Edible oil duty cuts good for importers, consumers, but farmers may suffer

The government has set a high MSP for soybean, but the near-collapse of the domestic market for oil meal, a key byproduct of soybeans, means farmers may look at alternative crops

In a surprise move late last week, the union government cut by half import duties on all crude edible oils, from 20 percent to 10 percent in a bid to reduce domestic prices and also support the local refining industry.

 

The decision that came just weeks ahead of the sowing of the new oilseeds crop for the 2025-26 kharif season raised eyebrows in several farmers’ groups even as oilseeds refiners and importers welcomed the step.

 

In April 2025, food inflation as measured by the Consumer Price Index (CPI) dropped to just 1.78 per cent, down from 2.69 per cent in