{"id":397226,"date":"2026-09-26T12:00:35","date_gmt":"2026-09-26T06:30:35","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=397226"},"modified":"2026-09-26T08:32:36","modified_gmt":"2026-09-26T03:02:36","slug":"government-cuts-import-duty-cut-on-major-edible-oils","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/09\/26\/government-cuts-import-duty-cut-on-major-edible-oils\/","title":{"rendered":"Relief for households as crude edible oil import duties are reduced"},"content":{"rendered":"
\n

On 24 September 2026, the Ministry of Consumer Affairs, Food & Public Distribution, announced a reduction in the Basic Customs Duty (BCD)<\/span> on major imported crude edible oils in view of the sharp increase in international edible oil prices and the resulting rise in domestic retail prices.<\/p>\n

Key Highlights:<\/p>\n

    \n
  1. \n

    The Government has reduced the BCD on Crude Sunflower Oil from 10% to Nil<\/span>.<\/p>\n<\/li>\n

  2. \n

    The BCD on Crude Soybean Oil and Crude Palm Oil<\/span> has been reduced from 10% to 5%<\/span>.<\/p>\n<\/li>\n

  3. \n

    Corresponding reductions have also been made in the BCD applicable to refined edible oils.<\/p>\n<\/li>\n

  4. \n

    By maintaining an import duty differential of 19.25% between crude and refined edible oils, the Government has ensured continued support for the domestic refining industry by discouraging excessive imports of refined products and encouraging value addition within India.<\/p>\n<\/li>\n

  5. \n

    The duty rationalisation aims to moderate domestic edible oil prices and mitigate inflationary pressures arising from higher international prices.<\/p>\n<\/li>\n

  6. \n

    The reduction in import duty is expected to lower the landed cost of imported crude edible oils and facilitate the transmission of benefits through the domestic supply chain.<\/p>\n<\/li>\n

  7. \n

    The retained duty differential is intended to support domestic refining capacity and discourage excessive imports of refined edible oils.<\/p>\n<\/li>\n

  8. \n

    The measure is expected to provide a more level playing field for domestic refiners while supporting continued value addition within the country.<\/p>\n<\/li>\n

  9. \n

    To ensure that consumers benefit from the duty reduction, an advisory has been issued to edible oil associations and industry stakeholders to pass on the resulting cost savings.<\/p>\n<\/li>\n

  10. \n

    Industry stakeholders have been requested to:<\/p>\n

      \n
    • \n

      Immediately revise their Price to Distributors (PTD)<\/span> in line with the reduced landed cost.<\/p>\n<\/li>\n

    • \n

      Reduce the Maximum Retail Price (MRP)<\/span> of edible oils accordingly.<\/p>\n<\/li>\n

    • \n

      Implement corresponding price reductions without delay.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

      Government has reduced the Basic Customs Duty (BCD) on major imported crude edible oils, including sunflower, soybean and palm oil, to moderate domestic prices, provide relief to consumers and contain inflationary pressures.<\/p>\n","protected":false},"author":67525,"featured_media":397237,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,1193],"tags":[115668,115672,115664,115670,115663,115667,115671,115669,115666,115665],"class_list":["post-397226","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-notifications","tag-bcd-reduction-edible-oils","tag-consumer-relief-edible-oils","tag-crude-sunflower-oil-duty-reduced","tag-domestic-refining-industry","tag-edible-oil-import-duty-cut","tag-edible-oil-prices-india","tag-import-duty-differential","tag-inflation-control-measures","tag-palm-oil-import-duty-india","tag-soybean-oil-customs-duty"],"yoast_head":"\nGovernment cuts import duty on major edible oils to ease prices | SCC Times<\/title>\n<meta name=\"description\" content=\"Government reduces import duty on crude sunflower, soybean and palm 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