Edible Oil Industry Also Hit by West Asia Crisis

21-Apr-2026 03:54 PM

Mumbai. The President of the Solvent Extractors' Association of India (SEA) has stated that, alongside other sectors, the edible oil industry is also being adversely affected by the ongoing crisis and uncertain situation in West Asia. Although a temporary ceasefire and the brief reopening of the Strait of Hormuz had kindled some hope, that optimism is now fading.

The Indian edible oil industry is currently facing a dual challenge. Shipping routes remain hazardous, freight charges for vessels have risen significantly, and the commercial flow of edible oils and oil meals has become uncertain. This is causing considerable difficulty for the industry in formulating its strategies.

Furthermore, ever since the conflict between Iran and the U.S. began, the crisis regarding oil and gas supplies has also intensified. Moreover, the prices of components derived from crude mineral oil—specifically polyethylene and polypropylene—have surged by 50–60 percent; these two materials are considered critical inputs for plastic packaging.

Consequently, the cost of bottles and plastic wrappers has increased. Typically, packaging materials account for 15 to 25 percent of a product's total manufacturing cost. This implies that even a proportionate increase in the cost of packaging materials inevitably drives up the overall production cost of the final product.

The edible oil industry is also grappling with this issue, compelling millers and processors to raise the prices of their products.

Until the situation in West Asia returns to normalcy, the edible oil industry is likely to continue facing numerous challenges. Both the import of edible oils and the export of oil meals could be adversely affected.