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Govt cuts duty on crude edible oils
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Monday, 28 September, 2026, 08 : 00 AM [IST]
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Our bureau, Mumbai
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The Government of India has reduced the Basic Customs Duty (BCD) on major imported crude edible oils to moderate domestic prices and provide relief to consumers amid rising international edible oil prices.
The BCD on crude sunflower oil has been reduced from 10% to nil, while the duty on crude soybean oil and crude palm oil has been cut from 10% to 5%. The Government has also reduced the applicable BCD on the corresponding refined edible oils, while retaining a 19.25% duty differential between crude and refined edible oils.
The duty rationalisation takes into account the rise in international edible oil prices and its impact on domestic landed costs and retail prices. Since import duties form a component of the landed cost of imported edible oils, changes in duty rates can influence domestic market prices.
The reduction in BCD on crude edible oils is expected to lower landed costs and facilitate the transmission of the benefit across the domestic supply chain. The move is aimed at easing the burden on consumers and containing food-price and broader inflationary pressures.
At the same time, the Government has retained the duty differential between crude and refined edible oils to encourage the utilisation of domestic refining capacity and discourage excessive imports of refined oils. The measure is also expected to support domestic refiners and value addition within the country.
The Government has advised edible oil associations and industry stakeholders to ensure that the benefit of the duty reduction is passed on to consumers. Industry players have been asked to immediately revise their Price to Distributors (PTD) and Maximum Retail Price (MRP) in line with the reduction in landed costs.
Edible oil associations have also been requested to advise their members to implement the corresponding price reductions without delay.
The Government said it will continue to monitor international edible oil markets and domestic prices and take appropriate measures, as required, to safeguard consumer interests while maintaining a balanced policy environment for farmers and the domestic edible oil industry.
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