3-5 percent increase in import price (cost) of edible oils

25-Jun-2025 06:26 PM

Mumbai. Despite the reduction in customs duty, the import cost of edible oils in India is increasing due to the rise in prices in exporting countries.

According to industry analysts, the import duty on edible oils increased by 3 to 5 percent during the week of June 20 as compared to the week of June 13.

According to analysts, the government has reduced the basic import duty on all three major edible oils of the crude category - palm oil, soybean oil and sunflower oil by half from 20 percent to 10 percent so that the cost of its import in India is reduced and the common consumers can get its benefit. The government took this step with the aim of controlling the rise in the domestic market price of edible oil.

In fact, the inflation rate based on the Consumer Price Index has remained at a very high level for most edible oils since January 2025, while overall food inflation has declined.

As a result, the need to make the import of edible oils cheaper was felt. Earlier, the indigenous vegetable oil industry and especially the refiners were demanding the government to keep a 20 percent difference between the import duty on crude and refined edible oils.

In view of this, the government maintained the total import duty on refined edible oils at 35.75 percent and reduced it from 27.5 percent to 16.5 percent on crude edible oils.

This provided some relief to the refiners for some time, but soon the price of palm oil and soybean oil increased in the major supplier countries, which ended the relief being provided to the refiners.

But now the price of soybean oil in Brazil, Argentina and America and palm oil in Malaysia and Indonesia is likely to soften because the war between Iran and Israel is almost over.