Edible Oil Import Duty Reduction To Ease Cooking Oil Prices, Says SEA

New Delhi, Sep 24 - The Solvent Extractors’ Association of India (SEA) has welcomed the decision to reduce import duties on edible oils, believing it will help alleviate the high retail prices of cooking oils. According to SEA, India's edible oil import bill is anticipated to surge by 9 per cent to Rs 1.75 lakh crore during the current marketing year, ending in October, due to higher volumes and a weaker rupee.

The decision to cut import duty on edible oils is deemed 'balanced' by SEA, as it protects both the interests of consumers and the industry. President of SEA, Sanjeev Asthana, stated that the present duty adjustment should be considered in light of the approximately 25 per cent surge in international edible oil prices, along with a 12-15 per cent rise in domestic prices over the past year.

The Consumer Price Index has also jumped to 4.8 per cent, while food inflation has risen to 5.95 per cent, causing concern for the government.

The primary aim of this measure is to ease the burden on consumers while maintaining the duty differential between crude and refined oils. This approach ensures that the domestic refining industry remains an essential part of the value chain. SEA expects the reduction in import duty to help mitigate the impact of high global prices on Indian consumers, potentially affecting the import of refined edible oils from Nepal under the existing bilateral trade framework.

Without altering the agreement between India and Nepal, a lower domestic import duty could lessen the advantage of importing from Nepal, thereby reducing the incentive for large-scale inflows. Executive Director of SEA, B V Mehta, anticipates the benefits of lower import costs to gradually filter into the domestic market. In the 2025-26 oil year, vegetable oil imports have already risen by 4 per cent to 138.8 lakh tonnes, compared to 133.37 lakh tonnes in the previous year.