News Brief

Edible Oil Relief: Centre Cuts Import Duty On Crude Oils From 20 Per Cent to 10 Per Cent, Urges Industry To Pass On Benefit

Kuldeep Negi

Jun 12, 2025, 10:36 AM | Updated 10:36 AM IST


Palm Oil
Palm Oil

Centre has reduced the Basic Customs Duty (BCD) on crude edible oils — crude sunflower, soybean, and palm oils from 20 per cent to 10 per cent.

This move will result in the import duty differential between crude and refined edible oils from 8.75 per cent to 19.25 per cent, according to an official statement.

This adjustment aims to address the escalating edible oil prices resulting from the September 2024 duty hike and concurrent increases in international market prices, the Ministry of Consumer Affairs, Food & Public Distribution said in a statement.

Further, the ministry has issued an advisory to edible oil associations and industry stakeholders to ensure that the full benefit of the reduced duty is passed on to consumers.

According to the ministry, the 19.25 per cent duty differential between crude and refined oils helps to encourage domestic refining capacity utilisation and reduce imports of refined oils.

Import duty on edible oils is one of the important factors that impacted landed cost of edible oils and thereby domestic prices. By lowering the import duty on crude oils, the government aims to reduce the landed cost and retail prices of edible oils, providing relief to consumers and helping to cool overall inflation, the ministry said.

The reduced duty will also encourage domestic refining and maintain fair compensation for farmers.

Further, the ministry noted that the revised duty structure will discourage the import of refined Palmolein and redirect demand towards crude edible oils especially crude palm oil, thereby strengthening and revitalising the domestic refining sector.

This significant policy intervention, according to the ministry, not only ensures a level playing field for domestic refiners but also contributes to the stabilisation of edible oil prices for Indian consumers.

In a meeting with leading edible oil industry associations and industry, chaired Food and Public Distribution secretary, an advisory was issued to them to pass on the benefits from this duty reduction on to consumers.

The ministry expects industry stakeholders to adjust the Price to Distributors (PTD) and the Maximum Retail Price (MRP) in accordance with the lower landed costs with immediate effect.

The Associations have been requested to advise their members to implement immediate price reductions and share the updated brand-wise MRP sheets with the department on a weekly basis.

The timely transmission of this benefit to the supply chain is imperative to ensure that consumers experience a corresponding decrease in retail prices, the ministry said.

This decision comes after a detailed review of the sharp rise in edible oil prices following last year’s duty hike.

The increase led to significant inflationary pressure on consumers, with retail edible oil prices soaring and contributing to rising food inflation.

Also Read: Indian Coast Guard Races To Tow Burning Cargo Ship Away From Kerala Coast To Avert Potential Ecological Disaster

Kuldeep is Senior Editor (Newsroom) at Swarajya. He tweets at @kaydnegi.


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