Edible Oil Industry Requires Policy Support from the Government
11-May-2026 07:25 PM
Mumbai. Amidst the ongoing crisis in West Asia and the prevailing high prices in the international market, the rising shipment charges and insurance costs for edible oils have emerged as a cause for concern for the Indian industry. The difficulties have been further compounded by the significant weakening of the Indian currency (Rupee) against the US Dollar.
The Solvent Extractors' Association of India (SEA) has apprised the Union Ministers of Finance, Commerce, Agriculture, and Food regarding the various problems and challenges facing the edible oil industry and the trade sector, by sending them a letter and citing relevant statistics.
The letter states that on February 27 (prior to the Iran-US conflict), the import cost of RBD Palmolein at Mumbai Port stood at $1,115 per tonne; however, following the ceasefire, by May 7, this cost had surged by $120 to reach $1,235 per tonne.
Similarly, during the same period, the import cost of Crude Palm Oil (CPO) rose by $105—from $1,150 per tonne to $1,255 per tonne—while the import cost of Crude Soybean Oil increased by $80—from $1,230 per tonne to $1,310 per tonne; meanwhile, the import cost of Crude Sunflower Oil remained steady at a high level of $1,400 per tonne.
According to the SEA, during the period under review, both the shipment charges and insurance costs for importing edible oils from various supplier nations to India's Kandla and Mundra ports also witnessed an increase. Shipment costs from Argentina, which previously stood at $70–$75, have now risen to $140–$145. Insurance costs, too, have gone up from $15 to $20.
Likewise, shipment costs from Russia have increased from $55 to $90–$95, while insurance costs have risen from $15 to $20–$25. Shipping costs for imports from Indonesia and Malaysia have risen from $40 to $55, while insurance costs remain unchanged.
Under these circumstances, the indigenous vegetable oil industry is in dire need of government policy support, assistance, and incentives; otherwise, domestic market prices for edible oils could rise rapidly.