Center reduces import duty on edible oils ahead of festivals

The BCD for crude sunflower oil was reduced from 10% to zero, while the BCD for crude soybean oil and crude palm oil was reduced from 10% to 5%.

The Union government on Thursday (September 24, 2026) reduced the basic duty (BCD) on major imported crude edible oils, including palm oil. A statement from the Union Ministry of Food and Consumer Affairs said the decision was taken to moderate domestic edible oil prices to provide relief to consumers and ease “inflationary pressures” arising from “surge in international edible oil prices”.

The BCD for crude sunflower oil was reduced from 10% to zero, while the BCD for crude soybean oil and crude palm oil was reduced from 10% to 5%.

“At the same time, the government has reduced the applicable BCD on the relevant refined edible oils while maintaining the import duty differential of 19.25% between crude and refined edible oils. The tariff rationalization takes into account the increase in international prices of edible oils and the consequent rise in domestic landing costs and retail prices,” the center said in a report, adding that import duties form an important component of landed oil costs and hence import prices in the domestic market.

The Center expects that lowering the BCD for crude edible oils will reduce the cost of landing them and facilitate the transfer of benefits through the domestic supply chain. “The measure is intended to provide relief to consumers while contributing to the broader objective of containing food prices and overall inflationary pressures,” it said.

The government said it maintained the duty differential between crude and refined edible oils to encourage the use of domestic refining capacity and discourage excessive imports of refined edible oils. “The measure is expected to provide a level playing field to domestic refiners while promoting continued value addition in the country,” it said.

Reacting to the development, the Indian Vegetable Oil Producers Association (IVPA), the national body for the edible oil industry, said it comes at an important time, especially with the festive season approaching. IVPA president Sudhakar Desai said lower import duties should improve the cost of landing imported edible oils, which may bring some reduction in consumer prices. “The immediate priority for the edible oil sector is to ensure adequate availability across the country during the coming festival months, with higher household demand as well as increased demands from the sweets, snacks, food service and hotel, restaurant and cafe/catering segments,” he said.

The government also said it has issued recommendations to edible oil associations and industry stakeholders to ensure that the full benefit of the reduction in import duty is passed on to consumers.

Published – 24 Sep 2026 22:29 IST