The Ministry of Consumer Affairs, Food and Public Distribution has reduced the Basic Customs Duty (BCD) on major imported crude edible oils (crude sunflower, soybean, and palm oils) from 20% to 10%. This measure aims to lower edible oil prices for consumers, which had risen due to a previous duty hike in September 2024 and increased international market prices. The government has issued an advisory to edible oil associations and industry stakeholders to ensure that the full benefit of the reduced duty is passed on to consumers. The reduction is also intended to encourage domestic refining capacity utilization by maintaining a 19.25% duty differential between crude and refined edible oils, discouraging refined oil imports and strengthening the domestic refining sector. Industry stakeholders are expected to adjust prices to distributors (PTD) and maximum retail prices (MRP) to reflect the lower landed costs, with associations requested to share updated MRP sheets weekly with the Department of Food and Public Distribution (DFPD).
Key Entities Referenced
Ministry of Consumer Affairs, Food Public Distribution: The government ministry responsible for the policy change regarding edible oil duties.
Basic Custom duty BCD: Refers to the Basic Custom Duty. An import duty applied on goods.
Crude edible Oils: The category of oils that are subject to the reduced duty.
PIB Delhi: Press Information Bureau, Delhi - likely the source of the press release.
crude sunflower, soybean, and palm oils: Specific examples of crude edible oils.
September 2024: The month when a previous duty hike occurred, contributing to price increases.
Edible Oil Industry Associations: Groups representing companies in the edible oil industry, who are expected to pass on the duty reduction benefits to consumers.
Government of India: The governing body of India.
Secretary, Department of Food and Public Distribution: The chair of the meeting with edible oil industry associations.
Price to Distributors PTD: The price at which the edible oil companies are expected to sell to distributors.
Maximum Retail Price MRP: The maximum price at which the edible oils can be sold to the end consumer.
DFPD: Department of Food and Public Distribution. The department shared the format with the edible oil industry for data on reduced MRP and PTD.
Crude Palm Oil: A specific type of Crude Edible Oil.
Abhishek DayalNihi Sharma: Likely the names of individuals involved in the release of the information.
Ministry of Consumer Affairs, Food & Public Distribution
Centre reduces Basic Custom duty (BCD) on major
imported Crude edible Oils from 20% to 10%
Posted On: 11 JUN 2025 6:34PM by PIB Delhi
Centre has reduced the Basic Customs Duty (BCD) on crude edible oils namely crude sunflower, soybean,
and palm oils has been reduced from 20% to 10% resulting in the import duty differential between crude and
refined edible oils from 8.75% to 19.25%.
This adjustment aims to address the escalating edible oil prices resulting from the September 2024 duty hike
and concurrent increases in international market prices. An advisory has been issued to edible oil associations
and industry stakeholders to ensure that the full benefit of the reduced duty is passed on to consumers.
19.25% duty differential between crude and refined oils helps to encourage domestic refining capacity
utilization and reduce imports of refined oils.
Import duty on edible oils is one of the important factors that impacted landed cost of edible oils and thereby
domestic prices. By lowering the import duty on crude oils, the government aims to reduce the landed cost
and retail prices of edible oils, providing relief to consumers and helping to cool overall inflation. The reduced
duty will also encourage domestic refining and maintain fair compensation for farmers.
The revised duty structure will discourage the import of refined Palmolein and redirect demand towards Crude
Edible Oils Especially Crude Palm Oil, thereby strengthening and revitalizing the domestic refining sector.
This significant policy intervention not only ensures a level playing field for domestic refiners but also
contributes to the stabilization of edible oil prices for Indian consumers.
A meeting with leading Edible Oil Industry Associations and industry was held under the Chairmanship of
Secretary, Department of Food and Public Distribution, Government of India, and advisory was issued to
them to pass on the benefits from this duty reduction on to consumers. Industry stakeholders are expected to
adjust the Price to Distributors (PTD) and the Maximum Retail Price (MRP) in accordance with the lower
landed costs with immediate effect. The Associations have been requested to advise their members to
implement immediate price reductions and share the updated brand-wise MRP sheets with the Department on
a weekly basis. DFPD shared the format with edible oil industry for sharing the reduced MRP and PTD data.
The timely transmission of this benefit to the supply chain is imperative to ensure that consumers experience a
corresponding decrease in retail prices.
This decision comes after a detailed review of the sharp rise in edible oil prices following last year’s duty
hike. The increase led to significant inflationary pressure on consumers, with retail edible oil prices soaring
and contributing to rising food inflation.
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Abhishek Dayal/Nihi Sharma
(Release ID: 2135774)