- Crude palm, soya oil tariffs rise by $5-6/MT, refined palm oil, palm olein by $4/MT
- Customs’ exchange rate cut to INR 95.25 from INR 96.50, reducing import duty
India’s Ministry of Finance has revised tariff values for edible oils, effective 16 September 2026, through Notification No. 75/2026-CUSTOMS (N.T.) dated 15 September. The revision covers crude and refined palm oil, palm olein, and crude soya oil. While the higher tariff values raise the customs valuation of imports, the reduction in the exchange rate used for conversion into rupees has lowered the import duty payable across all covered products.
Tariff values increase across edible oils
The tariff value for crude palm oil has increased by $5/MT to $1,219/MT from $1,214/MT. RBD palm oil and other palm oil values have risen by $4/MT each to $1,231/MT and $1,225/MT, respectively.
For palm olein, the tariff value for crude palm olein has increased by $4/MT to $1,239/MT from $1,235/MT. RBD palm olein and other palm olein values have also risen by $4/MT each to $1,242/MT and $1,241/MT, respectively. The tariff value for crude soya oil has increased by $6/MT to $1,268/MT from $1,262/MT.
Import duty declines in rupee terms
The effective import duty rates remain unchanged at 16.50% for crude palm oil, crude palm olein, and crude soya oil. The applicable rate for RBD palm oil, other palm oil, RBD palm olein, and other palm olein remains 35.75%.
However, the customs exchange rate has been revised to INR 95.25 per US dollar from INR 96.50. As a result, import duty on crude palm oil has declined by INR 172/MT to INR 19,158/MT from INR 19,330/MT. Duty on RBD palm oil and other palm oil has fallen by INR 412/MT and INR 409/MT to INR 41,918/MT and INR 41,714/MT, respectively.
Import duty on crude palm olein has decreased by INR 192/MT to INR 19,472/MT. Duty on RBD palm olein and other palm olein has declined by INR 417/MT each to INR 42,292/MT and INR 42,258/MT, respectively. Duty on crude soya oil has fallen by INR 166/MT to INR 19,928/MT.
International prices provide market context
International edible oil prices on September 15 showed mixed trends against India’s revised tariff values. Crude palm oil was quoted at $1,270/MT on an FOB Indonesia basis, $51/MT above its revised tariff value of $1,219/MT, while crude soya oil stood at $1,325/MT on a CIF Mumbai basis, $57/MT above its benchmark of $1,268/MT.
RBD palm olein, however, was priced at $1,195/MT on an FOB Malaysia/Indonesia basis, $47/MT below its revised tariff value of $1,242/MT. These differentials reflect variations between international market prices and customs valuations, while freight, insurance, exchange rates and import duties also influence final landed costs.
Outlook
The revised tariff values increase the customs valuation of edible oil imports, potentially raising landed costs for importers. However, the lower customs exchange rate from INR 96.50 to INR 95.25 reduces the rupee value of the dollar-denominated tariff, providing some relief on import duty.
The net impact on domestic edible oil prices will depend on international palm and soya oil prices, freight costs, and the rupee-dollar exchange rate. If global prices remain firm, the higher tariff values could add to import costs and support domestic edible oil prices. However, the lower exchange rate may offset part of this increase, limiting the overall impact on landed costs.
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