Hopes of Cheaper Edible Oils Fizzle Out: Global Prices Surge, Neutralizing India’s Import Duty Cut

19-Jun-2025 06:42 PM

Hopes of Cheaper Edible Oils Fizzle Out: Global Prices Surge, Neutralizing India’s Import Duty Cut

On May 30, the Indian government slashed the import duty on crude edible oils — including palm, soybean, and sunflower — from 27.5% to 16.5% to control domestic prices. However, the expected relief now appears uncertain as global prices are climbing.

FOB Rates Spike:

The Free-On-Board (FOB) price of crude soybean oil rose by $61/tonne, reaching $1,062/tonne (ex-Kandla).

Crude palm oil increased by $35/tonne, now priced at $1,030/tonne.

Rising futures for palm oil in Malaysia and soybean oil in the US.

Geopolitical tensions between Israel and Iran and fears of increased global diversion of edible oils for biofuel blending have further tightened the market.

Despite the import duty cut, the sharp rise in global rates is offsetting any benefit to Indian consumers.