Govt Slashes Import Duty on Crude Edible Oils to Curb Prices, Boost Domestic Refining
New Delhi : In a significant move aimed at easing the burden of rising cooking oil prices, the Central Government has announced a sharp reduction in the Basic Customs Duty (BCD) on major crude edible oils ; sunflower oil, soybean oil, and palm oil—from 20% to 10%. The revised rates come into effect immediately.
The decision, taken against the backdrop of surging edible oil prices due to a September 2024 duty hike and escalating global market rates, is expected to stabilize retail prices and provide relief to consumers. According to the Ministry of Consumer Affairs, Food & Public Distribution, the lowered duty will reduce the landed cost of crude oils and help contain inflationary pressures.
Crucially, the duty cut increases the differential between crude and refined edible oils from 8.75% to 19.25%. This policy is designed to discourage imports of refined oils such as palmolein and incentivize the import of crude oils for domestic processing.
“The move will not only make edible oils more affordable but also enhance capacity utilization of domestic refineries and support local farmers by strengthening India’s refining sector,” the Ministry stated.
An advisory has been issued to industry bodies, urging them to pass on the full benefit of the duty reduction to consumers through immediate reductions in distributor prices (PTD) and Maximum Retail Prices (MRP). The Department of Food and Public Distribution has held a high-level meeting with major edible oil associations to ensure compliance.
As part of the monitoring mechanism, industry players have been directed to submit weekly brand-wise MRP sheets to the Department to ensure transparency and timely reflection of reduced input costs across the supply chain.
The government has stressed the urgency of implementation, calling for swift and visible action from all stakeholders to ensure that the relief reaches end consumers without delay.
