Import duty on crude sunflower oil cut to Nil, on crude soybean and crude palm oil to 5% from 24 September 2026: Notification 31/2026-Customs
The Government has cut Basic Customs Duty on crude sunflower oil from 10% to Nil and on crude soybean and crude palm oil from 10% to 5%, with matching cuts on the refined oils. Notification No. 31/2026-Customs amends six entries of Notification No. 45/2025-Customs and is in force from 24 September 2026. Industry has been asked to pass the benefit on in prices.
Key facts
In 30 seconds
- Notification No. 31/2026-Customs is dated 23 September 2026 and came into force on 24 September 2026.
- It amends six serial numbers (41, 42, 46, 47, 49 and 50) in Table I of Notification No. 45/2025-Customs dated 24 October 2025.
- As per the Government’s press release: crude sunflower oil 10% to Nil; crude soybean oil and crude palm oil 10% to 5%.
- Duty on the respective refined oils has been reduced at the same time; the release says an import duty differential of 19.25% between crude and refined oils is maintained.
- Edible oil associations and companies have been asked to revise Price to Distributors and MRP immediately.
हिंदी में सार
सरकार ने Notification 31/2026-Customs (23 सितंबर 2026) से खाने के तेलों पर Basic Customs Duty घटाई है, जो 24 सितंबर 2026 से लागू है। कच्चे सूरजमुखी तेल पर शुल्क 10% से शून्य और कच्चे सोयाबीन व कच्चे पाम तेल पर 10% से 5% कर दिया गया है; रिफ़ाइंड तेलों पर भी शुल्क घटा है और कच्चे व रिफ़ाइंड के बीच 19.25% का अंतर बनाए रखा गया है। सरकार ने तेल कंपनियों से कहा है कि वे PTD और MRP तुरंत घटाकर पूरा लाभ उपभोक्ताओं तक पहुँचाएँ।
Before and now
Crude sunflower oil 10%; crude soybean oil 10%; crude palm oil 10%.
Crude sunflower oil Nil; crude soybean oil 5%; crude palm oil 5% — from 24 September 2026.
What has changed
By Notification No. 31/2026-Customs dated 23 September 2026, the Central Government has amended Notification No. 45/2025-Customs dated 24 October 2025. The amendment is made under section 25(1) of the Customs Act, 1962 and section 3(12) of the Customs Tariff Act, 1975, and came into force on 24 September 2026.
A press release of the Ministry of Consumer Affairs, Food & Public Distribution, issued on 24 September 2026, names the oils and the cut in Basic Customs Duty (BCD):
| Oil | BCD earlier | BCD now |
|---|---|---|
| Crude sunflower oil | 10% | Nil |
| Crude soybean oil | 10% | 5% |
| Crude palm oil | 10% | 5% |
The release adds that the BCD on the respective refined edible oils has been reduced simultaneously, while an import duty differential of 19.25% between crude and refined edible oils is maintained. It does not list the refined-oil rates oil by oil.
The six entries in the notification
The notification itself does not name the goods. It changes the rate in column (4) of Table I of Notification No. 45/2025-Customs against six serial numbers:
| S. No. in Table I | Earlier entry | New entry |
|---|---|---|
| 41 | 10% | 5% |
| 42 | 32.5% | 27.5% |
| 46 | 10% | 5% |
| 47 | 32.5% | 27.5% |
| 49 | 10% | Nil |
| 50 | 32.5% | 22.5% |
The principal notification was last amended by Notification No. 25/2026-Customs dated 8 July 2026.
Why the Government did it
According to the release, the cut is meant to moderate domestic edible oil prices and ease inflationary pressure after a sharp increase in international edible oil prices, which pushed up landed costs and retail prices. Import duty is an important part of the landed cost of imported edible oil.
The gap between crude and refined oils has been kept, the release says, to support the use of domestic refining capacity and to discourage excessive imports of refined edible oils.
Advisory to the industry
The Government has issued an advisory to edible oil associations and industry stakeholders to pass on the full benefit of the duty cut to consumers. They have been requested to immediately revise their Price to Distributors (PTD) and Maximum Retail Price (MRP) in line with the lower landed cost, and associations have been asked to advise their members to cut prices without delay.
What importers and traders should do
- Apply the new rates to imports from 24 September 2026, reading them against the serial number of Notification No. 45/2025-Customs under which the oil is cleared.
- Edible oil companies should act on the Government’s request to revise PTD and MRP.
- The Government has said it will keep monitoring international and domestic prices and take further measures as necessary.
Questions and answers
What is the customs duty on crude sunflower oil now?
As per the Government’s press release of 24 September 2026, the Basic Customs Duty on crude sunflower oil has been reduced from 10% to Nil.
What is the new duty on crude soybean oil and crude palm oil?
The Basic Customs Duty on both has been reduced from 10% to 5%.
Has the duty on refined edible oils also been cut?
Yes. The release says the BCD on the respective refined edible oils has been reduced at the same time, keeping an import duty differential of 19.25% between crude and refined oils. Notification No. 31/2026-Customs lowers three entries of 32.5% to 27.5%, 27.5% and 22.5%.
From which date do the new rates apply?
Notification No. 31/2026-Customs came into force on 24 September 2026.
Will retail prices come down?
The Government has asked edible oil associations and companies to immediately revise their Price to Distributors and MRP so that the full benefit of the duty cut reaches consumers.
Published 23 September 2026. Updated 9 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.