India’s edible oil imports from Nepal: Policy implications of current tariffs and free trade agreements

India’s import demand for edible oils has been significant over the past decade, with imports averaging $11.6 billion annually. In 2021, prior to the Russia-Ukraine conflict, India imported a staggering $17.1 billion of edible oils (Figure 1), dominated by palm oil ($9.6 billion), soybean oil ($4.8 billion), and sunflower/safflower oils ($2.4 billion). Interestingly, these three oils accounted for an impressive 65% share of India’s total merchandise imports from Nepal—a country not generally known for its edible oils production—in 2021, amounting to an export value of $865 million, approximately 9% of India’s edible oil imports, fifth overall among major suppliers.