Reduced import tax regime for edible oils to stay till March 2025

The central government has extended the reduced import duty regime on edible oils – refined soyabean oil and refined sunflower oil - till March 25, according to a government order issued on Friday, aimed at curbing food inflation.

The reduced duty, which was set to end in March 2024 but will now continue till March 2025, an official notification from the Finance Ministry said.

The basic import duty on refined soyabean oil and refined sunflower oil was reduced from 17.5% to 12.5%. This reduction in duty will reduce the landed cost of these oils, bringing down the domestic prices.


In November, food inflation rose to 8.70% against 6.61% reported the previous month. Food inflation accounts for nearly half of the overall consumer price basket putting a burden on many households causing worry for the government which is going to face general elections in 2024.

India is the world’s second-largest consumer and number one vegetable oil importer, and it meets 60% of its needs through imports.

A large part of it is palm oil and its derivatives, which are imported from Indonesia and Malaysia. India majorly consumes mustard, palm, soybean, and sunflower-derived edible oils.