In a significant policy move aimed at improving the affordability and availability of essential cooking oils, the Government of India has reduced the import duty on crude edible oils. The change, which came into effect on May 30, 2025, applies to crude palm oil, crude soyoil, and crude sunflower oil, all of which are key components in the Indian edible oil basket.

Key Changes in Import Duty

The basic customs duty has been cut from 20% to 10%. When combined with other applicable levies — including the Agriculture Infrastructure and Development Cess and the Social Welfare Surcharge — the total effective import duty now stands at 16.5%, down from 27.5%.

Government’s Objectives Behind the Move

This policy decision is primarily aimed at boosting domestic consumption, encouraging higher imports, and bringing down retail prices. India, being one of the largest importers of edible oils globally, is highly sensitive to global price fluctuations. By reducing the import duty, the government seeks to offset inflationary pressures and support household food security.

Market Expectations

Industry analysts and trade bodies expect a noticeable increase in the import volumes of crude edible oils in the coming months. Additionally, retail prices for consumers are projected to soften, providing relief amid general food inflation.

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Summary Table: Edible Oil Duty Reduction Details

Parameter	Before (Until May 29, 2025)	After (From May 30, 2025)
Basic Customs Duty	20%	10%
Total Effective Import Duty	27.5%	16.5%
Applicable Oils	Crude palm oil, soyoil, sunflower oil	Same
Expected Market Impact	High prices, limited demand	Lower prices, higher demand
Import Volume Trend	Stable/moderate	Expected to increase
Policy Objective	Price stabilization, inflation control	Same
Effective Date	–	May 30, 2025

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Conclusion

This move underscores the government’s proactive stance on managing essential commodity prices amid global volatility. As the revised duties take effect, both consumers and importers are likely to benefit — consumers through lower prices and importers through increased demand and trade volume. Over the coming weeks, the market will watch closely to see how these changes influence retail pricing, import patterns, and overall inflation.