Archive · 19 Jun 2025
India's Edible Oil Duty Cut Negated by Global Price Hikes
India cut taxes on imported cooking oils to lower prices, but global prices went up, so the cut didn't help much.
The cost of these oils went up after the tax cut.
Retail prices of cooking oils have barely changed.
Experts say that while the percentage of inflation seems high, the actual prices may not be unusually high compared to the cost of the ingredients used to make these oils.
India's import duty cut on edible oils is offset by rising global prices.
Global crude soybean oil prices rose to $1,062/tonne on June 18, up from $1,001/tonne on May 30.
Crude palm oil prices also increased to $1,030/tonne on June 18, from $995/tonne on May 30.
Retail inflation for oils and fats rose by 17.91% in May 2025.
Core inflation in India is rising, influenced by global economic factors.
- Who
- Experts, Industry Sources, Consumer Affairs Ministry, CRISIL
- What
- Impact of import duty cut on edible oils and rising inflation.
- When
- May 30 (duty cut announcement), June 18 (price check)
- Where
- India, Global Markets
- Why
- To stabilize domestic prices and address inflation concerns.
Government/Industry View
Market Forces
Effectiveness of Duty Cut
Government/Industry View
Duty cut intended to stabilize prices.
Market Forces
Rising global prices are negating the impact of the duty cut.
- Duty Cut Date
- May 30
- Soybean Oil Price (May 30)
- $1,001/tonne
- Soybean Oil Price (June 18)
- $1,062/tonne
- Palm Oil Price (May 30)
- $995/tonne
- Palm Oil Price (June 18)
- $1,030/tonne
- Oils & Fats Inflation (May 2025)
- 17.91%
- Headline Inflation (May 2025)
- 2.8%
