Cut in import duty on crude edible oils

31-May-2025 04:31 PM

New Delhi. The Central Government has significantly reduced the basic import duty on crude edible oils—palm oil, soybean oil, and sunflower oil—by 50 percent.

The basic duty has been lowered from 20 percent to 10 percent. This move is expected to provide relief to Indian refiners and also address the long-standing industry demand to widen the duty gap between crude and refined edible oil imports. There has been no change in the import duty structure for refined edible oils.

 Earlier, the total customs duty on crude edible oils stood at 27.5 percent, which included a 20 percent basic duty, 5 percent agricultural infrastructure development cess, and 2.5 percent social welfare surcharge.

Following the reduction, the total customs duty will now be 16.5 percent, composed of 10 percent basic duty, 5 percent cess, and 1.5 percent social welfare surcharge. In contrast, refined edible oils continue to face a total import duty of 37.75 percent.

 The domestic edible oil industry had been urging the government to maintain at least a 20 percentage point difference in import duties between crude and refined oils. Refined edible oils, especially RBD palmolein, are largely imported from Indonesia and Malaysia.

 The substantial reduction in the import duty on crude oils will help Indian refiners become more competitive against imported refined oils.

The rising share of refined palmolein in the country's total palm oil imports had become a concern due to the narrowing duty differential. The new duty structure is expected to partially curb the growing import of refined oils.