The government has reduced import duties on several crude and refined edible oils in an effort to contain rising cooking oil prices ahead of the festive season. The changes cover palm, soybean and sunflower oils and are expected to reduce import costs for the industry.
The basic customs duty on crude soybean oil and crude palm oil has been lowered to 5% from 10%. For crude sunflower oil, the duty has been reduced to zero from 10%.
Import duties on refined oils have also been cut. The duty on refined soybean oil and refined palm oil has been reduced to 27.5% from 32.5%, while refined sunflower oil will now attract a 22.5% duty compared with the earlier 32.5%.
The revised rates will take effect from midnight. Lower import duties could reduce the cost of bringing edible oils into India, potentially easing retail prices if the benefit is passed through the supply chain to consumers.
India depends significantly on imports to meet domestic edible oil demand, making international prices, supply conditions and import duties important factors influencing cooking oil prices in the country.
The government’s decision comes ahead of the festival season, when household demand for edible oils generally increases. The duty cuts are therefore aimed at improving supply-side cost conditions while helping manage pressure on retail cooking oil prices.
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