- Food Ministry directs edible oil firms to pass duty benefits to ease the consumer burden.
- Import duties cut on sunflower, soybean, and palm oils.Aims to reduce domestic prices,
Indian households may soon see a decline in their grocery bill, that too amid the festive season, as the Food Ministry has asked edible oil companies to pass on the full benefit of lower import duties to end consumers. Earlier, the Union government on Wednesday reduced the basic customs duty (BCD) on crude sunflower oil from 10 per cent to nil. Additionally, the BCD on refined sunflower oil was slashed from 32.5 per cent to 22.5 per cent.
Meanwhile, the BCD on crude soybean oil and palm oil has been slashed from 10 per cent to 5 per cent, and on refined soybean oil and palm oil from 32.5 per cent to 27.5 per cent.
Companies Need To Pass Benefits
In an official statement on Thursday, the ministry said it has "issued an advisory to edible oil associations and industry stakeholders to ensure that the full benefit arising from the reduction in import duty is passed on to consumers". Industry
In line with the fall in land prices, the partners have been asked to immediately revise their prices fixed for distributors (PTDs) and maximum retail prices (MRPs). The Ministry has directed the edible oil associations to advise their members to implement the relevant price reductions without delay.
"The government will continue to monitor developments in international edible oil markets and domestic prices and will take appropriate measures, as necessary, to safeguard the interests of consumers while maintaining a balanced policy environment for farmers and the domestic edible oil industry," the statement said.
On the duty cut, the ministry said the decision is aimed at moderating domestic edible oil prices, providing relief to consumers and mitigating inflationary pressures arising from the sharp increase in international edible oil prices.
"The duty rationalisation takes into account the increase in international edible oil prices and the consequent rise in domestic landed costs and retail prices. Import duties constitute an important component of the landed cost of imported edible oils and, therefore, have a bearing on domestic market prices," it said.
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Edible Oil Price To Come Down
The prices of edible oil may come down soon post wholesaler and exporters pass on the reduced tax benefits to retailers.
The ministry said it maintained the tariff differential between crude and refined cooking oil to support domestic refining capacity utilisation and discourage excessive imports of refined cooking oil.
India’s Edible Oil Import Bill: Top Facts
India's edible oil import bill is expected to increase by 9% to Rs 1.75 lakh crore this marketing year (ending October) due to higher import volumes and rupee depreciation.
Total vegetable oil imports for November–August 2025–26 grew 4% to 138.8 lakh tonnes from 133.37 lakh tonnes in the corresponding period last year.
Vegetable oil includes both edible and non-edible categories.
Palm oil is imported from Malaysia and Indonesia, while soybean oil is sourced from Argentina and Brazil.