Government Cuts Import Duty on Edible Oils to Lower Prices

Duty Cut Announced

The Union Government lowered the Basic Customs Duty on major imported crude edible oils, including palm oil. The Consumer Affairs Department released a press statement about the decision on September 24. A day before this, the Finance Ministry issued a Gazette Notification on September 23 to update the duty details from a previous order issued on October 24, 2025.

Reasons For The Decision

Officials stated the move aims to cool down domestic edible oil prices and give relief to buyers. It also tries to fight inflation caused by a sharp jump in global edible oil prices. Data from the United Nation's Food and Agriculture Organisation shows the vegetable oil price index rose to 196.9 points in August. This is a 0.6 percent increase from July and marks the third straight month of price rises, hitting the highest level since June 2022. Higher world palm and soy oil prices caused this jump, driven by strong global import demand and fears that El Nino weather conditions will hurt production in Southeast Asia.