The Government has reduced the Basic Customs Duty (BCD) on major imported crude edible oils to provide relief to consumers amid rising global prices. According to the Ministry of Consumer Affairs, Food and Public Distribution, the BCD on Crude Sunflower Oil has been reduced from 10% to Nil, while the BCD on Crude Soybean Oil and Crude Palm Oil has been reduced from 10% to 5%. The government has simultaneously reduced applicable BCD on refined edible oils while maintaining an import duty differential of 19.25% between crude and refined edible oils. As reported by the Ministry, the reduction in BCD on crude edible oils is expected to lower their landed cost and facilitate transmission of benefits through the domestic supply chain.
Uruguay is developing its edible oil seeds sector with India as a future market, learning from Argentina's successful export strategy. According to Mint, Uruguay's ambassador Alberto Antonio Guani Amarilla stated that while the country's current oil production is low, they are developing capabilities to serve India's monumental market needs. Argentina leads India's edible oil imports with $3.66 billion in FY26, followed by Indonesia at $3.48 billion and Malaysia at $2.94 billion, as reported by the commerce ministry. Uruguay's focus will be on soybean and sunflower oils, with significant scope for expansion if the country scales up oilseed cultivation and processing capacity.
Health-conscious consumers are shifting toward cold- and wood-pressed oils despite higher prices, with the niche segment valued at ₹755 crore in 2025 and projected to reach ₹1,214 crore by 2034. According to reports from Mint, households in urban areas are increasingly choosing premium, health-focused cooking oils, even as raw material inflation and changes in import policies threaten to trouble household budgets. The demand for cold-pressed and wood-pressed oils, which are traditionally more expensive than regular refined oils, remains surprisingly steady, supported by a persistent interest in healthier eating and wellness.
Large businesses like Marico Ltd and Tata Consumer Products Ltd are scaling their cold-pressed capabilities to capture higher gross margins. As reported by Mint, Marico's CEO Saugata Gupta called the cold-pressed segment an 'emerging consumer trend' and noted that cold-pressed oils have higher margins than the company's core edible oil products. Tata Consumer Products entered the segment through its Tata Sampann portfolio, with its cold-pressed oil business having an annual run-rate of about ₹200 crore in FY26, representing roughly 13% of the brand's revenue of more than ₹1,500 crore.
The cost differential between conventional and premium oils has narrowed significantly, making cold-pressed variants more accessible to buyers. According to Mint reports, refined sunflower oil sells for around ₹195 a litre, compared with ₹334 for cold-pressed sunflower oil, creating a differential of ₹139. Smaller cold-pressed oil makers are also reporting stronger demand, with Dishit Nathwani of House of Gulab estimating his cold-pressed oil business grew from around ₹40 crore last year to about ₹70 crore this year, and could cross ₹120 crore next year. Cold-pressed oils now cost about 1.7-1.8 times as much as conventional variants.
The Government has issued an advisory to edible oil associations and industry stakeholders to ensure that the full benefit arising from the reduction in import duty is passed on to consumers. As reported by the Ministry, industry stakeholders have been requested to immediately revise their Price to Distributors and Maximum Retail Price in accordance with the reduction in landed costs. Edible oil associations have also been requested to advise their members to implement the corresponding price reductions without delay. This measure is intended to provide relief to consumers while contributing to the broader objective of containing food-price and overall inflationary pressures.
