Government cuts import duty on crude edible oils: sunflower to nil, soybean and palm to 5%
On 24 September 2026 the Government reduced the Basic Customs Duty on crude sunflower oil from 10% to nil and on crude soybean and crude palm oil from 10% to 5% to moderate domestic edible oil prices.
Summary
The cut responds to a sharp rise in international edible oil prices and the resulting increase in landed costs and retail prices. BCD on the respective refined oils was also reduced, while the 19.25% import duty differential between crude and refined edible oils was kept to support domestic refining.
Key facts
- Crude sunflower oil
- BCD 10% to nil
- Crude soybean and palm oil
- BCD 10% to 5%
- Refined oils
- BCD also reduced; 19.25% crude-refined differential maintained
- Reason
- Rise in international edible oil prices; relief to consumers, curb inflation
Practice MCQs 3 questions
To what level was the Basic Customs Duty on crude sunflower oil cut on 24 September 2026?
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Correct answer: D — Nil
BCD on crude sunflower oil was cut from 10% to nil; crude soybean and palm oil went from 10% to 5%.
What import duty differential between crude and refined edible oils did the Government maintain while cutting duties in September 2026?
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Correct answer: B — 19.25%
A 19.25% differential between crude and refined edible oils was maintained to support domestic refining.
Consider the following statements about the edible oil duty cut of 24 September 2026: 1. The Basic Customs Duty on crude palm oil was cut from 10% to 5%. 2. Duties on refined edible oils were left unchanged. Which of the above is/are correct?
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Correct answer: A — 1 only
Statement 1 is correct. Statement 2 is wrong: BCD on the respective refined oils was also reduced, keeping the 19.25% differential.