The edible oil import duty cut announced by the Government of India is aimed at reducing the landed cost of major imported crude edible oils and easing pressure on domestic prices. The decision was announced on September 24, 2026, as international edible oil prices have risen sharply.
Under the revised duty structure, the Basic Customs Duty (BCD) on crude sunflower oil has been reduced from 10% to nil. The BCD on crude soybean oil and crude palm oil has been cut from 10% to 5%.
Duty cuts target domestic edible oil prices
The government has also reduced the applicable BCD on the corresponding refined edible oils. At the same time, it has retained a 19.25% import duty differential between crude and refined edible oils.
According to the government, import duties form part of the landed cost of imported edible oils and can affect domestic market and retail prices. The lower duty on crude oils is expected to reduce their landed cost and allow the benefit to move through the domestic supply chain.
The government said the duty structure has been maintained in a way that supports the use of domestic refining capacity and discourages excessive imports of refined edible oils. It also said the approach is intended to provide domestic refiners with a more level playing field while supporting value addition within India.
Industry asked to pass on benefit to consumers
The government has also issued an advisory to edible oil associations and industry stakeholders following the duty reduction. Industry participants have been asked to revise their Price to Distributors (PTD) and Maximum Retail Price (MRP) in line with the lower 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 monitoring international edible oil markets and domestic prices and take appropriate measures when necessary, while maintaining a balanced policy environment for consumers, farmers and the domestic edible oil industry.
Q1. What is the edible oil import duty cut announced by the government?
The government has reduced BCD on crude sunflower oil to nil and cut BCD on crude soybean and crude palm oil to 5%.
Q2. Why has the government reduced edible oil import duty?
The reduction is intended to lower landed costs of imported crude edible oils and help moderate domestic edible oil prices.
Q3. What is the new BCD on crude sunflower oil?
The BCD on crude sunflower oil has been reduced from 10% to nil.
Q4. What is the new duty on crude soybean and palm oil?
The BCD on both crude soybean oil and crude palm oil has been reduced from 10% to 5%.
Q5. What has the government asked edible oil companies to do?
Industry stakeholders have been asked to revise their Price to Distributors and Maximum Retail Prices in line with the reduction in landed costs.
