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Edible Oil Duty Cut: Patanjali Foods, AWL Agri, Godrej Agrovet Shares in Focus
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CNBC TV18•24-09-2026, 08:08
Edible Oil Duty Cut: Patanjali Foods, AWL Agri, Godrej Agrovet Shares in Focus
- •The Indian government reduced basic customs duty on crude and refined edible oils, including palm, soy, and sunflower oil, effective September 24.
- •This move aims to lower edible oil prices for consumers ahead of the festive season and address a nearly 20% rise in vegetable oil prices over the past year.
- •The duty cut reduces the total import duty on crude palm oil and crude soyoil to 11% and crude sunflower oil to 5.5%.
- •Patanjali Foods highlighted supply challenges due to the West Asia crisis, with 90% of its sunflower oil imports currently stuck, increasing freight and insurance costs.
- •The duty reduction is expected to provide relief to refiners and edible oil companies by lowering import costs, potentially boosting demand for imported oils and benefiting sunflower oil.
Key Questions Answered
The basic customs duty on crude palm oil and crude soyoil was reduced from 10% to 5%, while the duty on refined variants dropped from 32.5% to 27.5%. Additionally, the duty on crude sunflower oil was slashed from 10% to zero, and refined sunflower oil was lowered from 32.5% to 22.5%.
The tariff cuts aim to cool down domestic vegetable oil prices—which surged nearly 20% over the past year—and support heavy consumer demand for sweets, snacks, and fried foods during the upcoming festival season from September to November.
Patanjali Foods reported that approximately 90% of its sunflower oil imports are currently stuck due to the ongoing West Asia crisis, alongside inflated import costs driven by higher freight and insurance expenses.
