📷 Image: Wikimedia Commons / Prime Minister's Office, Government of India
Business
India Reduces Edible‑Oil Import Duty Ahead of Festive Season
✍️ Livemint
🗓 24 Sep 2026, 02:16 PM
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The government announced a cut in customs duty on edible oil imports to ease price pressures as prices have surged about 20% over the past year.
New Delhi – The Ministry of Commerce and Industry has lowered the customs duty on edible‑oil imports as the country approaches its major festive period. The decision, announced this week, aims to reduce the cost burden on consumers ahead of Diwali, Navratri and other celebrations that traditionally drive higher demand for cooking oil.
India’s edible‑oil prices have risen roughly 20% in the last twelve months, pushing household expenses higher and contributing to overall food‑price inflation. By cutting the import duty, the government hopes to make imported palm, soybean and sunflower oils cheaper, thereby easing retail prices.
Market analysts note that the impact will depend on global oil prices and the speed at which the reduced duty translates into lower wholesale rates. They also point out that domestic production constraints mean imports remain a key source of supply, especially during peak demand.
The move complements recent measures to curb inflation, including tighter monetary policy and targeted subsidies. Officials said the duty reduction is part of a broader strategy to stabilise essential commodity prices as the festive buying season begins.
India’s edible‑oil prices have risen roughly 20% in the last twelve months, pushing household expenses higher and contributing to overall food‑price inflation. By cutting the import duty, the government hopes to make imported palm, soybean and sunflower oils cheaper, thereby easing retail prices.
Market analysts note that the impact will depend on global oil prices and the speed at which the reduced duty translates into lower wholesale rates. They also point out that domestic production constraints mean imports remain a key source of supply, especially during peak demand.
The move complements recent measures to curb inflation, including tighter monetary policy and targeted subsidies. Officials said the duty reduction is part of a broader strategy to stabilise essential commodity prices as the festive buying season begins.