India cuts edible oil import duty to lower prices ahead of festivals - Reuters

The Union government announced on Thursday, 24 September 2026, a reduction in the Basic Customs Duty (BCD) on a range of imported edible oils as the country approaches its major religious festivals that run from September to November.

The duty on crude sunflower oil has been lowered from 10 percent to zero, while the BCD on both crude soybean oil and crude palm oil has been cut from 10 percent to 5 percent. In addition, the government has reduced the BCD on refined palm oil and refined soybean oil from 32.5 percent to 27.5 percent, and on refined sunflower oil from 32.5 percent to 22.5 percent.

Along with the basic customs duty, imports of edible oils are subject to the Agriculture Infrastructure and Development Cess and the Social Welfare Surcharge. After accounting for these levies, the total import duty on crude palm oil and crude soybean oil will fall to 11 percent from 16.5 percent, and the total duty on crude sunflower oil will drop to 5.5 percent from 16.5 percent. The government also noted that it is maintaining an import‑duty differential of 19.25 percent between crude and refined edible oils.

The reduction is intended to moderate domestic edible‑oil prices, provide relief to consumers and ease inflationary pressures that have arisen from a sharp rise in international oil prices. Officials said that import duties form a significant component of the landed cost of imported oils, and lowering them should help transmit price benefits through the domestic supply chain.

Edible‑oil prices in India have risen by nearly 20 percent over the past year, prompting concerns ahead of the festive season when demand for sweets, snacks and fried foods typically increases. The government expects the duty cuts to lower landed costs, support consumption during the festivals and contribute to broader price‑stability objectives.

Analysts note that stronger Indian imports could also influence global markets, potentially supporting Malaysian palm‑oil and U.S. soybean‑oil futures. The government has indicated that the measures are part of a broader effort to contain inflation while ensuring adequate supply of edible oils during a period of heightened demand.