India Cuts Edible Oil Duties Amid Rising Global Prices

The Indian government has reduced the Basic Customs Duty (BCD) on major imported edible oils from September 24, 2026. The move aims to moderate edible-oil prices and food inflation in the country.

The BCD reduction comes as international vegetable oil prices have been increasing. The FAO Food Price Index's vegetable oil sub-index averaged 196.9 points in August 2026, up 0.6% from July and its highest level since June 2022.

Higher prices of palm oil and soybean oil contributed significantly to the increase, with palm-oil prices influenced by strong global demand and concerns about production conditions in Southeast Asia.

The government has retained a 19.25 percentage-point duty differential between crude and refined edible oils, intended to maintain an economic incentive for domestic refineries to process crude edible oils within India.