Govt Asks Edible Oil Firms To Pass On Full Benefit Of Import Duty Cut To Consumers
New Delhi, September 24, 2026: The Food Ministry has asked edible oil companies to pass on the full benefit of lower import duties on cooking oils to consumers. On Wednesday, the government reduced the basic customs duty (BCD) on crude sunflower oil from 10 per cent to nil. The BCD on refined sunflower oil has been trimmed from 32.5 per cent to 22.5 per cent. The BCD on crude soybean oil and palm…
On September 24, 2026, the Food Ministry issued an advisory to edible oil companies to fully transfer the benefits of reduced import duties to consumers. The government lowered the basic customs duty (BCD) on crude sunflower oil to 0 percent, while refined sunflower oil saw a decrease from 32.5 percent to 22.5 percent. Similarly, the BCD on crude soybean oil and palm oil dropped from 10 percent to 5 percent, as well as on refined soybean oil and palm oil from 32.5 percent to 27.5 percent.
The ministry issued an advisory to industry stakeholders to immediately revise price to distributors (PTD) and maximum retail price (MRP) in line with the reduced landed costs. The government will monitor international edible oil markets and domestic prices, taking necessary actions to protect consumer interests while maintaining a balanced policy for farmers and the domestic industry.
The duty cut aims to ease domestic edible oil prices, offer relief to consumers, and mitigate inflationary pressures arising from the surge in international edible oil prices. The ministry maintained the duty differential between crude and refined edible oils to encourage local refining and discourage excessive imports of refined oils.
India's edible oil import bill is expected to rise by 9 percent to Rs 1.75 lakh crore during the current marketing year due to higher volumes and declining rupee value.
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