Edible oil prices in India are expected to fall soon, following a period of significant price hikes due to the increased demand during the festive season.

For instance, in November, the retail price of soybean oil surged to Rs 160-170 per liter, and palm oil saw a sharp 37% price increase in October. Similarly, mustard oil and sunflower oil prices rose by 29% and 23%, respectively, while peanut oil prices increased by 4%.

Despite expectations for price moderation after the festive season, prices remained high in November. Several factors contributed to this: a 20% increase in import duties on edible oils, a rise in global market prices, and weakening palm oil production in Southeast Asia.

The government had raised the import duty on crude and refined edible oils in September 2024 to support domestic oilseed prices, particularly for soybean, but this strategy did not lead to the expected price rise in soybean, which instead fell.

However, the global price of soybean oil has recently softened, and domestic supply has increased. There are signs that mustard oil prices are also stabilizing, although sowing is behind schedule compared to last year.

Given the improved supply and availability, experts predict a gradual reduction in edible oil prices in the near future.