Customs Duty Cuts Expected to Boost Sunflower Oil Imports

Mumbai: The central government has reduced the basic import duty on crude sunflower oil from 10 percent to zero percent and on refined sunflower oil from 32.5 percent to 22.5 percent. India primarily imports crude sunflower oil, although there are some duty-free imports of sunflower oil from Nepal.

According to the Solvent Extractors' Association of India (SEA), a leading industry body, sunflower oil imports are expected to surge by approximately 30 percent to reach 3.5 million tonnes in the 2026-27 marketing season (November-October) due to the duty cuts; conversely, soybean oil imports are likely to decline by 10.7 percent to around 5 million tonnes. The near-elimination of customs duty will make crude sunflower oil imports cheaper, and the resulting softening of domestic market prices is expected to drive up demand and consumption.

As for palm oil, imports are likely to remain largely normal or stable. According to the association, the country could import approximately 8 million tonnes of palm oil in the 2026-27 marketing season. The decision to cut import duties on edible oils came into effect on September 24, while the current marketing season ends on October 31; therefore, it will not have a significant impact on edible oil imports during the ongoing season. However, a substantial difference may be observed in the upcoming marketing season.