India cuts edible oil import duties to curb inflation

The Indian government has reduced basic customs duties (BCD) on several crude and refined edible oils, effective September 24, to curb food inflation and provide relief to consumers ahead of the festive season. Under the new structure, the BCD on crude sunflower oil has been slashed from 10% to nil, while duties on crude soybean and palm oils have dropped from 10% to 5%. For refined oils, the duty on soybean and palm oils was reduced from 32.5% to 27.5%, and refined sunflower oil from 32.5% to 22.5%.

The Ministry of Consumer Affairs, Foods, and Public Distribution has directed edible oil companies and industry stakeholders to pass these savings directly to consumers by revising distributor prices and Maximum Retail Prices (MRPs). To protect the domestic refining sector, the government maintained a 19.25% duty differential between crude and refined oils.

This policy intervention comes amid rising international commodity prices and volatility in the crude oil market. While intended to lower domestic cooking oil costs, industry experts note that the impact will depend on global supply conditions, freight costs, and exchange rate movements. The Indian Vegetable Oil Producers’ Association (IVPA) expects the steeper cut on sunflower oil to make it more affordable, particularly in South India.