Industry body urges cooking oil firms to pass on import duty cut to consumers as festive season nears

Kolkata: The Indian Vegetable Oil Producers’ Association (IVPA) has asked edible oil companies to cut retail prices and pass on the benefit of the government’s recent import duty reduction to consumers ahead of the festive season, as cooking oil demand is set to rise across households, sweet makers, food processors and restaurants.

The industry body has also asked its members to submit their retail edible oil prices to the government every week, in a move aimed at ensuring greater transparency and monitoring whether the duty benefit is reaching consumers.

Also Read: India's sunflower oil imports seen up 30% on duty cut, industry official says


The government, through a September 23 notification, reduced customs duty on major imported edible oils, effective September 24. The duty on crude palm oil and crude soybean oil was cut by 5.5 percentage points to 11%, while the duty on crude sunflower oil was reduced by 11 percentage points to 5.5%.

“We have 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,” said Sudhakar Desai, president, IVPA.

The move comes at a time when edible oil prices have remained volatile amid geopolitical uncertainty, weather-related disruptions, supply constraints and the increasing diversion of vegetable oils towards biofuel production.

“We thank the government for this timely intervention, particularly as the country approaches the festive season, when edible oil consumption witnesses an increase,” Desai said, adding that the duty reduction would provide relief to consumers facing pressure on household budgets.

The duty cut is also expected to reduce the arbitrage available on imports routed through Nepal and moderate the recent surge in such imports, according to IVPA. The association said this could help create a more level playing field for domestic importers and refiners while improving transparency and fair competition in the edible oil market.

The timing of the reduction assumes significance as demand typically picks up during the festive season across households as well as the food processing, sweets, snacks and hotel, restaurant and catering segments. Lower import costs could help moderate retail prices and support consumption.

Also Read: Retail prices of cooking oils may fall after duty cut: Industry body IVPA

IVPA said global edible oil prices have witnessed considerable volatility over the past six to 12 months. It also flagged rising domestic price pressures, noting that consumer price inflation reached 4.8% in August 2026, with some edible oils registering sharp price increases.

The association has also called for a predictable and calibrated import duty regime, saying policy stability is important for the entire value chain, including farmers, consumers, refiners and the food processing industry.