Processed Edible Oil Exporters See Sharp Income Growth on India-Bound Shipments

Nepal’s processed edible oil industry recorded a sharp rise in income in the last fiscal year as exports to India surged, driven by favourable trade policies and growing demand.

Financial statements published by credit rating agencies show that the operating income of three major edible oil exporters—Narayani Oil Refinery Industries Pvt Ltd, Ganpati Vanaspati Limited and Bagmati Oil Industries—rose significantly in fiscal year 2024/25. The growth was largely fuelled by a sharp increase in exports of soybean and sunflower oil.

During the review year, Nepal exported goods worth Rs 277 billion, of which soybean and sunflower oil accounted for Rs 119 billion, or 43 percent of total exports. India’s higher customs duties on processed edible oil imported from other countries, combined with zero-duty access for Nepali exports under the South Asian Free Trade Area (SAFTA), boosted shipments from Nepal.

According to disclosures by three rating agencies—ICRA Nepal, CARE Ratings Nepal and Infomerics Credit Rating—incomes of the oil industries rose sharply due to favourable policies, improved export conditions and a marginal decline in costs of raw material. The three companies sought credit ratings primarily to access bank loan facilities.

While the companies have benefited from export-led growth alongside domestic sales, analysts caution that the sustainability of such earnings remains uncertain due to heavy reliance on external policy decisions.

Edible oil dominates exports

Processed edible oil continues to dominate Nepal’s export basket in the current fiscal year as well. According to data released by the Department of Customs, Nepal exported goods worth over Rs 142 billion in the first six months of 2025/26, of which soybean, sunflower and palm oil accounted for Rs 64 billion. Soybean oil led the exports, with shipments worth Rs 56 billion during the period.

Industry analysts note that the concentration of exports in edible oil poses risks, as the sector is highly dependent on India’s policy environment. Past policy shifts by the Indian government have at times resulted in sharp declines in earnings for Nepali oil producers.

Narayani Oil Refinery Industries

CARE Ratings Nepal reported that Narayani Oil Refinery Industries recorded a 123 percent year-on-year increase in operating income in fiscal year 2024/25. The company, which has an annual production capacity of 128,500 metric tonnes, generated operating income of Rs 10.21 billion during the year.

Established in 1989, the Bara-based company processes and refines edible oils, including soybean, sunflower, mustard and palm oil. It sells products in the domestic market under brands such as Trishakti, Smile, Arogya, Shri, Nilmani, Kundan and Nilkamal. Analysts attribute the income surge mainly to India’s favourable policy regime and SAFTA provisions. The company has sought credit ratings for loan facilities worth Rs 5.17 billion.

Ganpati Vanaspati Limited

Ganpati Vanaspati Limited also recorded a sharp rise in income, according to Infomerics Credit Rating. The company generated operating income of Rs 8.25 billion in fiscal year 2024/25, compared to Rs 1.24 billion a year earlier.

Founded in 1998 as a private company, Ganpati Vanaspati was converted into a public company in 2023. The Bara-based company processes and produces vanaspati ghee and edible oils, with an installed annual capacity of 120,000 metric tonnes. It markets its products under brands including Safari, Safari Health, Chakkara and Ramdev. The company operates under the Lucky Group.

Bagmati Oil Industries

Bagmati Oil Industries, a producer of soybean and sunflower oil, also reported strong income growth. ICRA Nepal stated that the company’s operating income rose by 84 percent in fiscal year 2024/25, reaching Rs 5.03 billion, up from Rs 2.73 billion a year earlier.

Exports contributed 45 percent of the company’s total income, supported by slightly lower procurement costs for raw material. Established in 2008 as a partnership firm, Bagmati Oil Industries produces edible oils under the ‘Cello’ brand and operates from Morang district. The company is part of the Bagmati Group, with Saket Rathi holding a 60 percent stake, Anil Kumar Agrawal 34 percent, and Manoj Kumar Tapadia 6 percent.