To rein in soaring cooking oil prices ahead of the peak festive season, the government on Wednesday slashed the basic customs duty on crude soyabean and palm oils to 5% from 10%. Import duty on crude sunflower oil has been reduced to zero from 10%, according to the finance ministry notification.
In addition, import duties on refined soyabean and palm oils have been reduced to 27.5% from 32.5%. Duties on refined sunflower imports have been reduced to 22.5% from 32.5%.
In June, 2025, the government reduced the import duty on major crude edible oils — sunflower, soyabean, and palm — from 20% to 10%.
India imports more than 58% of its annual edible oil requirement. Palm, soyabean and sunflower account for the bulk of imports of around 16 million tonne (MT) annually.
The edible oils prices have risen because of higher freight, insurance costs, depreciation of rupee and oil exporting countries especially Indonesia diverting cooking oils for biofuel having impacted the global prices.
Data from the Solvent Extractors’ Association of India showed crude palm, soyabean and sunflower oil landed at Mumbai ports on September 18 at $1,265, $1,314 and $1,380 per tonne, respectively. Palm and soyabean oil costs were 11% higher than a year earlier, while sunflower oil was up 7%.
Domestic retail prices are already above year-ago levels. Average retail prices of mustard, soyabean and palm oils stood at Rs 202.87, Rs 166.87 and Rs 153.89 per kg, respectively, on Wednesday, according to the Department of Consumer Affairs’ price monitoring cell. The three oils were 8%, 14% and 16% more expensive than a year earlier.