Possibility of Import Duty Cuts on Edible Oils

07-Apr-2026 03:40 PM

New Delhi. With the objective of curbing rising food inflation, the government is seriously considering various measures. This includes a proposal to reduce import duties on edible oils. In recent weeks, the prices of edible oils have witnessed a significant surge, thereby increasing the hardships faced by common consumers.

In fact, due to the conflict between Iran and the US, global market prices for crude oil have risen; furthermore, increased shipping costs are making the import of edible oils—along with other commodities—more expensive. The depreciation of the Rupee is also contributing to the rise in import costs.

The general public is distressed by the escalation in the prices of food products. While the rise in wholesale market prices has been relatively moderate, a significant surge is being observed in the retail market. The retail price of mustard oil has reached ₹170 per kilogram.

It is noteworthy that India is the world's largest importer of edible oils. Approximately 60 percent of the country's edible oil requirements are met through imports, as domestic production is capable of fulfilling only 40 percent of the demand.

India imports palm oil, soybean oil, and sunflower oil in massive quantities. In March, palm oil imports declined by nearly 20 percent compared to the previous year, and there was also a slight reduction in soybean oil imports.

Experts suggest that the government may consider completely exempting edible oil imports from customs duties for a period of a few months. The high cost of edible oils has begun to drive up the production costs of Fast-Moving Consumer Goods (FMCG) products. This, in turn, could potentially impact business operations within the sector.