The Central government on Wednesday reduced the basic customs duty (BCD) on crude Soybean Oil and crude Palm Oil from 10 per cent to 5 per cent and on refined Soybean Oil and refined Palm Oil from 32.5 per cent to 27.5 per cent. Further, the BCD on crude Sunflower Oil has been reduced from 10 per cent to Nil, while the BCD on refined Sunflower Oil has been reduced from 32.5 per cent to 22.5 per cent.
Notification No. 31/2026-Customs dated September 23, 2026 has been issued to carry out the above changes. These are being made effective from 24th September, 2026.
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Consumers To Get Relief
The reduction in basic customs duty is expected to lower retail edible oil prices, offering relief to inflation-hit consumers. It will also encourage the import of crude oils rather than refined ones, thereby giving a push to the domestic refining industry.
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"The purpose of this change is to find a solution to the increase in the prices of edible oils. Along with this, the government has also asked the edible oil associations and people associated with the industry to ensure that the full benefit of the reduced duty is given to the consumers," a statement released by the government read.
This decision of the government will not only make edible oil available to consumers at a lower price but will also help in reducing inflation. The reduced duty will also promote domestic refining.
Citing the government sources, news agency, Reuters, reported that the government had been considering a reduction in import duties as a way to shield consumers from higher edible oil prices. The government also aimed to protect the interests of domestic oilseed farmers.