The duty cuts, effective September 24, are aimed at bringing down edible oil prices for consumers ahead of the festive season. By CNBCTV18.com September 24, 2026, 8:08:32 AM IST (Published) 3 Min Read Shares of Patanjali Foods , AWL Agri Business and Godrej Agrovet will be in focus on Thursday, September 24, after the government reduced the basic customs duty on crude and refined edible oils, including palm oil, soyoil and sunflower oil. The duty cuts, effective September 24, are aimed at bringing down edible oil prices for consumers ahead of the festive season.
The basic customs duty on crude palm oil and crude soyoil has been cut to 5% from 10%, while the duty on refined palm oil and refined soyoil has been reduced to 27.5% from 32.5%. For crude sunflower oil, the basic customs duty has been reduced to zero from 10%. The duty on refined sunflower oil has been cut to 22.5% from 32.5%.
In addition to the basic customs duty, edible oil imports into India are subject to the Agriculture Infrastructure and Development Cess and Social Welfare Surcharge. Following the latest changes, the total import duty on crude palm oil and crude soyoil will fall to 11% from 16.5%. Crude sunflower oil will attract a total duty of 5.5%, down from 16.5%.
Why the government cut edible oil import duty The move comes ahead of the festive season, when demand for edible oils typically rises due to higher consumption of sweets, snacks and fried foods. Vegetable oil prices in India have risen nearly 20% over the past year. The duty reduction is expected to put downward pressure on domestic prices and support consumption during the festival period between September and November.
India imports nearly two thirds of its vegetable oil requirement, with palm oil, soyoil and sunflower oil accounting for a significant share of imports. Key suppliers include Malaysia, Indonesia, Argentina, Russia and Ukraine. The duty reduction could also increase Indian demand for imported edible oils, potentially supporting benchmark Malaysian palm oil and US soyoil futures, according to traders.
Sunflower oil is expected to be one of the biggest beneficiaries of the move. Aashish Acharya, vice president at Patanjali Foods, said sunflower oil could become more attractive for refiners following the duty cut, potentially diverting some demand away from soyoil and palm oil. Patanjali Foods flags supply challenges Patanjali Foods has highlighted the challenges facing edible oil supplies, particularly amid disruptions linked to the West Asia crisis.
The company told CNBC TV18 that around 90% of its sunflower oil imports are currently stuck due to the West Asia crisis. It also said the cost of imports has increased due to higher freight and insurance expenses. The duty reduction could therefore provide some relief to refiners and edible oil companies by lowering the landed cost of imported crude oils, although the impact on individual companies will depend on their sourcing mix, inventory levels and ability to pass on lower input costs.
Reuters had reported last week that India was considering a reduction in edible oil import duties to provide relief to consumers ahead of the festive season. “Anticipating a reduction in import duty, refiners had held back on purchases, but they will now step up imports to meet festival season demand,” Sandeep Bajoria, chief executive of vegetable oil brokerage Sunvin Group, told Reuters. Home Market News Here's why Patanjali Foods, AWL Agri and Godrej Agrovet shares will be in focus today
Source: CNBC TV18
