The Ministry of Finance has cut basic customs duty on crude and refined edible oils through customs notification 31/2026, issued on 23 September and effective from 24 September 2026.
Duty on crude sunflower oil falls from 10 percent to nil, while crude soybean and crude palm oil drop from 10 percent to 5 percent. On refined oils, sunflower falls from 32.5 percent to 22.5 percent, and soybean and palm from 32.5 percent to 27.5 percent. The effective duty gap of 19.25 percentage points between crude and refined oils stays in place to protect domestic refiners.
Alongside the cut, the Food Ministry told companies to lower prices to distributors and reduce MRPs immediately, and asked industry associations to make sure members comply. The government said it will keep a close watch on prices. The aim is to ease the impact of rising world prices on consumers and food inflation ahead of the festive season.
The Solvent Extractors’ Association expects India’s edible oil import bill to rise 9 percent to ₹1.75 lakh crore for the oil year ending October. Imports from November to August rose 4 percent to 138.8 lakh tonnes from 133.37 lakh tonnes.
Market Research Outlook: Cheaper crude edible oil imports should bring quick relief on shelf prices, especially for sunflower oil. Keeping the gap between crude and refined duty protects local refiners and the jobs they support. But with India importing more than half its edible oil, the cut also deepens dependence on overseas supply.
