Edible Oil Prices Decline Following Customs Duty Reduction

12-Jun-2025 01:26 PM

Mumbai. The impact of the government's significant reduction in basic import duty on crude edible oils at the end of May has now started to reflect in the domestic market. Edible oil companies have begun passing on the benefits of the duty cut to consumers by lowering product prices. Industry analysts expect retail prices of edible oils to decline by 5–7 percent in the coming weeks.

Mother Dairy has reduced the maximum retail price (MRP) of its 'Dhara' brand soybean oil by Rs 10 per litre, while the selling price of sunflower oil has been lowered by Rs 5 per litre, with no change in its MRP. Senior officials from edible oil companies indicated that further price cuts of 5–7 percent are likely.

On 30 May 2025, the central government reduced the basic import duty on crude palm oil, soybean oil, and sunflower oil from 20 percent to 10 percent. As a result, the total effective customs duty dropped from 27.5 percent to 16.5 percent, making crude edible oil imports cheaper. The government implemented this measure to control the rising prices of edible oil in the domestic market.

In a meeting held by the Ministry of Food on 11 June, the edible oil industry reported that the process of passing on the benefit of the duty cut to consumers is underway and that a reduction in retail prices will soon be visible. In line with the lower import costs, supplies to distributors will be made at reduced rates, and the MRP will be adjusted accordingly. Industry associations were also asked to encourage their members to lower prices in proportion to the duty reduction. The Food Ministry will review edible oil prices weekly to monitor the impact of the duty cut. Globally, edible oil prices have also remained largely stable.