Cooking Oil Prices Surge to Record Highs Amid Crude Oil Rally and Biodiesel Demand
Cooking Oil prices in India have climbed sharply, touching their highest levels ever, as global crude oil volatility and rising biodiesel demand tighten edible oil supplies. Industry observers link this surge to disruptions in crude oil supply triggered by escalating conflict in the Persian Gulf, combined with sustained global demand for biodiesel feedstocks such as soyabean and palm oil. According to traders, India currently meets only 35% of its domestic edible oil requirement, making it acutely vulnerable to global price shocks. Wholesale prices have been rising steadily since early February.
Wholesale Market Spike: Up to 28–30% MOM Rise. In Vidarbha markets, cooking oil prices rose 28–30% month‑on‑month with a particularly sharp spike recorded on March 20.
Soya Refined (Plant Rate): ₹1590 / 10 litres, Kg in Vidarbha, marking one of the steepest increases in recent years. Retail markets will reflect the change after a short lag
Soya Refined (Plant Rate): ₹1590 / 10 litres, Kg in Vidarbha, marking one of the steepest increases in recent years. Retail markets will reflect the change after a short lag
Crude Oil Connection: Global crude oil prices have surged due to heightened geopolitical tensions in the Middle East, especially disruptions near the Strait of Hormuz — a corridor that handles nearly 20% of global oil shipments. Although India’s edible oil imports neither originate from nor travel through Middle Eastern routes, the price rally in edible oils has closely tracked movements in crude oil markets.
According to market analysts, the diversion of soyabean and palm oil to biodiesel production intensifies whenever crude oil prices rise, squeezing supplies meant for food consumption. This trend has become particularly strong following recent global crude oil spikes.
source: The Hindu Updated - March 20, 2026 03:04 pm IST