India reduces customs duties on oil imports

The Ministry of Finance announced changes to the base customs duty rates. The levies on crude soybean and palm oils were reduced from 10% to 5%, and on refined counterparts from 32.5% to 27.5%. The duty on crude sunflower oil was completely abolished (previously at 10%), while for refined sunflower oil it was lowered to 22.5% from 32.5%. These measures are intended to reduce the cost of vegetable oils on the domestic market.

The Solvent Extractors' Association of India (IVPA) noted the timeliness of the step ahead of the festive season, which is accompanied by high demand from households and the HORECA segments. IVPA President Sudhakar Desai pointed out that final retail prices will depend not only on the duties, but also on global market trends, freight costs, exchange rates, and domestic stock volumes. At the same time, he drew attention to the ongoing pressure of duty-free imports from Nepal on the northern regions of the country.

The Solvent Extractors' Association of India (SEA) at a meeting with authorities on September 21 pointed to the potential volatility of the global sector. SEA President Sanjeev Asthana emphasized that the balance in the vegetable oil market could be altered by factors such as the impact of El Niño, the uncertainty of sunflower oil supplies due to the Russia-Ukraine conflict, and the B50 biodiesel program in Indonesia, which will increase the strategic role of soybean and soybean oil.

According to SEA statistics, during the first 10 months of the 2025–26 oil year (November–October), imports of vegetable oils to India grew by 4.56% and reached 136.19 million tonnes (in the previous season for the same period, it was 130.24 million tonnes). Growth was recorded across all key positions: palm oil supplies increased to 65.34 million tonnes, soybean to 45.61 million tonnes, and sunflower to 25.15 million tonnes.