New Delhi: The government on Thursday reduced the Basic Customs Duty (BCD) on major imported crude edible oils in an effort to moderate domestic prices, provide relief to consumers and contain inflationary pressures arising from rising global edible oil costs. 

Under the revised duty structure, the BCD on crude sunflower oil has been slashed from 10 per cent to zero, while the duty on crude soybean oil and crude palm oil has been reduced from 10 per cent to 5 per cent. 

At the same time, the government has lowered the applicable customs duty on refined edible oils while retaining a duty differential of 19.25 per cent between crude and refined oils.

The move comes amid a sharp increase in international edible oil prices, which has pushed up import costs and contributed to higher retail prices in the domestic market. 

As India relies significantly on imports to meet its edible oil demand, import duties play a key role in determining the landed cost of products and their final selling prices.

The government said the reduction in customs duty on crude edible oils is expected to lower import costs and help transmit the benefits through the supply chain to consumers. 

The measure is aimed at easing the burden on households while supporting broader efforts to keep food inflation and overall inflation under control.

At the same time, the government has maintained the duty gap between crude and refined edible oils to protect domestic refining operations and discourage excessive imports of refined products. 

Officials said the policy is intended to create a level playing field for local refiners and encourage value addition within the country.

Alongside the duty reduction, the government has issued an advisory to edible oil associations and industry stakeholders, urging them to pass on the benefits of lower import duties to consumers without delay.