India’s sunflower oil supplies are facing disruption due to the ongoing Russia-Ukraine war, raising concerns ahead of the festive season. Demand for cooking oil is expected to increase as households and businesses prepare for the celebrations. The supply constraints could put pressure on prices and add to India’s cooking oil import bill.


India’s cooking oil bill surges amid rising import costs 

The Union government on Wednesday cut basic customs duty (BCD) on crude and refined edible oils to lower import costs for cooking oils and provide some relief to consumers ahead of the festive season.The Centre has reduced the BCD on crude soybean oil and crude palm oil to 5% from 10%, according to a Finance Ministry notification issued on Wednesday.&nbsp;The basic customs duty for crude sunflower oil has been brought down to nil from 10%, while the duty on refined sunflower oil has been lowered to 22.5% from 32.5%.&nbsp;The duty on refined soybean and refined palm oil has also been reduced to 27.5% from 32.5%. The revised duties will take effect from Thursday, September 24.&nbsp;Also Read: <a href="https://www.wionews.com/world/jaishankar-meets-rubio-on-unga-sidelines-raises-delhi-s-concern-over-russia-sanctions-law-1790179886768">Jaishankar meets Rubio on UNGA sidelines, raises Delhi’s concern over Russia sanctions law</a>&nbsp;The government has made the changes by amending its earlier customs notification of 24 October 2025.&nbsp;&nbsp;

<blockquote class="twitter-tweet">The Central Government has reduced the basic customs duty (BCD) on crude Soybean Oil and crude Palm Oil from 10% to 5% and on refined Soybean Oil and refined Palm Oil from 32.5% to 27.5%. Further, the BCD on crude Sunflower Oil has been reduced from 10% to Nil, while the BCD on… <a href="https://t.co/uCbfaFouTS">pic.twitter.com/uCbfaFouTS</a>&mdash; ANI (@ANI) <a href="https://x.com/ANI/status/2102805283215225040?ref_src=twsrc%5Etfw">September 23, 2026</a></blockquote> <script async src="https://platform.x.com/widgets.js" charset="utf-8"></script>

<h2>Edible oil prices rose sharply over the past year</h2> The government has slashed duties as edible oil prices have risen sharply over the past year in a bid to ease pressure on household budgets ahead of the festive season, with Navratri beginning on 11 October, followed by Dussehra on 20 October and Diwali on 8 November. As per data from the consumer affairs ministry, as of 23 September, retail prices of soybean oil rose to Rs 166.87 per kg from Rs 146.44 per kg a year ago. Sunflower oil price had risen to Rs 194.26 a kg from Rs 162.56 a kg a year ago, while palm oil was at Rs 153.89 a kg from Rs 132.28 per kg. Also Read: <a href="https://www.wionews.com/india-news/unwarranted-factually-incorrect-no-locus-standi-india-hits-back-at-oic-over-kashmir-remarks-1790171577064">‘Unwarranted, factually incorrect, no locus standi’: India hits back at OIC over Kashmir remarks</a><h2>Domestic production covers only 40% of demand</h2> India’s edible oil demand is around 26 million tonnes annually, while domestic production can cover only up to 40% of this requirement. India’s heavy dependence on imports leaves domestic edible oil prices exposed to global price movements, freight costs and currency fluctuations. Edible oil imports jumped to 1.48 million tonnes in July from 1.1 million tonnes in June, an increase of about 35% month-on-month.

The Central government has slashed basic customs duty as edible oil prices have risen sharply over the past year. The move is a bid to ease pressure on household budgets in the festive season, with Navratri beginning on 11 October, followed by Dussehra on 20 October and Diwali on 8 November.

The Union government on Wednesday cut basic customs duty (BCD) on crude and refined edible oils to lower import costs for cooking oils and provide some relief to consumers ahead of the festive season. The Centre has reduced the BCD on crude soybean oil and crude palm oil to 5% from 10%, according to a Finance Ministry notification issued on Wednesday. The basic customs duty for crude sunflower oil has been brought down to nil from 10%, while the duty on refined sunflower oil has been lowered to 22.5% from 32.5%. The duty on refined soybean and refined palm oil has also been reduced to 27.5% from 32.5%. The revised duties will take effect from Thursday, September 24. Also Read: Jaishankar meets Rubio on UNGA sidelines, raises Delhi’s concern over Russia sanctions law The government has made the changes by amending its earlier customs notification of 24 October 2025.

The Central government has slashed basic customs duty as edible oil prices have risen sharply over the past year. The move is a bid to ease pressure on household budgets in the festive season, with Navratri beginning on 11 October, followed by Dussehra on 20 October and Diwali on 8 November.

Govt slashes duty on edible oils to curb price rise ahead of festive season

US President Donald Trump on Tuesday claimed that China is "purposefully" not buying the soybeans from their farmers, and this is the reason they are considering terminating the business with Beijing.


Trump says considering terminating business with China; threatens to end cooking oil trade

Palm oil, once the cheapest vegetable oil, is now facing sustained price pressures. The combination of slowing production and Indonesia’s aggressive biodiesel push has eliminated the deep discounts that once made it the preferred choice in global markets.

Higher cooking oil costs strain household budgets

The Chinese government says it will investigate allegations that fuel tankers have been used to transport cooking oil after carrying toxic chemicals without being cleaned properly between loads. The controversy has spread online as social media users express concerns about potential food contamination.

