The Ministry of Consumer Affairs, Food and Public Distribution has directed edible oil industry associations and stakeholders to immediately pass on the benefits of the recent import duty cut to consumers. The move follows the Centre’s decision to slash the Basic Customs Duty (BCD) on crude edible oils — including sunflower, soybean, and palm oils — from 20% to 10%.
In a meeting chaired by the department secretary, industry bodies were advised to align their Price to Distributors (PTD) and Maximum Retail Prices (MRP) with the reduced landed costs. The ministry has also issued a reporting format for companies to submit brand-wise MRP updates weekly, ensuring transparent monitoring of compliance.
Officials said the decision is aimed at curbing food inflation and reducing the retail prices of edible oils, which have risen sharply following a duty hike in September 2024, coupled with global price increases. The revised 19.25% duty differential between crude and refined oils is also expected to boost domestic refining capacity and discourage refined oil imports.
The ministry stressed the importance of timely transmission of the benefits through the supply chain, urging all associations to advise their members to implement immediate price reductions. The government emphasised that import duties are a key component in determining the landed cost of oils, and the reduction is expected to provide direct relief to consumers battling high food prices.