India Considers Lowering Vegetable Oil Import Taxes as Prices Rise

India is considering reducing import taxes on vegetable oils to control rising food prices as the peak festival season begins, according to government and industry sources cited by Reuters. Domestic vegetable oil prices have increased by nearly 20% over the past year, raising concerns about the impact on household budgets.

India, the world’s largest vegetable oils importer, meets nearly two-thirds of its demand through imports, mainly palm oil, soyoil and sunflower oil. A reduction in import duties could lower domestic prices and encourage consumption during the September-November festival period, when demand for sweets, snacks and fried foods typically increases.

However, industry officials have warned that lower import duties could boost global prices by increasing Indian demand and may affect domestic oilseed farmers. India had already reduced the basic import tax on crude edible oils to 10% in May 2025, bringing the effective total import duty on major crude edible oils to 16.5%.

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