseed yields, fragmented landholdings, limited irrigation and a policy tilt toward wheat and rice cultivation have constrained domestic output growth,” SEA said.

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.