Nepal’s Crude Soyabean Oil Imports Skyrocket 708%: What’s Driving the Surge?

Nepal witnessed an extraordinary jump in crude soyabean oil imports in the first month of 2025/26, with figures rising by 708% compared to the same period of the previous year. The country imported Rs. 10.80 billion worth of crude soyabean oil, making it the second-largest import commodity, holding a 7.6% share in total imports.

Experts attribute this surge to multiple factors. Firstly, soaring domestic demand for edible oil, especially refined soybean oil, has pushed refineries to import more crude soybean oil as raw material. Secondly, traders say favorable tariff structures and lower customs duties on crude oil compared to refined oil have incentivized bulk imports. Moreover, disruptions in global vegetable oil supply chains have diverted Nepal’s market dependence toward soyabean oil imports.

The rise is also linked to changing dietary preferences in urban households, where soybean oil is increasingly replacing traditional mustard or sunflower oils due to its pricing and availability. However, economists warn that such a massive surge could widen Nepal’s trade deficit, given that edible oil has now become a structural driver of imports rather than a seasonal one.