New Delhi: Retail prices of cooking oils may come down following the government’s decision to reduce import duties on sunflower, soybean and palm oils, the Indian Vegetable Oil Producers’ Association (IVPA) said.
India meets around 60 per cent of its edible oil requirements through imports, making domestic prices sensitive to international commodity prices, exchange rates and global supply conditions.
The government on Wednesday reduced the basic customs duty (BCD) on crude sunflower oil from 10 per cent to zero. The duty on refined sunflower oil was reduced from 32.5 per cent to 22.5 per cent.
For crude soybean oil and crude palm oil, the BCD was cut from 10 per cent to 5 per cent. The duty on refined soybean and palm oils was reduced from 32.5 per cent to 27.5 per cent.
IVPA President Sudhakar Desai said the duty reductions came ahead of the festive season, when demand for cooking oils typically increases among households, sweet and snack manufacturers, food-service businesses and the HORECA segment.
According to Desai, lower import duties could reduce the landed cost of imported edible oils and potentially provide some relief to consumers. He said ensuring adequate availability across the country would be an immediate priority during the upcoming festival months.
Desai also noted that the reduction in sunflower oil duty was relatively larger, which could make the oil more affordable, particularly in South India, a major consuming region.
He said greater flexibility to import sunflower and soybean oil could shift some demand away from palm oil. Palm oil prices are expected to remain relatively firm amid factors including the implementation of B50 biofuel mandates and reduced acreage expansion, he added.
However, Desai cautioned that the final impact on retail prices would depend on several factors, including international commodity prices, freight costs, exchange-rate movements, domestic availability and inventory levels.
According to the Solvent Extractors’ Association of India (SEA), the country's edible oil import bill is estimated to rise 9 per cent to Rs 1.75 lakh crore during the current marketing year ending October, driven by higher import volumes and rupee depreciation.
During November-August of the 2025-26 oil year, total vegetable oil imports increased 4 per cent to 138.8 lakh tonnes from 133.37 lakh tonnes during the corresponding period of the previous year.
Vegetable oil includes both edible and non-edible oils. India primarily imports palm oil from Malaysia and Indonesia, while soybean oil is sourced mainly from Argentina and Brazil.
