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Edible Oil Import Duty Cut to Soften Retail Prices, Says Industry Body SEA
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News18•24-09-2026, 19:45
Edible Oil Import Duty Cut to Soften Retail Prices, Says Industry Body SEA
- •The Solvent Extractors’ Association of India (SEA) has welcomed the government's decision to reduce import duties on edible oils, anticipating a softening of retail prices.
- •SEA President Sanjeev Asthana stated that the duty adjustment addresses a 25% increase in international edible oil prices and a 12-15% rise in domestic prices over the past year, alongside rising food inflation.
- •The move aims to moderate the burden on consumers while maintaining the duty differential between crude and refined oils, supporting the domestic refining industry.
- •The reduction in import duty is also expected to lessen the arbitrage advantage for refined edible oil imports from Nepal, moderating large-scale inflows.
- •India's edible oil import bill is projected to increase by 9% to Rs 1.75 lakh crore this marketing year, driven by higher volumes and rupee depreciation.
Key Questions Answered
The central government reduced basic customs duties on crude soybean and palm oils from 10% to 5%, while cutting refined versions from 32.5% to 27.5%. Additionally, the duty on crude sunflower oil was reduced to zero, and refined sunflower oil dropped from 32.5% to 22.5%.
According to the Solvent Extractors’ Association of India, a lower domestic import duty reduces the arbitrage advantage associated with refined edible oil imports from Nepal, thereby moderating the incentive for large-scale inflows under the bilateral trade framework.
International edible oil prices increased by about 25 percent and domestic prices rose by 12 to 15 percent over the past year, alongside rising food inflation and high demand approaching the festive season.
