October 17: After India lifted the ban imposed on import of palm oil into the country, Nepal has witnessed a surge in export of refined palm oil to India. Nepal has exported refined palm oil worth Rs 7.56 billion within a period of just two months from mid-July to mid-September in the current fiscal year.
Data provided by the Department of Customs shows that 4.34 million liters of palm oil have been exported to India within the review period.
India had imposed a ban on import of palm oil since June 2020, which was then lifted by the Directorate General of Foreign Trade after a year effective from 1st July 2021.
In just one month (mid-July to mid-August), refined Palm oil worth Rs 2.15 billion was exported. Meanwhile, palm oil worth Rs 5.35 billion was exported from mid-August to mid-September.
In the fiscal year 2076/77, refined palm oil was the top export product of Nepal. In the same year, palm oil worth Rs 18.31 billion was exported from Nepal to India. However, exports of palm oil declined by 100 percent last year after the Indian government imposed the ban.
According to the Trade and Export Promotion Center, palm oil worth Rs 545,000 was exported last year.
Nepali entrepreneurs import crude palm oil from Malaysia, Indonesia and other countries. The crude oil is then processed and exported to India. Palm oil is consumed in Nepal as well. Entrepreneurs say that importing crude palm oil, processing it and selling it adds up to 30 percent value to its original value.
