According to data from the Department of Consumer Affairs' Price Monitoring Cell, cooking oil prices have experienced significant increases across all major categories. Mustard oil prices reached ₹193.54 per kg, soybean oil at ₹163.10 per kg, and palm oil at ₹147.37 per kg as of Wednesday. Compared to the previous year, prices have increased by 10.74% for mustard oil, 11.53% for soybean oil, and 12.87% for palm oil. As reported by Financial Express, B V Mehta, Executive Director of the Solvent Extractors' Association (SEA), attributed the surge to higher freight charges, rising insurance costs, rupee depreciation, and increasing diversion of edible oils towards biofuel production.
India's heavy reliance on imports makes domestic prices highly sensitive to global market movements, with the country meeting nearly 57-58% of its edible oil demand through imports. According to SEA data reported by Financial Express, landed prices of crude edible oils at Mumbai ports as of July 3 have risen significantly over the past year. Palm oil prices increased 11% to $1,170 per tonne, soybean oil rose 6% to $1,267 per tonne, while sunflower oil recorded the steepest rise of 20% to $1,455 per tonne. The surge in import prices has been particularly sharp since the West Asia war, according to Mehta.
Industry experts believe international developments will continue to determine edible oil price direction in the coming months. According to Sudhakar Desai, President of the Indian Vegetable Oil Producers' Association (IVOPA), the market outlook depends on Indonesia's B50 biodiesel programme, evolving US biofuel policies, crude oil prices, currency movements, weather conditions, and export policies adopted by major producing nations. Indonesia, the world's largest palm oil producer, implemented its B50 biodiesel programme from July 1, 2026, which will divert nearly 14.6 million tonnes of palm oil towards fuel production and tighten supplies for edible use.
Weather conditions present another major concern for India's edible oil sector. Industry experts warn that prospects of a weaker monsoon could weigh on domestic oilseed production, particularly soybean, groundnut, and mustard crops. As reported by Financial Express, sowing of soybean and groundnut has already lagged by around 35% year-on-year due to inadequate rainfall across key producing regions, especially Gujarat and Madhya Pradesh. A lower domestic harvest could increase India's dependence on imports at a time when global prices are already trading at elevated levels.
India imported 16.01 million tonnes of edible oils during the 2024-25 oil year, valued at approximately $18.3 billion. Palm oil accounted for more than 47% of total shipments, with sunflower and soybean oil making up the remainder. Looking ahead, IVOPA has projected India's edible oil imports to increase to 16.8 million tonnes in 2025-26, including 8.5 million tonnes of palm oil, 5.1 million tonnes of soybean oil, 3 million tonnes of sunflower oil, and around 0.2 million tonnes of other edible oil varieties. With international prices remaining firm and monsoon uncertainty clouding domestic production prospects, industry experts believe cooking oil prices are likely to remain under pressure in the near term.
