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India, the world’s biggest vegetable oils importer, meets nearly two-thirds of its domestic vegetable oil demand through imports.
Shoppers purchase packets of vegetable oil at a supermarket in Mumbai. (IMAGE: REUTERS FILE)
The Centre has cut the basic customs duty (BCD) on crude soybean oil and crude palm oil from 10% to 5%, while the duty on refined soybean oil and refined palm oil has been reduced from 32.5% to 27.5%, in a move aimed at easing edible oil prices ahead of the festive season.
The BCD on crude sunflower oil has been reduced from 10% to Nil, while that on refined sunflower oil has been cut from 32.5% to 22.5%. The changes will come into effect from September 24, according to a Finance Ministry notification issued on Wednesday.
The duty cuts come as vegetable oil prices in India have risen by nearly 20% over the past year. Demand for edible oils typically rises during the September-November festive period, when households consume greater quantities of sweets, snacks and fried foods.
India, the world’s biggest vegetable oils importer, meets nearly two-thirds of its domestic vegetable oil demand through imports. The country’s major imports include palm oil, soybean oil and sunflower oil, sourced mainly from Malaysia, Indonesia, Argentina, Russia and Ukraine.
The increase in prices has been linked to supply disruptions arising from the Russia-Ukraine war as well as extreme weather events associated with El Niño and global warming, according to Reuters.
The government had been considering a reduction in import duties as a way to shield consumers from higher edible oil prices while also taking into account the interests of domestic oilseed farmers, Reuters had reported earlier on Wednesday, citing two government and two industry sources.
The latest notification, however, cuts the BCD across crude and refined soybean, palm and sunflower oils. It amends the Centre’s earlier customs duty notification issued in October 2025.
A senior industry official had told Reuters that a 5-percentage-point reduction in the basic import duty could help keep domestic soybean prices above government-set support levels and support oilseed farmers. The official also cautioned that stronger Indian demand could push up prices in exporting countries.
India had halved the basic import tax on crude edible oils to 10% in May 2025. The effective import duty on crude palm oil, crude soybean oil and crude sunflower oil was consequently 16.5% after accounting for the Agriculture Infrastructure and Development Cess and Social Welfare Surcharge, Reuters reported.
The duty reduction could also have implications for global edible oil markets, with higher Indian demand potentially supporting Malaysian palm oil and US soybean oil futures, analysts told Reuters.
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Ask News18The Centre reduced the basic customs duty on crude soybean oil and crude palm oil from 10% to 5%, and cut the duty on crude sunflower oil from 10% to nil. Additionally, the duty on refined soybean oil and refined palm oil was lowered from 32.5% to 27.5%, while refined sunflower oil was reduced from 32.5% to 22.5%.
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Shankhyaneel Sarkar is a chief sub editor at News18. He covers international affairs, where he focuses on breaking news to in-depth analyses. He has over seven years of experience during which he has …Read More
September 23, 2026, 10:13 PM IST
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