The Centre has reduced customs duties on key edible oil imports amid rising food inflation. The move is aimed at lowering landed costs and providing relief to consumers.
Highlights
- Government has cut import duties on crude and refined palm, soybean and sunflower oils.
- The new duty rates will be effective from September 24.
- Basic customs duty on crude soybean and palm oil has been reduced from 10% to 5%.
- Duty on refined soybean and palm oil has been cut from 32.5% to 27.5%.
- Basic customs duty on crude sunflower oil has been abolished, from 10% earlier.
New Delhi: The Centre has reduced import duties on crude and refined palm, soybean and sunflower oils in an effort to contain edible oil prices and provide relief to consumers amid rising food inflation.
According to a Finance Ministry notification cited in the report, the revised duty structure will come into effect from September 24.
The basic customs duty (BCD) on crude soybean oil and crude palm oil has been reduced from 10% to 5%. For refined soybean and palm oil, the duty has been lowered from 32.5% to 27.5%.
The government has provided a bigger reduction for sunflower oil. The BCD on crude sunflower oil has been abolished from the earlier 10%, while the import duty on refined sunflower oil has been reduced from 32.5% to 22.5%.
The move comes as edible oil inflation has remained elevated. The All India Consumer Food Price Index inflation stood at 5.95% in August, compared with 5.52% in July. Retail inflation in refined oil, one of the most commonly consumed edible oils, rose from 7.62% in March to 10.25% in April and reached 14.24% in August, according to the report.
Industry representatives said lower import duties should reduce the landed cost of imported edible oils and could provide some relief in consumer prices. However, the extent of the reduction will also depend on international commodity prices, freight costs, exchange-rate movements, domestic availability and inventory levels.
The duty cut comes ahead of the festive season, when demand for edible oils generally rises due to higher household consumption and increased requirements from sweets, snacks, food-service and hospitality businesses.
India’s edible oil imports, meanwhile, increased 4.56% during the first 10 months of the 2025-26 oil year, driven by higher imports of palm and soybean oil.
