Kathmandu- Nepal's edible oil manufacturing sector is on the brink of disruption following India's decision to reduce the basic customs duty on crude edible oil.

This policy adjustment is projected to negatively impact Nepal's exports of refined edible oils, notably soybean, sunflower, and palm oil, to India, while boosting Indian oil processing companies.

During the first ten months of the current fiscal year, Nepal's total exports to India amounted to Rs 25 billion, with edible oils constituting nearly half of this value.Nepal exported Rs 78.75 billion worth of soybean oil, Rs 10.9 billion worth of sunflower oil, and Rs 1 billion of palm oil, totaling Rs 89.84 billion in refined edible oil exports to India during the review period.

The recent reduction by the Indian government of the basic customs duty on edible oil from 20 percent to 10 percent has led to a decrease in the retail prices of cooking oils within India.

On the other hand, this measure is anticipated to impact the demand for Nepali refined cooking oils in India , posing a significant risk to Nepal's domestic industries, which are substantially reliant on the Indian market.