Customs Duty Cut by 5% on Crude and Edible Grade of Palm and Soybean oil, and 10% Cut on Sunflower Oil w.e.f 24 Sept. 2026

SNo	Classification	Description	Current BCD	Previous BCD	% Change
41.	1507 10 00	All goods (Crude Soyabean Oil)	5%	10%	5%
42.	1507 90 10	All goods (Edible grade Soyabean Oil)	27.5%	32.5%	5%
46.	1511 10 00	Crude Palm Oil	5%	10%	5%
47.	1511 90	All goods (RBD Palm Oil)	27.5%	32.5%	5%
49.	1512 11 10	All goods (Crude Sunflower Seed Oil)	Nil	10%	10%
50.	1512 19 10	All goods (Sunflower Oil, Edible grade)	22.5%	32.5%	10%

Ahead of the festive season, the Centre has announced major cuts in the Basic Customs Duty (BCD) on edible oils, including palm, soybean, and sunflower oil. The revised duty structure comes into effect on September 24.

According to the notification, the BCD on crude sunflower oil has been completely eliminated from 10%, while the import duty on refined sunflower oil has been reduced from 32.5% to 22.5%, reported news agency PTI.

For crude palm oil and crude soybean oil, the government has halved the basic customs duty from 10% to 5%.

Meanwhile, the rate on their refined counterparts-refined palm oil and refined soybean oil-has been lowered from 32.5% to 27.5%.

The duty slash follows a price reduction earlier in 2025, when duty rates on crude variants were brought down from 20% to 10%.

Festive demand

Industry experts believe the duty cuts arrive at a crucial moment for domestic markets. The Indian Vegetable Oil Producers’ Association (IVPA) highlighted that retail cooking oil prices are expected to cool down just as household consumption and demand from the hotel, restaurant, catering (HORECA), and sweet-manufacturing sectors begin to surge. “Lower import duties should improve the landed costs of imported edible oils, which can provide some reduction in consumer prices,” Sudhakar Desai, president of IVPA was quoted as saying by PTI.

Desai noted that the steeper cut on sunflower oil makes it notably more affordable, particularly across South India, where it sees high consumption.

However, the IVPA cautioned that final retail relief will depend on broader market variables, including global commodity trends, ocean freight rates, currency fluctuations, and existing inventory levels.

[Notification No. 31/2026-Customs dated 23 September, 2026]

Seeks to modify Basic Customs Duty (BCD) on crude and refined edible oils.

G.S.R……(E). - In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and sub-section (12) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue) No. 45/2025-Customs, dated the 24th October, 2025, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 781(E), dated the 24th October, 2025, namely: -

In the said notification, in TABLE I, -

(i) against S. No. 41, in column (4), for the entry “10%”, the entry “5%” shall be substituted;

(ii) against S. No. 42, in column (4), for the entry “32.5%”, the entry “27.5%” shall be substituted;

(iii) against S. No. 46, in column (4), for the entry “10%”, the entry “5%” shall be substituted;

(iv) against S. No. 47, in column (4), for the entry “32.5%”, the entry “27.5%” shall be substituted;

(v) against S. No. 49, in column (4), for the entry “10%”, the entry “Nil” shall be substituted;

against S. No. 50, in column (4), for the entry “32.5%”, the entry “22.5%” shall be substituted.

2. This notification shall come into force on the 24th day of September, 2026.

[F. No. CBIC-190354/134/2026-TRU]