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Edible Oil Prices Set to Dip: 5–6% Drop Expected After Duty Reduction

Written by: Neha DubeyUpdated on: Jun 3, 2025, 9:28 AM IST
Indian households may soon experience some relief in their kitchen budgets as cooking oil prices are expected to decline.
Edible Oil Prices Set to Dip: 5–6% Drop Expected After Duty Reduction
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In a move aimed at curbing food inflation and easing the burden on consumers, the central government has reduced import duties on crude edible oils by 10%.  

The decision comes amid a sharp rise in edible oil prices, which had surged nearly 17% in recent months. The reduction in duties is expected to lead to a 5%–6% fall in retail prices over the next two weeks. 

Early Signs of Softening in Wholesale Markets 

Wholesale markets have already begun to reflect the impact of this policy change. As per a PTI news report, executives from major edible oil firms note that prices of palm, sunflower, and soy oils are showing early signs of decline. The retail impact is expected to follow shortly as the new pricing filters through the supply chain. 

Mustard Oil Also Expected to See a Price Dip 

Interestingly, the price correction is not limited to imported edible oils. Mustard oil, which is primarily produced domestically, could also see a 3–4% reduction in prices. This is due to the overall downward pressure in the edible oil segment, driven by improved supply dynamics and changing import economics. 

Boost for India’s Edible Oil Refining Industry 

Beyond consumer relief, the policy shift is also giving a fresh boost to India’s edible oil refining sector. With the widened gap between crude and refined oil duties from 12.5% to 22.5% it has become more cost-effective for companies to import crude oil and refine it locally. This change not only improves margins for refiners but also encourages domestic processing and job creation. 

What Consumers Can Expect 

Shoppers can look forward to lower prices in kirana stores and supermarkets within a fortnight. For families coping with rising grocery bills, especially in urban and semi-urban areas, the reduced cost of cooking oils could bring tangible relief to monthly budgets. This development may also set the tone for similar measures in other food-related categories if inflationary pressures persist. 

Read More: Key Trends to Watch in June 2025: RBI MPC Meeting, Inflation Data and More. 

Conclusion 

The central government’s proactive step in reducing import duties on crude edible oils is expected to deliver wide-ranging benefits from lower household expenses to revitalising domestic refining operations. For millions of Indian consumers, a noticeable price dip in the coming days could offer a much-needed break in the current inflationary environment. 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

 

Published on: Jun 3, 2025, 9:27 AM IST

Neha Dubey

Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.

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