Kathmandu, June 3 -- In a significant policy shift aimed at curbing retail prices and protecting domestic refiners, the Indian government has halved the customs duty on crude palm oil, soybean oil, and sunflower oil.

Experts say the move will drastically cut into Nepal's booming exports of refined edible oils to India, which had surged by taking advantage of duty-free provisions under the South Asia Free Trade Area (SAFTA), a trade agreement among SAARC member states. The revised tariffs have tilted the competitive edge back in favour of Indian refiners.

Effective last Friday, the basic customs duty on these crude oils was lowered to 10 percent from the previous 20 percent. Including the Agriculture Infrastructure and Development Cess, ...