15 hrs ago
India Orders Edible Oil Firms to Pass Duty Cuts On
The government lowered taxes on several imported cooking oils.
It wants companies to use these savings to reduce prices for shoppers.
The cuts apply to sunflower, soybean, and palm oils.
Companies were told to update their distributor prices and maximum retail prices quickly.
The government hopes this will make cooking oil cheaper and help reduce inflation.
It is keeping a difference between taxes on crude and refined oil to support local refineries.
India imports palm oil from Malaysia and Indonesia, and soybean oil from Argentina and Brazil.
Officials said they will continue watching international and domestic oil prices.
The Food Ministry asked edible oil companies to pass the full benefit of lower import duties to consumers.
The basic customs duty on crude sunflower oil fell from 10% to zero, while refined sunflower oil duty fell from 32.5% to 22.5%.
Duties on crude soybean and palm oils were cut from 10% to 5%, and duties on refined versions from 32.5% to 27.5%.
Companies were told to promptly revise distributor prices and maximum retail prices to reflect lower landed costs.
India’s edible oil import bill is estimated to rise 9% to Rs 1.75 lakh crore during the marketing year ending October.
- Who
- India’s Food Ministry, edible oil companies, industry associations, and consumers.
- What
- The government reduced import duties on crude and refined sunflower, soybean, and palm oils and ordered companies to pass the savings to consumers.
- Where
- India.
- When
- The duty cuts were announced on Wednesday, and the ministry’s advisory was issued on Thursday, September 24, 2026.
- Why
- To moderate domestic edible oil prices, provide consumer relief, and reduce inflationary pressure caused by higher international oil prices.
Key facts
- Crude sunflower oil duty
- Reduced from 10% to 0%.
- Refined sunflower oil duty
- Reduced from 32.5% to 22.5%.
- Crude soybean and palm oil duty
- Reduced from 10% to 5%.
- Refined soybean and palm oil duty
- Reduced from 32.5% to 27.5%.
- Required company action
- Revise prices to distributors and maximum retail prices in line with lower landed costs.
- Projected import bill
- Estimated at Rs 1.75 lakh crore for the marketing year ending October, up 9%.
- Vegetable oil imports
- Rose 4% to 138.8 lakh tonnes during November-August of the 2025-26 oil year.
Quotes
Food Ministry
India’s ministry responsible for food policy and edible-oil oversight
“The duty rationalisation takes into account the increase in international edible oil prices and the consequent rise in domestic landed costs and retail prices. Import duties constitute an important component of the landed cost of imported edible oils and, therefore, have a bearing on domestic market prices.”
freepressjournal.in
“The government will continue to monitor developments in international edible oil markets and domestic prices and will take appropriate measures, as necessary, to safeguard the interests of consumers while maintaining a balanced policy environment for farmers and the domestic edible oil industry.”
freepressjournal.in
Sources
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