India Cuts Import Duty on Palm and Soybean Oils

India reduced the basic customs duty on several edible oils on 23 September 2026, and the revised rates became effective from 24 September 2026. The changes cover crude and refined palm oil, crude and refined soybean oil, and crude and refined sunflower oil.

Basic Customs Duty on Edible Oils

Basic customs duty is a customs levy imposed on imported goods under the Customs Act, 1962. In this case, the duty on crude palm oil and crude soybean oil was reduced from 10% to 5%, while the duty on refined palm oil and refined soybean oil was reduced from 32.5% to 27.5%.

Sunflower Oil Duty Changes

The basic customs duty on crude sunflower oil was reduced from 10% to nil. The duty on refined sunflower oil was lowered from 32.5% to 22.5%.

Import Duty Structure and Supply Context

India applies additional levies such as the Agriculture Infrastructure and Development Cess and Social Welfare Surcharge on imported edible oils. After these additions, the total import duty on crude palm oil and crude soy oil is 11%, and the total duty on crude sunflower oil is 5.5%.

Important Facts for Exams

• Basic customs duty is a central tax collected on imported goods at the time of clearance into India.
• Agriculture Infrastructure and Development Cess is levied on specified imports to support agricultural infrastructure and related expenditure.
• India imports nearly two-thirds of its vegetable oil requirement, with palm oil, soybean oil, and sunflower oil forming major import items.
• Malaysia, Indonesia, Argentina, Russia, and Ukraine are major suppliers of edible oils to India.

Edible Oil Import Dependence

India depends heavily on imported vegetable oils for domestic consumption, and palm oil forms the largest share of these imports. The September-November festive season is a period of higher edible oil demand in India.