Current affairs · September 2026

Government cuts import duty on crude edible oils to ease prices

24 Sept 2026 · By the PrepMatic team · 2 min read

On 24 September 2026 the Government of India reduced the Basic Customs Duty (BCD) on major crude edible oils to moderate domestic prices, give consumers relief and limit inflationary pressure from a sharp rise in international edible oil prices. The announcement came from the Ministry of Consumer Affairs, Food and Public Distribution.

New duty rates

The BCD on the corresponding refined oils was also reduced. The government kept the 19.25% import duty differential between crude and refined edible oils. The differential supports domestic refining and discourages heavy imports of refined oil.

Pass-on advisory

The government asked edible oil associations and industry stakeholders to make sure the full benefit of the lower duty reaches consumers. Industry has been asked to revise its Price to Distributors (PTD) and Maximum Retail Price (MRP) in line with the lower landed cost, and associations were asked to advise members to cut prices without delay.

Import duty is a major part of the landed cost of imported edible oils, which is why a duty cut changes retail prices. It also links to food inflation, which stood at 5.95% in the latest CPI release (see CPI inflation for August 2026).

Why it matters for exams

Customs duty changes and inflation-control measures are common in economy questions for TNPSC general studies and banking awareness sections of IBPS, SBI and RBI Grade B. Check the Indian economy guide for the difference between customs duty and other indirect taxes.

Practice questions

Question 1

What is the new Basic Customs Duty on crude sunflower oil after the September 2026 reduction?

• A. Nil
• B. 5%
• C. 10%
• D. 19.25%

Question 2

What import duty differential between crude and refined edible oils was maintained?

• A. 5%
• B. 10%
• C. 15.5%
• D. 19.25%

Answers

1. A. Crude sunflower oil duty was cut from 10% to nil.
2. D. The 19.25% differential was kept to support domestic refiners.

Source

Government Cuts Import Duty on Major Edible Oils to Provide Relief to Consumers (PIB, Ministry of Consumer Affairs, Food and Public Distribution, 24 September 2026).

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