loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

The government has reduced the Basic Customs Duty (BCD) on key edible oils

ICICIdirect Research 24 Sep 2026 DISCLAIMER

News: The government has reduced the Basic Customs Duty (BCD) on key edible oils, effective September 24, 2026, through Notification No. 31/2026-Customs dated September 23, 2026. BCD on crude soybean oil and crude palm oil has been cut to 5% from 10%, while duty on refined soybean oil and refined palm oil has been reduced to 27.5% from 32.5%. Further, BCD on crude sunflower oil has been reduced to nil from 10%, while refined sunflower oil duty has been cut to 22.5% from 32.5%.

View: The reduction in customs duty on edible oils should provide some breather to FMCG companies in backdrop of inflated vegetable oil and crude prices. Hindustan Unilever, which has PFAD exposure of ~12–13% of raw-material cost, and Marico has exposure to vegetable oils such ad soybean oil and sunflower oil ( ~10% of raw material cost), are likely to benefit from the duty cut. The move should also provide relatively meaningful relief to snacking and food companies such as Bikaji and Gopal Snacks, where vegetable oils account for ~32% of raw-material costs.

Impact: Positive

Download
ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download
ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere