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Edible oils are already central to India’s kitchens, retail shelves, and personal care aisles. But with prices on the cusp of change, the aftershocks could be felt far beyond households. From food makers to restaurants, from FMCG majors to allied industries, the beneficiaries of this shift may be far more diverse than most expect. Could this price turn set the stage for the next big consumption story?
Suppose you have ever wondered what links the samosa at your street corner, the packet of chips in your cupboard, the soap in your bathroom, and even certain specialty chemicals in factories. In that case, the answer is surprisingly simple: edible oil. More specifically, palm oil and its cousins, soybean and sunflower oil. These oils do not just dominate our kitchens; they run through an astonishing array of industries. And in India, where more than half of the edible oil consumed is imported, even a small policy change or global price swing can ripple through entire value chains, shaping company profits and consumer prices alike.
At the end of May 2025, the government pulled an important lever that set such a ripple in motion. It halved import duty on crude edible oils—palm, soybean, and sunflower—from 20 per cent to 10 per cent, while keeping duties on refined oils much higher at 32.5 per cent. The move widened the gap between crude and refined oils, nudging companies to import crude and process it locally instead of relying on refined imports. In effect, it was a “Make in India” signal for edible oils, aimed at boosting domestic refining, controlling food inflation, and eventually easing cooking oil prices for consumers. See details.
Source: Online/OFA
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