Archive · 24 Sep 2026
India Cuts Edible Oil Duties Ahead of Festive Season
India has lowered taxes on several cooking oils brought in from other countries.
The tax on crude soybean and palm oil is now 5% instead of 10%.
The tax on crude sunflower oil has been reduced to zero.
Taxes on refined soybean, palm and sunflower oils were lowered too.
The changes begin on Thursday, September 24.
The government hopes this will make cooking oil cheaper before festivals.
India buys nearly 60% of the edible oil it uses from other countries.
However, shoppers may not see the full savings if global prices, shipping costs or the rupee continue to push prices higher.
More Indian buying could also affect international oil prices.
The government cut the basic duty on crude soybean and palm oil to 5% from 10%.
The basic duty on crude sunflower oil was eliminated, while duties on refined oils were also reduced.
The changes take effect Thursday, September 24, before the September-November festive season.
India imports nearly 60% of its edible oil, exposing domestic prices to global costs, freight and currency movements.
Lower duties may reduce consumer prices, but the final benefit depends on supply-chain pass-through and import demand.
- Who
- The Government of India, through the Finance Ministry’s Department of Revenue, announced the duty reductions; refiners, traders and industry representatives commented on their possible effects.
- What
- Basic customs duties on crude and refined soybean, palm and sunflower oils were reduced, including a zero basic duty on crude sunflower oil.
- When
- The notification was issued on Wednesday, and the revised duties take effect Thursday, September 24, ahead of festivals from September to November.
- Where
- India, including edible oil imports arriving through ports such as Mumbai.
- Why
- To lower import costs and potentially ease cooking-oil prices and household pressure during the festive season.
Expected Consumer Relief
Uncertain Price Impact
Effect on retail prices
Expected Consumer Relief
The government and the Indian Vegetable Oil Producers’ Association said lower duties should reduce landed import costs and could provide relief to consumers.
Uncertain Price Impact
Retail prices may not fall immediately or by the full amount because savings must pass through refiners, importers, sellers and the wider supply chain.
Festive-season supply
Expected Consumer Relief
Refiners are expected to increase imports to meet higher demand from households, sweets, snacks, food-service and hotel, restaurant and catering businesses.
Uncertain Price Impact
The timing and size of the benefit remain uncertain, while stronger Indian buying could support international palm and soybean oil prices.
Pressure on oil prices
Expected Consumer Relief
Reducing import duties directly lowers one component of domestic cooking-oil costs while prices are elevated ahead of the festivals.
Uncertain Price Impact
Higher global prices, freight and insurance costs, rupee depreciation and diversion of cooking oils to biofuels may continue to keep prices high.
- Crude soybean and palm duty
- Basic customs duty reduced to 5% from 10%; total duty falls to 11% from 16.5%.
- Crude sunflower duty
- Basic customs duty reduced to zero from 10%; total duty falls to 5.5% from 16.5%.
- Refined oil duties
- Soybean and palm oil duties reduced to 27.5% from 32.5%; sunflower oil duty reduced to 22.5% from 32.5%.
- India’s import dependence
- India imports nearly 60% of its edible oil consumption, with some reports describing the share as nearly two-thirds.
- Annual demand and production
- Edible oil demand is about 26 million tonnes annually, while domestic production covers up to 40%.
- Retail prices on September 23
- Soybean oil was ₹166.87 per kg, sunflower oil ₹194.26 per kg and palm oil ₹153.89 per kg.
- July imports
- Edible oil imports rose to 1.48 million tonnes in July from 1.1 million tonnes in June, an increase of about 35%.
Sources
India cuts edible oil import duty ahead of festivals: Will it bring relief after prices rose 20% in a year?
Centre cuts import duty on edible oils to curb price rise
Govt slashes duty on edible oils to curb price rise ahead of festive season
Govt slashes import duties on edible oils to curb prices