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India, the world's largest importer of vegetable oils, is considering cutting import duties to curb food inflation ahead of the September-November festive season, Reuters reported on 16 September 2026.
Vegetable oil prices are up nearly 20% year-on-year; retail inflation rose to 4.82% in August 2026 with food inflation at 5.95%.
Industry has suggested a 5-percentage-point cut in basic duty rather than a deeper one, to keep domestic soybean prices above support levels.
The current basic duty on crude palm, soybean and sunflower oil is 10% (effective 16.5%), since the May 2025 halving.
Expand oil palm cultivation, focus on the North-East and Andaman & Nicobar
Key: Launched 2021; outlay Rs 11,040 crore
Raise primary oilseed output from 39 million tonnes (2022-23) to 69.7 million tonnes by 2030-31
Key: Approved by Cabinet 3 October 2024; Rs 10,103 crore; 2024-25 to 2030-31
GS Paper 3 > Agriculture: cropping patterns, food security; Inflation
General Awareness > Economy, inflation
Consider the following statements: 1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years. 2. The Government does not impose any customs duty on all the imported edible oils as a special case. Which of the statements given above is/are correct?
Answer: 1 only
With reference to 'palm oil', consider the following statements: 1. The palm oil tree is native to Southeast Asia. 2. The palm oil is a raw material for some industries producing lipstick and perfumes. 3. The palm oil can be used to produce biodiesel. Which of the statements given above are correct?
Answer: 2 and 3 only
The core import duty under the Customs Tariff; cesses and surcharges are added on top
Agriculture Infrastructure and Development Cess, levied on imports including edible oils
Consumer Food Price Index, the food-inflation component of CPI