India Aims to Boost Edible Oil Processing Sector by Reducing Import Duties

India is one of the world's largest consumers of edible oil, with palm oil being the most popular. A significant portion of the country's domestic demand is met through imports, primarily from Malaysia and Indonesia. Changes in import duties typically have a notable impact on the industry. The Indian government recently reduced import duties on key raw edible oils. According to ICRA's analysis, this step is expected to provide a significant boost to the sector. The duty reduction aims to support domestic food oil processors, improve capacity utilization, reduce working capital pressure, and ultimately lower prices for end consumers. On May 30, 2025, New Delhi lowered the basic customs duty (BCD) on raw edible oils, including palm, sunflower, and soybean, from 20% to 10%. As a result, the effective import duty on raw edible oils sharply dropped to 16.5% from 27.5%. In contrast, the import duty on refined edible oils remained unchanged at 35.75%. This created a historically high ...