Big Relief: Government Reduces Import Duty on Edible Oil by 10%, Mustard Oil Prices Likely to Drop by 4%

In a major relief for Indian households battling soaring kitchen expenses, the central government has slashed the import duty on crude edible oils by 10%. The move is expected to lower retail edible oil prices by 5-6% in the next couple of weeks, providing much-needed relief to consumers.

🔻 Edible Oil Prices Set to Decline

According to Sudhakar Rao Desai, CEO of Emami Agrotech, “Edible oil prices had surged nearly 17% in recent months, but are now showing signs of softening. We expect prices to soon drop to single-digit inflation levels.”

This reduction is expected to have a ripple effect across the entire edible oil market, not just imported oils.

🌻 Mustard Oil to Get Cheaper Too?

A senior executive from an eastern India-based edible oil company noted that wholesale prices have already started cooling down. He emphasized that mustard oil, even though not directly impacted by imports, could see a price drop of 3-4% due to overall market correction.

Given that mustard oil is a staple cooking oil in large parts of India, this change is likely to benefit millions of households.

🏭 Boost to Domestic Refining and 'Make in India'

A crucial aspect of this policy change is its positive impact on India's refining industry. The duty differential between crude and refined oil has widened from 12.5% to 22.5%, making it far more viable for companies to import crude oil and refine it locally.

“This is a game-changing move,” said Keshav Kumar Halder, MD of Halder Venture Ltd. “It supports domestic production, reduces dependence on foreign refined oils, and strengthens the Make in India initiative.”

📉 Refined Oils Like Palm, Sunflower, and Soybean to Become Cheaper

With the import of crude oil now more profitable, domestic retail prices of refined imported oils like palm oil, sunflower oil, and soybean oil are expected to decline. This price drop could also extend to local oils such as rice bran and mustard oil.

Industry insiders estimate a 20-25% rise in capacity utilization for Indian refineries, which will boost employment and enhance self-reliance in edible oil production. This could also save valuable foreign exchange, strengthening India’s overall economy.

⚠️ Disclaimer: The above content is for informational purposes only. Please consult financial experts or government notifications for accurate policy details.