The Ministry of Food has asked edible oil companies to immediately reduce distributor prices and maximum retail prices (MRPs) to ensure consumers receive the full benefit of the government’s recent import duty reductions.
In an advisory issued to edible oil associations and industry stakeholders, the ministry directed companies to revise their price to distributors (PTD) and MRPs in line with the reduction in landed costs. Industry associations have also been asked to advise their members to implement the corresponding price cuts without delay.
The move follows the government’s decision to reduce basic customs duties on crude and refined edible oils as international prices rise. The measure is aimed at moderating domestic cooking oil prices and containing inflationary pressures.
Under the revised duty structure, the basic customs duty (BCD) on crude sunflower oil has been reduced from 10% to nil, while the duty on refined sunflower oil has been cut from 32.5% to 22.5%.
For crude soybean oil and palm oil, the BCD has been reduced from 10% to 5%. The duty on refined soybean oil and refined palm oil has been lowered from 32.5% to 27.5%.
The ministry said the duty rationalisation takes into account higher international edible oil prices and the resulting increase in domestic landed and retail prices. Since import duties form a significant component of the landed cost of imported edible oils, changes in duty rates can directly affect domestic prices.
The government has, however, retained a duty differential between crude and refined oils. This is intended to support domestic refining capacity and discourage excessive imports of refined oils.
The latest intervention comes as India’s edible oil import bill is expected to increase amid higher import volumes and a weaker rupee.
According to the Solvent Extractors’ Association of India (SEA), India’s edible oil import bill is estimated to rise 9% to around ₹1.75 lakh crore in the current marketing year ending October.
Industry data shows that total vegetable oil imports increased 4% to 138.8 lakh tonnes between November and August of the 2025-26 oil year, compared with 133.37 lakh tonnes during the corresponding period a year earlier. The vegetable oil category includes both edible and non-edible oils.
India primarily sources palm oil from Malaysia and Indonesia, while soybean oil imports largely come from Argentina and Brazil.
The Food Ministry said it would continue to monitor international edible oil markets and domestic prices and take appropriate measures when necessary, while seeking to balance consumer interests with the requirements of farmers and the domestic edible oil industry.