India Halves Import Duty on Crude Edible Oils to Tame Inflation

New Delhi, May 31 (KNN) In a strategic move to curb food inflation and bolster domestic refining, the Indian government announced a 10 percentage point reduction in the basic customs duty on crude edible oils. 

Effective immediately, the duty on crude palm oil, crude soybean oil, and crude sunflower oil has been halved from 20% to 10% .

This policy adjustment aims to lower the landed cost of essential cooking oils, thereby reducing retail prices and easing inflationary pressures. 

The decision is also expected to enhance domestic refining capacities by increasing the duty differential between crude and refined oils to 19.25%, promoting the "Make in India" initiative.

Sudhakar Desai, President of the Indian Vegetable Oil Producers’ Association, welcomed the move, stating it would strengthen domestic refining and ensure fair prices for both consumers and oilseed farmers. 

However, the Soybean Processors Association of India expressed concerns, arguing that the duty reduction could disadvantage local oilseed growers and processors by favouring imports over domestic production .

India, which imports approximately 70% of its edible oil requirements, has seen a surge in refined oil imports in recent months. 

By adjusting the import duties, the government seeks to balance consumer interests with the need to support domestic agriculture and industry.

This measure is part of broader efforts to manage food inflation, which, according to official data, stood at 1.78% in April 2025, with oils and fats registering double-digit inflation rates .

The revised duty structure is set to remain in effect for one year, during which the government will monitor its impact on prices, demand, and domestic production.

(KNN Bureau)