India Lowers Basic Customs Duty on Key Crude Edible Oils to Ease Inflation

In a bid to temper the upward pressure on food prices, the central government has slashed the basic customs duty on several primary crude edible oils. Effective immediately, crude sunflower oil will face a 0% BCD, and crude soybean and palm oils will be charged at a reduced 5%.

The reduction is part of a broader strategy to manage the spike in global oil markets, which has been translating into higher import costs and, subsequently, higher retail prices in India.

The policy also trims duties on refined oils but deliberately preserves a 19.25% differential between crude and refined duties to protect the domestic refining industry from a surge in cheap imports.

Officials indicated that the tariff cut should lower the landed cost of imported oils, allowing the benefits to cascade through the supply chain and provide tangible relief to consumers.

The government has called on industry stakeholders to ensure the price advantage reaches households quickly, thereby contributing to overall inflation containment.