The edible-old business of AWL Agri Business Ltd (formerly Adani Wilmar) is under pressure as a steady rise in low-cost soybean oil imports from Nepal — routed through the South Asian Free Trade Area (SAFTA) agreement — has begun to erode its market share in key northern and eastern states. The company says the zero per cent duty advantage on packaged oils from Nepal, which are about ₹15 a litre cheaper than domestic brands, is hurting both its flagship labels Fortune and King’s, especially in Uttar Pradesh, Bihar, West Bengal, and Jharkhand.
According to Angshu Mallick, Executive Deputy Chairman, AWL Agri Business Ltd, oil imports from Nepal have grown sharply under SAFTA agreement, hurting domestic producers. “The oil coming from Nepal has a differential duty structure and is cheaper than the edible oil that companies import in general. That is hitting hard, and that’s why the imports have degrown to that extent,” he said. Imports from Nepal now account for about 12 per cent of India’s total edible oil imports, mainly soybean oil, Mallick told investors recently.
Almost 85–90 per cent of this oil arrives in small retail pouches and around 10 per cent in 15-kg tins, directly competing with Indian brands in Uttar Pradesh, Bihar, West Bengal, and Jharkhand. “Our two brands, King’s and Fortune, both have to compete with these cheaper brands, which come in at 0 per cent duty. On a cost-to-cost basis, they are about Rs15 a litre cheaper than Indian oils,” Mallick said. “Roadside eateries, hotels, and dhabashave started consuming Nepalese oil. As a result, our soybean oil market share has dropped by almost 2.5–3 per cent, and overall refined oil share by about 50 basis points,” he added.
Duty-free imports from Nepal
Under SAFTA, Nepal can export edible oils to India only after value addition and only in packaged form. “They export at zero per cent duty, while we pay 16.5 per cent on imports. So, Nepal has a clear pricing advantage,” he said. Proximity to markets such as UP, Bihar, Jharkhand, and Bengal further strengthens Nepal’s position. “From Haldia, our freight to UP is higher than from Nepal, so technically, Nepal has a lot of advantage,” Mallick added. He noted that around 60,000–65,000 tonnes of soyabean oil now come from Nepal every month, down from a peak of 90,000 tonnes when India raised import duty last year. “Even after duty reduction by 10 per cent in May, imports continue at a steady level,” he said.
AWL has been most affected in its strong markets — Delhi, Haryana, Punjab, UP, Bihar, Bengal, and Jharkhand — where its brands command over 50–60 per cent market share. “Being the largest player in these states, we have been hit the hardest,” Mallick admitted. Interestingly, Nepal does not produce soybean oil domestically. “They import degummed soybean oil from Argentina through Haldia port, refine it at Birganj, and bring it back to India. The border is very transparent, and the nearby Indian markets are directly affected,” he said.
Mallick added that while the trade has urged the government to regulate these imports, not much progress has been made. “As per the SAFTA agreement, there isn’t much the government can do, though we have been asking for channelising agencies to ensure quality and value addition. It was once agreed upon, but nothing much has moved,” he said.
Published on November 13, 2025
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