India’s Edible Oil Crisis: IVPA Summit Demands Action on Nepal Imports and Standard Packs

New Delhi, July 26, 2025 – As India grapples with volatile cooking oil prices and farmer distress, the nation’s top industry body has sounded an urgent alarm. At its landmark Golden Jubilee Global Roundtable, the Indian Vegetable Oil Producers’ Association (IVPA) demanded immediate government intervention to curb duty-free edible oil imports flooding through Nepal and reintroduce standardized packaging – moves critical for protecting millions of farmers and consumers alike.

India’s Edible Oil Sector at a Crossroads

The two-day IVPA Global Roundtable 4.0, themed “Navigating Tectonic Global Shifts,” brought together policymakers, global traders, and agricultural scientists. Central to the crisis, emphasized IVPA President Sudhakar Desai, is the unchecked flow of refined vegetable oils from Nepal into India’s northern and northeastern markets. Under the South Asian Free Trade Area (SAFTA), Nepal enjoys zero-duty access, allowing refined palm and soybean oil to undercut domestic producers by 10-15%.

“This isn’t just about competition; it’s about survival,” stressed Desai. “These imports suppress local oilseed prices, making farming unviable, while our processing plants operate at just 40-50% capacity.” IVPA proposed canalizing all such imports through government agencies like NAFED to ensure transparency and fair pricing. Industry data reveals that over 300,000 metric tons of refined oil entered India via Nepal in 2024 – a 25% YoY surge that devastated mustard and soybean farmers in Punjab, Haryana, and Bihar.

Simultaneously, IVPA urged the reinstatement of mandatory standardized pack sizes (e.g., 1L, 5L, 15L, and 30L) for edible oils. The current “plethora of pack options,” from 900ml to 4.5L, confuses consumers and enables price manipulation. “Uniform packaging ensures price comparability and protects households from hidden inflation,” explained Vice President Bhavna Shah.

Policy Shifts and Global Headwinds

In a special message, Prime Minister Narendra Modi commended IVPA’s 50-year role in advancing “self-reliance” in edible oils – a vision now tested by geopolitical and climate pressures. Expert panels dissected Black Sea sunflower oil volatility, rising biofuel mandates diverting oils, and climate impacts on global oilseed yields.

Key market forecasts emerged:

• Palm oil prices will hold steady but remain discounted versus soybean oil.
• Mustard oil’s recent price spike should ease as the government releases buffer stocks.
• Sunflower oil costs may dip as Ukraine/Russia harvests rebound.

“India’s path hinges on boosting domestic oilseed production,” asserted Secretary General S.P. Kamrah. “We need sustained MSP incentives for farmers and investments in high-yield seeds to cut our 55-60% import dependence.” The Ministry of Agriculture’s Oilseeds Dashboard shows mustard acreage rose 7% this year – a start, but not enough.

India’s edible oil crisis demands urgent policy coherence – stopping leaky borders and misleading packaging while empowering farmers. As global supply chains fragment, the IVPA’s call for self-reliance isn’t just economic; it’s existential. Support local brands, demand transparent pricing, and hold policymakers accountable. The stability of your kitchen depends on it.

Must Know

Why are Nepal’s edible oil imports hurting India?
Nepal leverages SAFTA’s zero-duty access to export refined palm/soybean oil to India. This floods local markets, suppresses oilseed prices for Indian farmers, and idles domestic refining capacity. IVPA estimates ₹2,000 crore in annual revenue losses.

How would standardized pack sizes help consumers?
Uniform volumes (1L, 5L, etc.) enable easy price comparison, prevent quantity manipulation, and reduce confusion. Currently, varying pack sizes obscure true costs, hurting budget-conscious households.

What was Prime Minister Modi’s message to IVPA?
The PM lauded IVPA’s 50-year contribution to food security and oilseed farming, endorsing its mission for “self-reliance” amid global supply chain risks.

Will mustard oil prices fall soon?
IVPA predicts moderation as the government releases buffer stocks. However, long-term stability requires higher domestic mustard seed production and processing.

How does climate change affect edible oil costs?
Extreme weather disrupts global oilseed harvests (e.g., Malaysian palm, Argentine soy). This volatility spikes import costs for India, which relies heavily on overseas shipments.