Nepal’s Rs146 billion edible oil exports to India under scrutiny over tariff advantage

Experts say the export surge is driven by tariff arbitrage rather than genuine domestic value addition, while Indian edible oil refiners urge New Delhi to curb duty-free imports from Nepal.

Nepal exported 704,844 tonnes of refined soyabean, palm and sunflower oil worth Rs146 billion to India in the last fiscal year, even though it produces only a negligible amount of the raw materials. Experts say the trade is a classic example of a rent-seeking business that exploits tariff differentials rather than generating genuine domestic value.