Slight improvement in the price of edible oils due to import being somewhat expensive

13-Feb-2025 05:10 PM

It seems the price of edible oils in India has been slightly increasing due to a combination of factors, such as higher export prices from the source countries and the fall of the Indian rupee against the dollar.

As you mentioned, palm oil, soybean oil, and sunflower oil, which are the main edible oils imported by India, have become more expensive due to these factors.

This price increase has also had a ripple effect on other oils like mustard oil, groundnut oil, cottonseed oil, and rice bran oil.

Even though there has been a price rise of Rs 5-6 per kg recently, experts are uncertain whether this increase will persist.

The decrease in edible oil imports, especially palm oil, in January 2025, is another factor contributing to this price hike. The situation is closely tied to the exchange rate fluctuations—

the weakening of the rupee makes imports more costly, which then affects domestic prices. The import duty hike last year also played a role in increasing the cost of edible oils.

The new mustard crop from the Rabi season may ease some of the pressure on prices, but the broader outlook will depend on the stability of the rupee and global market dynamics, especially in palm oil exporting countries like Indonesia and Malaysia.

This kind of fluctuation seems to be an ongoing challenge for both importers and consumers in India.