In a move aimed at strengthening domestic refining and curbing inflation, India has slashed the import duty on crude edible oils, including sunflower, palm, and soybean oils, from 20% to 10%. With additional agri-cess and welfare levies, the effective duty now stands at 16.5% for all three.
The import duty on refined oils remains unchanged at 32.5%, with an effective rate of 35.75%, widening the duty gap between crude and refined oils from 8.25% to 19.25%. The Indian Vegetable Oil Producers Association (IVPA) welcomed the decision, calling it a necessary step to protect domestic refiners and ensure fair prices for both farmers and consumers.
The government said the revised rates, effective from May 31, are expected to lower the landed cost of imports, reduce retail prices, and help cool food inflation, which fell to 1.78% in April—the lowest since October 2021.
India imports over 70% of its vegetable oil requirements, mainly sourcing palm oil from Southeast Asia and sunflower and soybean oils from Latin America and Eastern Europe.
