News Capsule: Weak Rupee Makes Imported Edible Oils Costly; Domestic Oilseed Demand Likely to Rise
12-Dec-2025 10:30 AM
News Capsule: Weak Rupee Makes Imported Edible Oils Costly; Domestic Oilseed Demand Likely to Rise
★ With the rupee hitting an all-time low against the dollar, the cost of imported edible oils has surged, prompting several refiners to cancel import contracts for December–January. This is expected to impact domestic oilseed prices from January onwards.
★ The rupee on Thursday slipped to 90.48 per dollar. As imports become costlier, millers are now compelled to purchase more domestic oilseeds. According to market sources, around 70,000 tonnes of soybean oil contracts have already been cancelled.
★ FOB prices of sunflower oil have also risen to 1,345 dollars per tonne, while the landed cost of global oils has increased by roughly 3 rupees per litre. This may revive the currently sluggish demand for domestic oilseeds.
★ Soybean—trading well below its MSP of 5,328 rupees per quintal—could rise by about 500 rupees per quintal in January. The improvement in demand will coincide with declining availability of oilseeds, which may further support prices.
★ Similarly, the rise in imported sunflower oil prices is expected to lift peanut oilseed demand in January, just as market arrivals begin to drop from their peak.
★ Port stocks have also shown a decline. Imports are already falling, and December volumes are expected to be even lower. Estimated December imports stand at 6.5 lakh tonnes of palm oil, 3.5 lakh tonnes of soybean oil, and 1.3 lakh tonnes of sunflower oil.
★ In November, sunflower oil imports fell to a two-year low of 1.43 lakh tonnes, down 45% from October and 58% from November 2024.
★ Overall, the weak rupee and costlier imported oils are likely to push prices higher in both domestic oilseeds and edible oils in the coming weeks.