India’s top edible oil refiners including AWL Agri Business Limited and Patanjali Foods are expected to benefit after the Centre slashed Basic Customs Duty (BCD) on major crude edible oil imports from 20% to 10%, effective June 11. The move aims to cool retail inflation, lower consumer prices, and boost domestic refining.
The Ministry of Consumer Affairs said the reduced duty will create a 19.25% gap between crude and refined oil imports, encouraging higher refining activity within India. This is seen as a direct positive for companies that import crude oils and process them domestically.
AWL Agri Business Limited, one of the country’s largest branded edible oil companies, and Patanjali Foods Ltd (formerly Ruchi Soya), a key soybean and palm oil processor, are among the most likely beneficiaries. The duty cut reduces their input costs and improves their pricing advantage over imported refined oils.
Other listed edible oil players like Kriti Nutrients, Gokul Agro Resources, and Vippy Spinpro may also see margin improvements from the new policy. FMCG player Marico, which markets Saffola edible oils, could benefit modestly if it sources crude oil directly.
The policy shift is part of the government’s broader attempt to curb food inflation, especially after last year’s duty hikes triggered a sharp rise in edible oil prices. The government has directed edible oil associations to pass on the cost savings to consumers by adjusting Maximum Retail Prices (MRP) and Price to Distributors (PTD) in real time.
Markets may track edible oil stocks closely in the coming sessions as the full impact of the policy change plays out across the supply chain.
