India’ edible oils import may go up by over 6% to exceed $ 19 billion in 2025-26 oil year (Nov-Oct) compared to previous year if the sharp spike in prices landed cost of oils due to west Asia conflict prolonges, trade sources said
Since the conflict began in February, the landed cost of edible oils has increased by over 12% for bulk oils – palm and soybean to $ 1285/tonne and $ 1380/tonne respectively.
The import prices of sunflower has seen a modest rise of 3% to $ 1440/tonne since the conflict, according to the solvent extractors association of India (SEA).
ALSO READIndia-bound Iran crude flips mid-voyage, heads to China
Shipping Disruptions
“Edible oil prices shot up in the last one month only due to high freight, increase in insurance and depreciation of rupee,” BV Mehta, executive director, SEA, told FE.
According to industry assessment, the freight cost of crude palm oil consignments from Malaysia and Indonesia since the beginning of the conflict has doubled to $ 60/tonne from the earlier price of around $ 30/tonne.
Similarly, freight cost for import of soybean and sunflower from Ukraine, Brazil and Argentina has increased to $ 150/tonne against $ 60/tonne prevailed prior to the outbreak of the conflict.
According to Crisil Ratings, shipping routes have been disrupted, with vessels carrying sunflower oils from Russia and Ukraine avoiding conflict zones and taking longer routes such as around the Cape of Good Hope. “For vessels passing through conflict sensitive zones, war risk insurance premiums have risen,” the agency has stated.
Current landed costs of edible oils have increased by 8.5% (palm), 25% (soybean) and 18% (sunflower) compared to prices prevailing a year ago.
The cooking oil imports in 2024-25 oil years was valued at $ 18.3 billion.
Out of the total import of 16.01 million tonne (MT) of cooking oils in 2024-25 oil year, the share of palm oil shipments was over 47% while the rest was sunflower and soybean oils.
Domestic Impact
India imports around 57% of its edible oil requirement. Palm, soybean and sunflower account for the bulk of consumption of around 25 – 26 MT. Share of domestic edible oils includes mustard (40%), soyabean (24%) and groundnut (7%) and others.
The country imports oils from Indonesia, Malaysia, Thailand, Ukraine, Russia and Argentina. India produces oils such as mustard, soybean and groundnut.
ALSO READChina seeks to leverage trade with India for impact
The rise in import prices of edible oils have also impacted the domestic oil seeds prices. The Mandi prices of mustard seeds have been ruling around Rs 7000/ quintal against the minimum support price (MSP) of Rs 6,200/quintal in 2025-26 season.
According to the department of consumer affairs, the average retail prices of mustard and groundnut oils on Friday rose by 12% and 4.46% to Rs 188/litre and Rs 200/litre respectively.
The prices of soybean and palm oils were Rs 157/litre and Rs 143/litre which is an increase of 7.4% and 3% compared to previous year respectively.
TOPICSEdible oilThis article was first uploaded on April three, twenty twenty-six, at three minutes past eight in the night.