Middle East crisis cooks up a storm: Edible oil prices hit home

New Delhi (The Uttam Hindu): The direct impact of the ever-increasing war and tension in the Middle East has now reached the Indian kitchen. This time the impact of inflation is not limited to petrol-diesel or LPG gas, but the most essential item of the kitchen, i.e. cooking oil, is also rapidly becoming expensive. In India, be it the parathas made for breakfast, the samosas-jalebis from the market or the everyday vegetables, cooking oil is used in abundance in everything. In such a situation, this surge in the prices of cooking oil is directly emptying the pockets of the common man and spoiling the household budget.

Cooking oil prices have risen sharply in just one month

Looking at market data, edible oil prices have seen a clear and significant jump in the past month. Between February 24 and March 24, 2026, sunflower oil prices jumped from ₹175 to ₹181 per kg. Palm oil, meanwhile, rose by ₹5 to ₹141 per kg. Soybean oil prices also increased by ₹4 per kg, while peanut, vegetable, and mustard oil prices increased by approximately ₹3 per kg.

Consumption is constantly increasing, India's dependence on imports remains high

The importance of cooking oil in India is not limited to enhancing the taste; it is also a vital source of essential fat, energy, and nutrition. While the demand for cooking oil is growing rapidly, domestic production is lagging behind. According to 2022-23 data, the average person in urban India consumes 12 kg of oil annually, and in rural areas, it consumes about 11 kg. To meet this huge demand, India has to import about 56 percent of its oil needs from abroad, while only 44 percent comes from domestic production.

Rising import bill and palm oil accounts for the largest share

Import figures speak volumes about this dependence. In 2017, India imported $11.8 billion worth of edible oil, which is projected to rise to a staggering $21.1 billion in 2022. However, this figure will decline slightly to $18.6 billion in 2025. Palm oil accounts for the largest share of India's total oil imports, accounting for 41 percent. This is followed by soybean oil at 35 percent and sunflower oil at 18 percent.

Government claims there is no threat to supply, Mission Atmanirbhar also begins

Amid rising prices, the government has assured the public that despite the ongoing Iran-Israel tensions, there is no major threat to India's oil supply. India is not dependent on a single country, but imports oil from several countries, including Malaysia, Indonesia, and the United States. Therefore, if supplies are disrupted in one location, alternative options are readily available. Additionally, to reduce foreign dependence and increase self-reliance, the government has launched the National Mission on Edible Oils-Oilseeds, whose primary objective is to rapidly increase domestic oilseed and oil production in the coming years.