Gravitas | China's cooking oil contamination scandal

The Chinese government has set up a high-level investigation team after allegations surfaced that fuel tankers were being used to transport cooking oil, without being cleaned properly in between.&nbsp;

On Tuesday (Jul 9), the food safety office announced the interdepartmental investigation while pledging that those responsible for&nbsp;any malpractice “will be severely punished in accordance with the law".&nbsp;

The state-owned company has been identified as&nbsp;Sinograin, China's largest grain storage and transport company in a report published in Beijing News last week. The report added that a private conglomerate named Hopefull Grain and Oil Group was also involved in the scandal, with both players denying their role.&nbsp;&nbsp;

“Sinograin requires all units in the system to strictly fulfil their responsibilities, abide by work standards and prevent contamination risks to grain and oil reserves,” the company said in a statement posted on its official Weibo (X-like social media platform)&nbsp;account.

<a href="https://www.wionews.com/science/chinas-secret-spaceplane-ejects-mysterious-object-into-earths-orbit-us-hunts-it-down-726732">Also read |&nbsp;China’s secret spaceplane ejects mysterious object into Earth’s orbit. US hunts it down</a>

Hopefull Grain and Oil Group clarified to state-owned news outlets that&nbsp;“relevant departments” had conducted the investigation and would soon make an announcement. The company claimed that one of the tankers reported in the media report was not owned by the conglomerate and that there were no quality issues with the brand's oil products.&nbsp;

Notably, tankers in China are not limited to any particular type of goods. So in theory, they can carry food products straight after transporting coal-based oils. However, not cleaning them means subjecting millions to toxic chemicals which could prove fatal in many cases.&nbsp; 
 
<a href="https://www.wionews.com/videos/chinese-aircrafts-headed-to-western-pacific-739660">Watch |&nbsp;Chinese aircrafts headed to western pacific</a>

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<h2>Chinese public spooked</h2>

Meanwhile, the public in China has been panicking ever since the news first broke with netizens taking to social media to express their shock.&nbsp;

“Even the cooking oil essential to people’s daily lives has now become problematic… Ordinary people cannot be properly safeguarded…Now I just want to scoff at (phrases like) ‘rule of law’ and ‘serving the people’ whenever I see them,” one of the users said on Weibo.&nbsp;

“This is much worse than the Sanlu scandal, it can’t be settled with just [a] statement,” added another user, referring to the 2008 milk scandal in which nearly 300,000 children fell sick while six died after drinking&nbsp;powdered milk contaminated with high levels of the industrial chemical melamine.

The Chinese government said it had noted the concerns and promised to punish any companies and individuals involved in wrongdoing. At the local level, both&nbsp;Hebei and Tianjin provincial governments had also launched their own probe into the matter.&nbsp;

(With inputs from agencies)

The Chinese government has set up a high-level investigation team after allegations surfaced that fuel tankers were being used to transport cooking oil, without being cleaned properly in between.

The Chinese government has set up a high-level investigation team after allegations surfaced that fuel tankers were being used to transport cooking oil, without being cleaned properly in between. On Tuesday (Jul 9), the food safety office announced the interdepartmental investigation while pledging that those responsible for any malpractice “will be severely punished in accordance with the law". The state-owned company has been identified as Sinograin, China's largest grain storage and transport company in a report published in Beijing News last week. The report added that a private conglomerate named Hopefull Grain and Oil Group was also involved in the scandal, with both players denying their role. “Sinograin requires all units in the system to strictly fulfil their responsibilities, abide by work standards and prevent contamination risks to grain and oil reserves,” the company said in a statement posted on its official Weibo (X-like social media platform) account. Also read | China’s secret spaceplane ejects mysterious object into Earth’s orbit. US hunts it down Hopefull Grain and Oil Group clarified to state-owned news outlets that “relevant departments” had conducted the investigation and would soon make an announcement. The company claimed that one of the tankers reported in the media report was not owned by the conglomerate and that there were no quality issues with the brand's oil products. Notably, tankers in China are not limited to any particular type of goods. So in theory, they can carry food products straight after transporting coal-based oils. However, not cleaning them means subjecting millions to toxic chemicals which could prove fatal in many cases. Watch | Chinese aircrafts headed to western pacific × Chinese public spooked Meanwhile, the public in China has been panicking ever since the news first broke with netizens taking to social media to express their shock. “Even the cooking oil essential to people’s daily lives has now become problematic… Ordinary people cannot be properly safeguarded…Now I just want to scoff at (phrases like) ‘rule of law’ and ‘serving the people’ whenever I see them,” one of the users said on Weibo. “This is much worse than the Sanlu scandal, it can’t be settled with just [a] statement,” added another user, referring to the 2008 milk scandal in which nearly 300,000 children fell sick while six died after drinking powdered milk contaminated with high levels of the industrial chemical melamine. The Chinese government said it had noted the concerns and promised to punish any companies and individuals involved in wrongdoing. At the local level, both Hebei and Tianjin provincial governments had also launched their own probe into the matter. (With inputs from agencies)

Chinese companies transport cooking oil in toxic fuel trucks? Major scandal sparks investigation

A Dubai-based plant is turning used cooking oil into different types of biofuels - in a push to provide sustainable and alternative solutions for the region. Our next report gets you their story.

Making biofuel from used cooking oil

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