The Ministry of Consumer Affairs, Food and Public Distribution has cut import duties on major edible oils to bring down consumer prices across India. The government reduced the Basic Customs Duty (BCD) on crude sunflower oil to zero from 10%, while cutting the duty on crude soybean oil and crude palm oil to 5% each, down from 10%. These changes take effect immediately to address the rising cost of edible oils in domestic markets.
The move comes as international edible oil prices have surged, pushing up the cost of cooking oil for Indian households. By reducing import duties, the government aims to lower the landed cost of these oils when they enter India, allowing cheaper supplies to reach shops and consumers. The ministry has also issued an advisory to industry associations to pass on the full benefit of lower duties to consumers without delay.
Key facts
- Crude sunflower oil: import duty cut from 10% to 0%
- Crude soybean oil: import duty cut from 10% to 5%
- Crude palm oil: import duty cut from 10% to 5%
- Duty differential between crude and refined oils maintained at 19.25%
- Ministry: Consumer Affairs, Food and Public Distribution
- Announced: 24 September 2026
How import duties affect your oil prices
When edible oil is imported into India, the government charges a customs duty on the shipment. This duty is added to the cost of the oil, making the final price higher in Indian shops. When international oil prices rise sharply, these import duties become a significant part of what you pay at the counter. By cutting the duty, the government reduces this extra cost, making imported oil cheaper to bring into the country.
The reduction is most dramatic for sunflower oil, where the duty has been eliminated entirely. Sunflower oil is a commonly used cooking oil in many Indian households. Soybean and palm oils, which are also widely consumed, now face a lower 5% duty instead of the previous 10%, cutting the import tax in half.
Why the duty differential is maintained
The government kept a significant difference in duty between crude and refined oils at 19.25%. Crude oils are the raw, unrefined product imported from abroad. Refined oils are processed versions that can be made either from imported crude oil or from domestic sources. By keeping refined oil duties higher, the government encourages oil companies to refine crude oil inside India rather than importing ready-made refined oil. This protects India’s domestic refining industry and keeps value addition within the country, supporting local jobs and businesses.
How this connects to inflation control
Edible oil is a staple food item in Indian kitchens. When oil prices rise, it contributes to overall food inflation, which affects the purchasing power of ordinary households. High food prices also influence the broader inflation rate that the Reserve Bank of India tracks. By reducing the cost of imported oils, the government aims to contain food price inflation and ease overall inflationary pressure on the economy.
What the government expects from industry
The Ministry has asked edible oil associations and retailers to immediately revise their prices downward to reflect the lower import duties. The advisory requests them to adjust both the Price to Distributors (PTD), which is what wholesalers pay, and the Maximum Retail Price (MRP) that consumers see on shelves. The government has made clear that industry should not pocket the duty savings but should pass them on to consumers without delay.
What this means for you
If you buy edible oil for cooking, you should expect prices to come down in the coming weeks as retailers adjust to lower import costs. The benefit will be largest for sunflower oil, which now has zero duty. Consumers of soybean and palm oils will also see moderate price reductions. However, the actual price drop will depend on how quickly retailers implement the changes and how much international oil prices fall or stabilize in the coming months.
What happens next
The government will monitor international edible oil market movements and domestic prices. It has indicated it will take further steps if needed to protect consumer interests while balancing the needs of farmers and the domestic edible oil industry.