Central Government Reduces Import Duty on Edible Oils to Lower Prices and Provide Consumer Relief

The Central Government has decided to reduce the Basic Customs Duty (BCD) on major imported crude edible oils to control prices in the domestic market and provide relief to consumers. This step has been taken with the aim of reducing inflationary pressure caused by the sharp increase in edible oil prices at the international level.

According to the new provisions, the Basic Customs Duty (BCD) on crude sunflower oil has been reduced from 10 percent to zero. Similarly, the BCD applicable to crude soybean oil and crude palm oil has been decreased from 10 percent to 5 percent. The government has also reduced the BCD on refined edible oils; however, to promote domestic refining capacity and prevent the excessive import of refined oils, an import duty difference of 19.25 percent between crude and refined edible oils has been maintained.

According to the Ministry of Consumer Affairs, Food and Public Distribution, import duties constitute a significant portion of the cost of imported oils, which directly impacts domestic retail prices. The reduction in BCD is expected to lower costs, allowing the benefits to reach consumers directly through the domestic supply chain. This move will provide a level playing field for domestic refiners and strengthen the value-addition process within the country.

The government has issued an advisory to edible oil associations and industry stakeholders, urging them to ensure that the full benefit of the import duty reduction is passed on to the consumers. Stakeholders have been requested to immediately revise the Price to Distributor (PTD) and Maximum Retail Price (MRP) based on the reduction in costs.

The government has clarified that it will continue to monitor international edible oil markets and domestic prices, and will continue to implement balanced policy measures as necessary to protect the interests of farmers, domestic industry, and consumers.