India considers cutting import duties on vegetable oils

India is considering lowering import duties on vegetable oils in an effort to curb rising food prices. Domestic vegetable oil prices have increased by nearly 20% over the past year, Reuters reported, citing government and industry sources.

One option under consideration is a 5 percentage point cut in the basic import duty. According to market participants, such a move could reduce the cost of imported oils while keeping domestic soybean prices above the government-set support level.

India meets about two-thirds of its vegetable oil demand through imports. The main products are palm oil, soybean oil and sunflower oil, sourced from Malaysia, Indonesia, Argentina, Russia and Ukraine.

A possible duty cut would come during the seasonal rise in demand from September to November. Analysts expect cheaper imports could boost consumption in India and support global palm oil and soybean oil prices.

In May 2025, India already halved the basic import duty on crude edible oils to 10%. The total import duty on crude palm oil, crude soybean oil and crude sunflower oil subsequently stood at 16.5%.

Tags: import duties, India, edible oils