June 24, Kathmandu – During the first 11 months of the current fiscal year, Nepal has witnessed a significant increase in edible oil imports. According to data from mid-July to mid-May, Nepal imported approximately NPR 15.7 billion worth of nearly 955 million liters of crude and processed edible oils and fats from various countries. In comparison, during the same period last fiscal year (2081/82), the import value stood at over NPR 13.5 billion.
Due to the minimal contribution of domestic production, billions of rupees are spent annually on edible oil imports. Among all imported oils, crude soybean oil accounts for the largest share. Total crude soybean oil imports reached 726.5 million liters, valued at NPR 11.96 billion. For context, last year during the same period, 633 million liters of soybean oil were imported, worth NPR 9.57 billion.
Crude sunflower oil ranks second, with total imports of 113.8 million liters valued at NPR 1.91 billion, down from 180.3 million liters valued at NPR 2.68 billion in the previous year. Palm oil ranks third; 81.6 million liters of crude palm oil have been imported, costing NPR 1.3 billion. Additionally, refined palm oil and palm olein imports of 32.1 million liters, valued at NPR 546 million, have been recorded. Comparatively, last year crude palm oil imports were 38.2 million liters worth NPR 548 million, and refined palm oil imports totaled 27.7 million liters valued at NPR 417 million.
Which countries supply Nepal’s edible oil imports? In the current fiscal year, imports of crude soybean oil worth more than NPR 11.9 billion indicate a dominant volume from South American countries. Argentina tops the list with 549.7 million liters of soybean oil imports valued at NPR 9.01 billion. Brazil follows with 93.9 million liters worth NPR 1.55 billion. Paraguay supplied 9.8 million liters valued at NPR 147.9 million, and neighboring China accounted for 51.1 million liters of soybean oil imports worth NPR 894.4 million. Thailand and Ukraine contributed 14.3 million liters and 7.7 million liters respectively, valued at NPR 236 million and NPR 125 million.
Argentina also leads in sunflower oil imports, supplying 90.3 million liters valued at NPR 1.48 billion. Despite the ongoing conflict, Ukraine supplied 23.5 million liters valued at NPR 432 million. Refined sunflower oil imports have come from Malaysia, India, and Turkey, amounting to NPR 1.37 billion, NPR 308 million, and NPR 206 million, respectively.
Palm oil imports are largely dominated by Southeast Asian nations Indonesia and Malaysia. Indonesia supplied 55.4 million liters of crude palm oil worth NPR 864 million, plus 8 million liters of refined palm olein worth NPR 133 million. Malaysia contributed 13 million liters of crude palm oil valued at NPR 228 million and 16 million liters of refined palm olein worth NPR 272 million. Thailand supplied 11.6 million liters of crude palm oil valued at NPR 185 million.
Traditionally, mustard and rapeseed oils preferred in Nepali kitchens are mainly imported from India, totaling 71,698 liters worth NPR 1.35 million. China supplied a mere 300 liters of mustard oil. Various other oils and industrial fats are also imported in notable quantities. Vegetable fats worth NPR 292 million were imported from Malaysia (903 thousand liters) and India (412 thousand liters). Coconut oil (both crude and refined) imports from India amounted to 209 thousand liters valued at NPR 126 million, with Indonesia supplying 50 thousand liters worth NPR 18.6 million. Cottonseed oil is entirely imported from India, amounting to 350 thousand liters valued at approximately NPR 80 million.
Premium olive oil imports came from Spain (66 thousand liters valued at NPR 52.6 million), Italy, and Turkey. Sesame oil imports totaled 35 thousand liters from China (NPR 16.8 million) and 30 thousand liters from India (NPR 8.3 million).
How much revenue was collected from imports? Over the 11 months, the government collected a total of NPR 1.138 billion in taxes from edible oil and fat imports. Crude and refined soybean oil imports yielded NPR 524.5 million in tax revenue, mostly from crude soybean oil. Sunflower oil imports generated NPR 315.2 million in government revenue, with NPR 309.2 million from crude sunflower oil. Palm oil and its derivatives accounted for NPR 269.5 million in tax collections. Other oils, including vegetable fats, olive oil, coconut oil, and mustard oil, contributed approximately NPR 30.6 million in taxes.
Processed edible oil export and earnings from India In the first 11 months, Nepal earned currency equivalent to NPR 13.106 billion by exporting processed edible oils and vegetable fats of various types. Volume-wise, the exports included over 530.8 million liters of processed soybean oil and approximately 117.5 million liters of other oils and fats. India absorbed 99.9% of Nepal’s exported edible oils.
The largest export share is processed soybean oil, with 530.8 million liters valued at NPR 11.318 billion—accounting for roughly 86% of total edible oil export revenue. All processed soybean oil exports went exclusively to India.
The second-largest export segment is processed sunflower oil, with 65.2 million liters worth NPR 799.3 million entirely exported to India. Palm oil is the third major export. Nepal imports crude palm oil and processes it into palm oil, olein, and stearin for export. During this period, 3.2 million liters of palm olein generated NPR 614 million and 6.27 million liters of processed palm oil yielded NPR 169 million in export earnings. Including 25 thousand liters of palm stearin, a total of 36.5 million liters of palm oil products were exported, earning NPR 731.4 million, all exclusively to India.
Mustard, canola, and rapeseed oils were also exported, totaling 7.7 million liters valued at NPR 1.542 billion. Some exports went beyond India: Bangladesh imported 39,676 liters worth NPR 128.3 million. Small samples of mustard/canola oil were sent to Australia (312 liters), the USA (538 liters), and the UK (200 liters).
Nepal earned NPR 939.7 million by exporting industrial-use hydrogenated vegetable fats, totaling 3.013 million liters, mostly exported to India, with only 25 liters going to the UK. Additional revenue also came from fixed vegetable fats and other oil byproducts.
These developments indicate a growing industry in Nepal that imports crude oil from South America and Southeast Asia, processes it domestically, and exports the refined products mainly to India. Last fiscal year (2081/82), edible oil exports for the same 11-month period reached NPR 10.768 billion, including NPR 9.352 billion in processed soybean oil, NPR 199 million in palm oil, and NPR 1.133 billion in sunflower oil. Other oils contributed roughly NPR 83 million.
