India, Sept. 24 -- The government has reduced import duties on major edible oils at a time when domestic vegetable-oil prices have increased by nearly 20% over the past year. The timing is significant as India enters the September-November festive period, when demand for edible oils generally rises with higher consumption of sweets, snacks and fried foods. India meets nearly two-thirds of its vegetable-oil demand through imports, leaving domestic prices and refining economics closely linked to international commodity prices.

Under the revised duty structure, the BCD on crude palm oil and crude soybean oil has been reduced to 5% from 10%, while the duty on refined palm and soybean oil has been cut to 27.5% from 32.5%. The largest reducti...