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India Cuts Edible Oil Duties Ahead of Festive Season
India has lowered taxes charged on imported edible oils.
The change covers soybean, palm, and sunflower oils.
Some crude oil duties were cut, and the duty on crude sunflower oil was removed.
The government made the change effective on September 24, 2026.
Edible oil prices in India rose by 12% to 15% over the previous year.
International prices rose by about 25% during the same period.
The cuts are intended to help reduce pressure on consumers, especially before the festive season.
The industry association said the policy also keeps some advantage for domestic oil refiners.
It expects lower import costs to gradually affect prices in Indian markets.
India reduced import duties on several crude and refined edible oils effective September 24, 2026.
The basic customs duty on crude soybean and palm oil fell from 10% to 5%.
The duty on refined soybean and palm oil was reduced from 32.5% to 27.5%.
The basic customs duty on crude sunflower oil was eliminated, while refined sunflower oil duty fell to 22.5%.
The Solvent Extractors’ Association of India said the cuts could ease consumer prices while preserving domestic refining incentives.
- Who
- The Government of India and the Solvent Extractors’ Association of India, including SEA President Sanjeev Asthana and Executive Director BV Mehta.
- What
- India reduced import duties on crude and refined soybean, palm, and sunflower oils.
- Where
- India, with possible effects on edible oil imports from Nepal.
- When
- The changes took effect on September 24, 2026.
- Why
- To ease the impact of rising edible oil and food prices while retaining incentives for domestic refining.
Key facts
- Effective date
- September 24, 2026
- Crude soybean and palm oil duty
- Reduced from 10% to 5%
- Refined soybean and palm oil duty
- Reduced from 32.5% to 27.5%
- Crude sunflower oil duty
- Abolished from its previous level of 10%
- Refined sunflower oil duty
- Reduced from 32.5% to 22.5%
- Domestic edible oil price increase
- Approximately 12% to 15% over the past year
- International edible oil price increase
- Approximately 25% over the past year
Quotes
Sanjeev Asthana
President of the Solvent Extractors’ Association of India
“Without any change to the bilateral trade agreement between India and Nepal, a lower domestic import duty could reduce the arbitrage advantage associated with such imports from Nepal and thereby moderate the incentive for large scale inflows.”
thehindubusinessline.com
“It is, therefore, a balanced approach addressing both consumer and industry considerations.”
thehindubusinessline.com
Sources
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