Nepal’s Rs146 billion edible oil exports to India under scrutiny over tariff advantage
Summary
Nepal exported refined edible oils worth Rs146 billion to India last fiscal year, leveraging tariff advantages under preferential trade agreements despite limited domestic raw material production. This has raised concerns in both countries about the economic impact and fairness of the trade.
Key Points
- Nepal exported 704,844 tonnes of refined edible oils worth Rs146 billion to India in the last fiscal year despite negligible domestic raw material production.
- The trade exploits tariff differentials under SAFTA and Nepal-India Trade Treaty, with Nepal benefiting from zero or reduced duties compared to Indian refiners.
- Indian vegetable oil producers argue Nepal's exports have low value addition and disadvantage domestic industry due to duty-free imports.
- Experts caution that the current trade yields limited economic benefits for Nepal and recommend focusing on exports with genuine domestic production.
