The government has cut import duty on sunflower, soybean and palm oils from September 24 as refined oil inflation rises and edible oil imports increase.
The government has cut import duty on crude and refined sunflower, soybean, and palm oil to reduce edible oil prices in the domestic market. The duty cuts will be effective from September 24.
The basic customs duty (BCD) on crude Soybean Oil and Palm Oil has been slashed from 10 per cent to 5 per cent, and on refined Soybean Oil and Palm Oil from 32.5 per cent to 27.5 per cent. Meanwhile, the BCD on crude Sunflower Oil has been abolished; previously, it was 10 per cent. But import duty on refined Sunflower Oil has been trimmed to 22.5 per cent from 32.5 per cent, the finance ministry said in a notification.
Edible oil inflation rises
The All India Consumer Food Price Index (CFPI) for August was 5.95 per cent, up from 5.52 per cent in July. In the food basket, retail inflation in refined oil, the most consumed edible oil, has been rising steadily since moving to double digits (10.25 per cent) in April from 7.62 per cent in March, and in August it recorded 14.24 per cent.
Sudhakar Desai, President of the Indian Vegetable Oil Producers’ Association (IVPA), said the decision comes at an important juncture, particularly with the festive season approaching. At the consumer level, however, the impact of any duty reduction will depend on several factors beyond customs duties, including international commodity prices, freight costs, exchange-rate movements, domestic availability and inventory levels, he said.
Stating that lower import duties should improve the landed costs of imported edible oils, which can provide some reduction in consumer prices, Desai said the immediate priority for the sector is to ensure adequate availability across the country during the upcoming festival months, with higher household demand as well as increased requirements from the sweets, snacks, food-service and HORECA segments.
Industry flags import competition
“Industry especially in north and north east has been reeling under the pressure of zero duty imports from Nepal due to duty arbitrage with Indian duties which will continue as Nepal goods will still be more competitive compared to domestically refined oils. IVPA has been demanding an import quota on zero duty imports from SAFTA countries,” he added.
The Solvent Extractors’ Association of India (SEA) highlighted potential volatility in the global edible oil sector during its recent meeting with senior government officials on September 21. In his monthly letter to the members, SEA President Sanjeev Asthana said that the government was apprised of the current edible oil stocks and supply situation.
Stating that the industry flagged potential volatility ahead, he said the possible impact of El Niño, continued uncertainty around sunflower oil supplies amid the Russia-Ukraine conflict and Indonesia’s B50 biodiesel programme could alter the global vegetable oil balance. This could increase the strategic importance of soybean and soybean oil in the coming months, he added.
Edible oil imports rise
India’s edible oil imports grew 4.56 per cent during the first 10 months of the oil year 2025-26 (November-October), driven by an increase in imports of palm oil and soybean oil.
Data compiled by SEA showed that India imported 136.19 lakh tonnes (lt) of edible oil during November-August of the oil year 2025-26, up from 130.24 lt in the corresponding period of 2024-25.
Palm oil imports (including crude palm oil and RBD palmolein) increased to 65.34 lt during the first 10 months of the oil year 2025-26 from 61.47 lt in the corresponding period of the previous oil year. During the period, soybean oil imports increased to 45.61 lt (from 44.64 lt) and sunflower oil imports to 25.15 lt (from 24 lt).
Published on September 23, 2026
