Most of the edible oil companies have reduced maximum retail price (MRP) and Price to Distributor (PTD) after the Centre announced a drastic reduction in basic customs duty of imported crude edible oils, the Government said on Wednesday. On May 30, it cut the levy from 20 per cent to 10 per cent. . Also, many other processing units have assured the government to further cut prices over the next few days, as they continue to receive lower-cost shipments of crude oils under the revised duty structure.

The retail inflation of oil and fat, which has weight of 3.56 in the consumer price index (CPI), recorded 17.91 per cent jump in May 2025, against (-)6.71 per cent year-ago, official data show. The retail inflation in mustard oil was 19.61 per cent, in groundnut oil (-) 1.77 per cent, coconut oil 78.04 per cent, refined oil (sunflower, soyabean, saffola) 24.27 per cent and vanaspati 21.32 per cent.

On June 11, Sanjeev Chopra, Secretary in the Department of Food and Public Distribution (DoFPD), met with leading edible oil industry associations and representatives of manufacturers. Chopra advised the industry to pass on the benefits of the duty reduction to consumers with immediate effect. The associations were asked to advise their members to implement immediate price reductions and share the updated brand-wise MRP sheets with the Department on a weekly basis in a prescribed format.

Inspections’ objective

Officials from the Department of Food and Public Distribution (DoFPD) conducted a series of comprehensive inspection visits to key edible oil refining and processing facilities over the past few days in Maharashtra, Andhra Pradesh, Madhya Pradesh and Gujarat, where maximum number of units are located. The inspection covered major port-based edible oil refineries and inland processing plants that import Crude Palm Oil (CPO), Crude Soybean Oil, and Crude Sunflower Oil, the food ministry said in a statement.

The inspections were aimed at ensuring the benefits of import duty reduction on edible oils are passed on to consumers of mainly refined category of sunflower oil, soybean oil, and RBD palmolein.

A majority of the inspected units have already reduced both MRP and PTD in response to the reduction in landed cost of imported crude edible oils, made possible due to the recent rationalisation of import duties, it said. Several processing units have conveyed their commitment to implement further reductions in prices in the next few days, as they continue to receive lower-cost shipments of crude oils under the revised duty structure, it said.

“The initiative has helped stabilise prices in the edible oil market, and early signs suggest that the benefits are gradually reaching end consumers through lower retail prices,” the ministry said.

Gesture lauded

The Department appreciated the proactive cooperation extended by edible oil refineries and manufacturers in implementing the price cuts and aligning with the government’s objective of protecting consumer interests.

Without listing measures, the statement said the government has taken several policy measures to curb inflationary trends in edible oil prices in recent months. “A major step included reducing the import duty on various crude edible oils to lower the overall landed cost,” it said adding these steps are part of a broader strategy to maintain price stability and ensure essential commodities remain affordable for the common man.

The Department will continue to closely monitor the situation and conduct periodic reviews to ensure that the benefits of lower import duties translate effectively into lower consumer prices across the country, it said. “Any anomalies or delays in passing on the price benefits will be addressed through appropriate regulatory actions,” it warned.

The government on May 30 cut the effective import duty on crude edible oils such as palm, soyabean and sunflower oil to 16.5 per cent overall from 27.5 per cent, with effect from next day. As the industry was demanding the gap between crude and refined oils to be minimum 20 per cent, after the duty cut it will be at 19.25 per cent as the refined oil duty kept at same level of 35.75 per cent.

Published on June 18, 2025