Government Slashes Import Duty on Crude Edible Oil; IVPA Hails Move as Boost for ‘Make in India’

03 June 2025, New Delhi: In a major policy decision aimed at supporting domestic refiners and ensuring fair returns for oilseed farmers, the Government of India has reduced the basic import duty on crude edible oil from 20% to 10%, while keeping the net duty on refined edible oils unchanged at 35.25%. The Indian Vegetable Oil Producers’ Association (IVPA) has welcomed the move, calling it a bold and strategic step to safeguard the Indian edible oil sector.

Sudhakar Desai, President of IVPA, expressed appreciation for the government’s decision, noting that the increased duty differential between crude and refined edible oil—now standing at 19.25%—aligns with the association’s long-standing recommendations.

“This is a significantly bold move towards ensuring ‘Make in India’ and protecting the sector from the influx of refined oils, which has been causing capacity injury to domestic refiners,” Desai said. “It will not only strengthen the domestic refining capacities but also ensure a fair price to oilseed farmers and consumers alike.”

Desai further acknowledged that the persistent efforts by IVPA to bring attention to the growing trade distortions under the South Asian Free Trade Area (SAFTA) framework had played a pivotal role in prompting this policy change.

According to data from IVPA, India witnessed a sharp rise in refined palm oil imports—from 4.58 lakh metric tonnes during June to September 2024 to 8.24 lakh metric tonnes between October 2024 and February 2025. This surge accounted for nearly 30% of the total palm oil imports during the period. The zero-duty benefit under SAFTA provisions had led to a glut of refined oils in Indian markets, putting significant pressure on domestic refineries.

Industry stakeholders believe the revised duty structure will help correct this imbalance, encourage value addition within the country, and reinforce the government’s commitment to building self-reliance in the edible oil sector.

With India being one of the largest importers of edible oil, the decision is expected to have a far-reaching impact on refining operations, price stability, and overall oilseed economy.

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