Better Oilseed Production Expected to Keep Edible Oil Prices Stable

30-Apr-2025 05:07 PM

Mumbai. Despite a spike in edible oil prices last September following a 20 percentage point hike in import duty on both crude and refined edible oils, the market has now begun to stabilize, supported by better domestic oilseed production and favorable global supply trends.

According to a leading edible oil company, edible oil prices are expected to remain stable within a limited range in the coming months due to strong domestic production of key oilseeds like soybean, groundnut, and mustard.

Additionally, the export offer prices of palm oil from Malaysia and Indonesia have declined significantly, making imports into India more affordable. This could place downward pressure on the prices of soybean oil and sunflower oil in global markets.

The company, which markets a wide range of branded oils including soybean, sunflower, mustard, groundnut, rice bran, and cottonseed oil, reported that the supply of edible oils in India remains comfortable,

even though palm oil imports have slowed in the past 2–3 months. With existing stocks running low, palm oil imports are likely to rise in May and June, ensuring steady supply.

Domestically, arrivals of soybean, groundnut, and mustard are ongoing, and the industry and trade sectors are procuring oilseeds as per their demand.

In addition, the government holds record stockpiles of soybean and groundnut, which were procured from farmers at the Minimum Support Price (MSP) during the last Kharif marketing season.

Once these government-held stocks are released into the market, overall supply will increase further, helping to contain any potential price spikes.