Athira Sethu
Kochi, 25 Sep 2026
There can be an impact on edible oil and FMCG (Fast Moving Consumer Goods) sector following reduction in BCD (Basic Customs Duty) for imported palm oil, soybean oil and sunflower oils. These rates have been revised effective from September 24.
It would definitely reduce the cost of imports of edible oils. It may also result in lowering of input cost for companies using these oils as raw material.
Changes Made in Import Duty for Edible Oils
Import duty has been lowered on both crude as well as refined edible oils:
Sunflower Crude Oil – duty has been brought down to 0% from 10%
Sunflower Refined Oil – duty has been cut to 22.5% from 32.5%
Soybean Crude Oil – duty has been reduced to 5% from 10%
Palm Crude Oil – duty has been cut to 5% from 10%
Soybean and Palm Refined Oils – duty has been lowered to 27.5% from 32.5%
Potential Beneficiary Companies
AWL Agri Business, Godrej Agrovet and Patanjali Foods are some of the beneficiary companies in edible-oils sector following reduction in duty for imported crude oils.
FMCG and food companies will also benefit from lower cost of imports since edible oils serve as raw material for many of the products. Britannia Industries, HUL, Marico, Nestlé India, Bikaji Foods, Godrej Consumer Products, Dabur India and Jyothy Labs are few of those companies that use edible oils for biscuits, snacks, packaged foods and other consumer goods.
What Can Be the Impact On Price and Profit?
The two main advantages of reduced cost of imports can be.
Firstly, some portion of savings can be retained by companies in form of profit margin.
Secondly, some savings will be passed in the form of reduced prices of the products by companies. Reduced prices of products will motivate people to purchase more products especially in the coming festive season.
But the overall impact of the reduction in the cost of imports will differ from company to company depending on the proportion of edible oil being used by them.
