Ahead of the festive season, the Centre has announced major cuts in the Basic Customs Duty (BCD) on edible oils, including palm, soybean, and sunflower oil. The revised duty structure comes into effect on September 24.

According to the notification, the BCD on crude sunflower oil has been completely eliminated from 10%, while the import duty on refined sunflower oil has been reduced from 32.5% to 22.5%, reported news agency PTI.

For crude palm oil and crude soybean oil, the government has halved the basic customs duty from 10% to 5%.

Story continues below.
Subscribe to see fewer ads.

Meanwhile, the rate on their refined counterparts-refined palm oil and refined soybean oil-has been lowered from 32.5% to 27.5%.

The duty slash follows a price reduction earlier in 2025, when duty rates on crude variants were brought down from 20% to 10%.

Festive demand

Industry experts believe the duty cuts arrive at a crucial moment for domestic markets. The Indian Vegetable Oil Producers’ Association (IVPA) highlighted that retail cooking oil prices are expected to cool down just as household consumption and demand from the hotel, restaurant, catering (HORECA), and sweet-manufacturing sectors begin to surge. “Lower import duties should improve the landed costs of imported edible oils, which can provide some reduction in consumer prices,” Sudhakar Desai, president of IVPA was quoted as saying by PTI.

Desai noted that the steeper cut on sunflower oil makes it notably more affordable, particularly across South India, where it sees high consumption.

Story continues below this ad

However, the IVPA cautioned that final retail relief will depend on broader market variables, including global commodity trends, ocean freight rates, currency fluctuations, and existing inventory levels.