Centre Lowers Import Tax on Crude Edible Oils Ahead of Festive Season

The Union government has cut the Basic Customs Duty on key imported crude edible oils to lower domestic prices and help consumers. The tax on crude sunflower oil drops from ten percent to zero, while the duty on crude soybean oil and crude palm oil goes down from ten percent to five percent.

Duty Changes

Announced on Thursday, September 24, 2026, the move follows a sharp rise in international edible oil prices that pushed up domestic retail rates. The Ministry of Food and Consumer Affairs states that lowering these taxes reduces the landed cost of imports and helps pass those savings through the local supply chain. The government has also lowered taxes on refined edible oils to keep a gap of 19.25 percent between crude and refined oils, which protects local refineries and prevents a flood of cheap refined imports.

Industry Reaction

Sudhakar Desai, president of the Indian Vegetable Oil Producers' Association, notes that the step comes at a vital time before the festival months. He explains that lower duties will improve landed costs and help lower prices for buyers when household and commercial demand rises for sweets, snacks, and catering. Meanwhile, the government has advised industry groups to make sure companies pass the entire tax cut benefit directly on to regular shoppers.