Ahead of festivals, Centre cuts import duty on edible oils

The Union government on Thursday (September 24, 2026) reduced the Basic Customs Duty (BCD) on major imported crude edible oils, including palm oil. A statement from the Union Food and Consumer Affairs Ministry said the decision was taken to moderate domestic edible oil prices, provide relief to consumers, and mitigate “inflationary pressures” arising from the “sharp increase in international edible oil prices”.

The BCD on crude sunflower oil has been reduced from 10% to nil, while the BCD on crude soybean oil and crude palm oil has been reduced from 10% to 5%.

“The Government has simultaneously reduced the applicable BCD on the respective refined edible oils while maintaining an import duty differential of 19.25% between crude and refined edible oils. The duty rationalisation takes into account the increase in international edible oil prices and the consequent rise in domestic landed costs and retail prices,” the Centre said in the release, adding that import duties constitute an important component of the landed cost of imported edible oils, and therefore have a bearing on domestic market prices.