The Union government on September 24, 2026, reduced the Basic Customs Duty (BCD) on major imported crude edible oils ahead of the festival season. This aims to moderate domestic edible oil prices and provide relief to consumers amid rising international prices that add inflationary pressure.
Under the revised duty structure, the BCD on crude sunflower oil has been reduced from 10% to nil, while duties on crude soybean oil and crude palm oil have been lowered from 10% to 5%. The government intends for these reductions to lower the landed cost of these oils and pass the benefits through the supply chain to wholesalers, retailers, and consumers.
The timing is significant as edible oil consumption typically rises during the festival season, increasing price pressures. Lower import duties make imported crude oils cheaper, potentially improving domestic availability and helping suppliers manage higher demand.
The government said this move is aimed at mitigating inflationary pressures from global price rises and supporting consumer welfare. Additionally, the duty adjustment seeks to maintain market stability and ensure adequate supplies of this essential food commodity during a period of heightened consumption.
