Archive · 2 Jun 2025
India Slashes Edible Oil Import Duty, Impacting Businesses
Imagine India buys lots of cooking oil from other countries.
The government lowered the tax, called import duty, on this oil to make it cheaper.
This means the price of cooking oil in stores might go down, helping families.
Companies that make food using cooking oil, like Britannia and HUL, may also do better because their costs are lower.
But, companies that sell the cooking oil itself, like AWL and Patanjali, might not do as well.
India gets its cooking oil from places like Indonesia, Malaysia, and Ukraine.
India reduced import duty on crude edible oil from 20% to 10%.
The effective import duty, including surcharges, decreased from 27.5% to 16.5%.
The Social Welfare Surcharge on edible oils was reduced from 2.5% to 1.5%.
The move aims to lower consumer costs and help food processors.
Consumer stocks rose, while edible oil manufacturers' shares declined.
- Who
- The Indian government.
- What
- Import duty on crude edible oil was reduced.
- When
- June 2nd
- Where
- India.
- Why
- To reduce consumer costs.
Consumer Stocks
Edible Oil Manufacturers
Impact on Stock Prices
Consumer Stocks
Consumer stocks (Britannia, HUL, Godrej) gained up to 6%.
Edible Oil Manufacturers
Edible oil manufacturers (AWL Agri, Patanjali Foods) declined.
- Import Duty Reduction
- Crude edible oil duty cut from 20% to 10%
- Effective Import Duty Decrease
- From 27.5% to 16.5% (including surcharges)
- Surcharge Reduction
- Social Welfare Surcharge cut from 2.5% to 1.5%
- Expected Impact
- Lower consumer costs and boost edible oil imports
- Key Suppliers
- Indonesia, Malaysia, Ukraine, Argentina