India mulls higher edible‑oil import duties

India is considering raising import duties on edible oils again to support domestic farmers and the oilseed sector, according to Bloomberg reporting published on May 18. The report said the government is weighing a request from the domestic vegetable-oil industry, days after India raised import tariffs on gold and silver. The move under discussion would reverse part of a tariff cut announced less than a year ago to ease cooking-oil prices. No fresh customs notification on edible oils was visible on government policy pages reviewed on May 18. ### What is India said to be considering? Bloomberg reported on May 18 that India is weighing higher import duties on edible oils to support farmers and local processors. The report said the proposal followed a request from the domestic vegetable-oil industry. No May 18 government order announcing a duty increase was available on the Department of Food and Public Distribution’s edible-oil import policy page. (bloomberg.com) That page still describes the latest published change as the May 30, 2025 reduction in basic customs duty on crude edible oils. ### What are the current duty rates on edible oils? The Department of Food and Public Distribution says India cut the basic customs duty on crude palm, crude soybean and crude sunflower oil on May 30, 2025. (bloomberg.com) The page says that change left the effective duty on crude oils at 16.5%, including the Agriculture Infrastructure and Development Cess. The same government page says refined soybean, refined palm and refined sunflower oils kept a basic customs duty of 32.5%, taking the effective duty on refined oils to 35.75%. (dfpd.gov.in) The department said the lower crude-oil duty was intended to reduce landed costs and retail prices while preserving a duty gap that supports domestic refining. ### Why would New Delhi raise duties after cutting them last year? (dfpd.gov.in) September 17, 2024 is the date of a Press Information Bureau release that explained an earlier edible-oil duty increase as support for domestic oilseed prices. The government said then that higher duties on crude and refined edible oils were meant to bolster oilseed farmers as new soybean and groundnut crops reached markets. (dfpd.gov.in) That release said cheap imports had put pressure on domestic prices and that raising the landed cost of imported oils would help farmers receive better compensation. Bloomberg’s May 18 report said the latest discussions are again centered on support for farmers and the oilseed sector. ### How dependent is India on imported edible oils? India meets more than 70% of its vegetable-oil demand through imports, according to Reuters reporting on the May 30, 2025 duty cut. (pib.gov.in) Reuters said India buys palm oil mainly from Indonesia, Malaysia and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine. The Department of Food and Public Distribution’s policy page shows total edible-oil imports of 160.72 lakh metric tons in 2024-25. The same page lists crude palm oil and palm products as 46.77% of that total, crude soybean oil at 30%, and crude sunflower oil at 18%. ### Why are traders linking this to the gold-duty move? May 13, 2026 is the effective date of India’s latest gold and silver tariff increase, according to Reuters-based reports and other coverage citing customs notifications. (economictimes.indiatimes.com) Those reports said India raised effective import tariffs on gold and silver to 15% from 6%. Bloomberg said the edible-oil proposal would amount to another increase in taxes on a major imported commodity soon after that bullion move. (dfpd.gov.in) Market commentary on social media drew the same comparison, but the only verified published reporting reviewed on May 18 was Bloomberg’s account of internal consideration, not a final decision. (fxstreet.com) ### What should readers watch next? Any duty change would normally appear first in an official customs notification or on a government policy page. The Department of Food and Public Distribution’s edible-oil import policy page and the Central Board of Indirect Taxes and Customs website are the clearest places to watch for the next formal step. (dfpd.gov.in) (bloomberg.com)