Goods worth Rs 116.5 billion were exported from Nepal to various countries, with soybean, sunflower and palm oil worth Rs 52.8 billion going to India alone.
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Nepal has imported about Rs 59 billion worth of crude edible oil and exported Rs 52 billion worth of refined edible oil to India in the first five months of the current fiscal year. Nepal's edible oil trade is largely based on re-exports, according to data from the Customs Department.
In the first five months of the current fiscal year, Nepal has exported a total of Rs 116.5 billion worth of goods to various countries. Out of this, Nepal has exported Rs 52.8 billion worth of soybean oil, sunflower oil and palm oil to India alone.
In the first five months of the current fiscal year, Nepal has imported Rs 58.97 billion worth of crude palm, soybean and sunflower oil from third countries. Rs 1.95 billion worth of refined palm oil has been imported.
On May 30, 2025, the Indian government had reduced the customs duty on crude palm oil, soybean oil and sunflower oil with the aim of controlling retail prices and protecting domestic refiners. The basic customs duty on crude edible oil has been reduced from 20 percent to 10 percent. According to Indian media reports, the total import duty has come down from 27.5 percent to 16.5 percent. The duty on refined edible oil remains at 35.75 percent.
India had increased import duty on both crude and refined edible oils by 20 percent in September 2024 with the aim of protecting domestic oilseed farmers. The unexpected benefit of this decision reached Nepal. Therefore, on May 30, India reduced the duty on crude oil imports by 10 percent, while the duty on refined oil remained unchanged.
Experts had also suspected that India's tax revision would have a major impact on the export of refined edible oils from Nepal. Traders in India have to pay 16.5 percent duty when importing crude oil and 35.75 percent duty when importing refined oil.
Nepali traders have to pay 24.30 percent duty when importing crude oil from third countries and 18.65 percent duty when importing from SAARC countries. Crude oil is imported from third countries. There is no duty on importing crude oil in Nepal and exporting refined oil to India.
That is, there is a customs exemption when exporting to India under the South Asian Free Trade Area (SAFTA). In the first five months of the current fiscal year, the highest amount of crude soybean oil and sunflower oil was imported from Argentina. According to the department, crude soybean oil worth Rs 39.24 billion and crude sunflower oil worth Rs 5.21 billion were imported from Argentina. Crude soybean oil worth Rs 4.85 billion and Rs 1.47 billion and 1.47 billion and 1.39 He said that most edible oil exports are currently limited to minimal processing, and in most cases, imported liquid oil is repackaged and exported. “The increase in edible oil exports has only benefited a few business groups, and has not created real value addition or employment within Nepal,” he said. “Therefore, emphasis should be placed on exporting products produced in Nepal or at least ensure significant value addition when re-exported.” If soybeans are imported and used to produce and export oil, a large number of jobs will be created and even oilseeds can be exported abroad, says Sainju.
