Archive · 24 Sep 2026
India Cuts Edible Oil Import Duties to Ease Prices
India has lowered taxes on imported edible oils.
The change covers soybean, palm, and sunflower oils.
Some taxes on crude oils were reduced, and the tax on crude sunflower oil was removed.
The changes began on September 24, 2026.
Global edible oil prices rose about 25% over the past year, while domestic prices rose 12% to 15%.
The government hopes the cuts will reduce pressure on consumers before the festive season.
The industry association said the tax difference between crude and refined oils still supports Indian refineries.
It also said the change may reduce the incentive to bring refined oil into India from Nepal.
Lower import costs are expected to affect domestic prices gradually.
India reduced import duties on crude and refined soybean, palm, and sunflower oils effective September 24, 2026.
The basic customs duty on crude soybean and palm oil fell from 10% to 5%, while refined varieties fell from 32.5% to 27.5%.
The duty on crude sunflower oil was abolished, and refined sunflower oil duty was reduced to 22.5% from 32.5%.
The Solvent Extractors’ Association of India said the cuts could ease consumer prices while preserving incentives for domestic refining.
India’s edible oil import bill is estimated to rise 9% to Rs 1.75 lakh crore, as imports increased amid higher global prices and rupee depreciation.
- Who
- The Government of India and the Solvent Extractors’ Association of India, including President Sanjeev Asthana and Executive Director B V Mehta.
- What
- India reduced import duties on crude and refined soybean, palm, and sunflower oils.
- When
- The changes took effect on September 24, 2026.
- Where
- India; the measure may also affect refined edible oil imports from Nepal.
- Why
- To moderate consumer price pressure from rising global and domestic edible oil prices while maintaining incentives for domestic refining.
- 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%
- Price changes over the past year
- International prices rose approximately 25%; domestic prices rose approximately 12% to 15%
- Estimated current-year import bill
- Rs 1.75 lakh crore, up an estimated 9%
