The Government of India has reduced the Basic Customs Duty (BCD) on several imported crude edible oils to alleviate pressure on consumers and counter inflationary forces caused by rising international prices.
On September 24, 2026, the Indian Government announced a reduction in the BCD on major imported crude edible oils with the intention of moderating domestic edible oil prices. This move comes as a response to the surge in international edible oil prices that has been placing pressure on consumers.
The reduction in BCD varies for different types of crude edible oils. For Crude Sunflower Oil, the duty has been eliminated entirely (from 10% to Nil). Meanwhile, the BCD on both Crude Soybean Oil and Crude Palm Oil has been reduced from 10% to 5%.
Simultaneously, the Government has reduced the applicable BCD on respective refined edible oils while maintaining a duty differential of 19.25% between crude and refined edible oils. This is done to lower the landed cost of imported edible oils, allowing benefits to be transmitted through the domestic supply chain more effectively.
An advisory has been issued by the Government to edible oil associations and industry stakeholders, urging them to ensure that consumers receive the full benefit from the reduction in import duty. The advisory calls for immediate revisions to Price to Distributors (PTD) and Maximum Retail Price (MRP), with edible oil associations being asked to advise their members to implement corresponding price reductions promptly.
The Government will continue to monitor international edible oil markets and domestic prices, ready to take further action as needed to protect consumer interests while maintaining a balanced policy environment for farmers and the domestic edible oil industry.
Source:
Press Information Bureau
