India, Feb. 12 -- Import of cheaper, duty-free edible oil is causing losses to oilseed farmers while also threatening the survival of domestic processors, and the edible oil industry has urged the government to regulate the influx of cheap refined cooking oil, especially from Nepal.

Edible oil industry body Solvent Extractors' Association of India (SEA) pointed out in a letter to Prime Minister Narendra Modi on February 10 as to how duty-free imports under SAFTA (South Asia Free Trade Area) was driving a "massive influx" of refined soybean oil and palm oil from Nepal and other South Asian countries.

SAFTA is an agreement between South Asian countries to promote economic cooperation and trade. Due to a duty advantage under it, Nepalese r...