India: Government raises edible oil tariff values from September 1

• Tariff values for seven edible oils increased by US$5-8/MT, while duty rates remained unchanged.
• Higher tariff values and a revised exchange rate raised import duty by Rs 173-474/MT.

The Ministry of Finance has revised the tariff value of edible oils with effect from September 1, 2026, through Notification No. 72/2026-Customs (N.T.) dated August 31, 2026. The revision covers crude and refined palm oil, palmolein and crude soya oil.

Tariff values revised upward

The tariff value of crude palm oil was increased by US$6/MT to US$1,214/MT from US$1,208/MT, while its import duty rose by INR 185/MT to INR 19,330/MT.

For RBD palm oil, the tariff value increased by US$7/MT to US$1,227/MT, taking import duty to INR 42,330/MT from INR 41,892/MT. The tariff value for other palm oil also increased by US$7/MT to US$1,221/MT, while import duty rose to INR 42,123/MT from INR 41,686/MT.

Crude palmolein saw a US$8/MT increase in tariff value to US$1,235/MT, with import duty rising by INR 218/MT to INR 19,664/MT.

The tariff value for RBD palmolein was raised by US$8/MT to US$1,238/MT, lifting import duty to INR 42,709/MT from INR 42,236/MT. For other palmolein, the tariff value also increased by US$8/MT to US$1,237/MT, while import duty rose to INR 42,675/MT from INR 42,201/MT.

For crude soya oil, the tariff value increased by US$5/MT to US$1,262/MT, while import duty increased by INR 173/MT to INR 20,094/MT from INR 19,921/MT.

Rupee exchange rate also revised

Alongside the tariff-value revision, the exchange rate used for calculating import duty was increased to INR 96.50/US$ from INR 96.05/US$.

The effective import duty rates, however, remain unchanged. Crude palm oil, crude palmolein and crude soya oil continue to attract 16.50%, while RBD palm oil, other palm oil, RBD palmolein and other palmolein remain at 35.75%.

Palmolein sees highest duty increase

Among the seven products, other palmolein recorded the largest increase in import duty at INR 474/MT, followed closely by RBD palmolein at INR 473/MT. RBD palm oil and other palm oil saw increases of INR 438/MT and INR 437/MT, respectively.

The higher rupee duty reflects both the increase in tariff values and the revised exchange rate, rather than any increase in the effective duty percentage.

Outlook

The upward revision increases the import-duty burden on edible oils, with the largest impact concentrated on refined palm oil and palmolein categories. The move could marginally raise the landed cost of imports, although the broader impact on domestic edible oil prices will depend on global palm and soybean oil prices, currency movements and domestic supply-demand conditions.