Centre Cuts Crude Edible Oil Duties; Prices May Fall Soon

10-Jun-2025 11:29 AM

Mumbai. The Central Government’s decision to halve the basic import duty on crude edible oils—palm oil, soybean oil, and sunflower oil—is expected to make imports cheaper in the coming months. Indian processors may attempt to pass on this cost benefit to common consumers. As the import duty on refined edible oils remains unchanged, domestic refiners will face less competition from imported refined oils.

However, fluctuations in domestic edible oil prices continue to be influenced by price movements in supplier countries. Currently, palm oil prices are relatively soft in Indonesia and Malaysia, contributing to stability in soybean oil prices in Argentina and Brazil. In Brazil, soybean harvesting and post-harvest operations have been completed, while in Argentina, about 15–20 percent of the crop is yet to be harvested. Meanwhile, soybean sowing in the United States is nearing completion.

The sunflower crop in the Black Sea region—Russia, Ukraine, and Romania—is progressing well, and harvesting is expected to begin in a few weeks. Although sunflower oil imports were low in India until April 2025, they saw a rise in May. Crude palm oil imports are also expected to increase during June and July. With palm oil stocks rising in Malaysia, there is likely to be price pressure, prompting Indonesia to keep its prices competitive as well.

Indian refiners are closely monitoring soybean oil prices in Argentina and Brazil. If international prices remain stable or decline further, domestic edible oil prices could see some softening in the near future.