Possibility of Hike in Import Duties on Edible Oils

19-May-2026 12:58 PM

New Delhi: It is understood that, acting upon a request from the domestic vegetable oil industry, the government is considering raising import duties on edible oils. Although both domestic and global market prices for edible oils are currently hovering at significantly high levels, there has been no decline in their demand or consumption. The Prime Minister has appealed to the public to reduce their usage of edible oils.

According to experts, India is the world's leading importer of edible oils. An increase in import duties here would drive edible oil prices even higher, thereby providing domestic oilseed farmers with an opportunity to secure remunerative prices for their produce. The importation of edible oils entails the expenditure of a massive amount of precious foreign currency.

While no decision regarding an increase in import duties has been taken yet, the possibility remains. The government aims to curb the outflow of precious foreign currency, as its heavy depletion has exerted immense pressure on the value of the Rupee. The value of one US dollar has neared the 96-Rupee mark, a development that has begun to make imports more expensive.

India's reliance on imported edible oils has surged to nearly 60 percent. This massive volume of imports consumes foreign currency worth billions of rupees, while Indian farmers are compelled to wage a difficult struggle to secure remunerative prices for their oilseeds. Nevertheless, the market prices for mustard, soybean, and groundnut are currently trading above the government's Minimum Support Price (MSP).