The Indian Vegetable Oil Producers’ Association (IVPA) has welcomed the reduction in edible oil import duties announced by the Government of India. The revised duties took effect on September 24, 2026.
IVPA has also written to its members, asking them to reduce retail prices of cooking oils. The association said the move should help pass the benefit of lower import duties to consumers during the festive season.
IVPA asks members to reduce retail prices
IVPA has urged its members to review retail prices in line with the duty reduction. The association has also asked members to submit edible oil retail price lists to the government every week.
According to IVPA President Sudhakar Desai, the step will support price transparency and help consumers receive the benefit of the policy change.
“We have also written to our members, urging them to pass on the benefit of the duty reduction to consumers through a corresponding reduction in retail prices and to submit their retail price lists to the Government every week.”
Import duties reduced on major edible oils
The government reduced customs duties on key imported edible oils through a notification dated September 23, 2026.
The duty changes include:
- Crude palm oil duty reduced by 5.5% to 11%.
- Crude soybean oil duty reduced by 5.5% to 11%.
- Crude sunflower oil duty reduced by 11% to 5.5%.
IVPA said the edible oil import duties reduction could also narrow the duty arbitrage for imports through Nepal. It may help moderate import volumes and support a more level playing field for domestic importers and refiners.
Festive demand may increase edible oil consumption
IVPA noted that edible oil demand usually rises during the festive period. Demand comes from households, food processing, sweets, snacks and HOECA segments.
The association said lower import costs could help moderate price pressures and support consumption.
Desai also pointed to volatility in global edible oil prices. He said geopolitical uncertainty, weather-related issues and supply constraints linked to the growing use of vegetable oils for biofuel production have affected prices.
IVPA further said that a predictable and calibrated import duty framework remains important for farmers, consumers, refiners and the food processing industry.
