Edible Oil Prices Likely to Remain Firm During Festive Season
25-Aug-2026 03:12 PM
Mumbai: The area under kharif oilseed crops has reached almost the same level as last year, while crop conditions remain largely normal across most major producing regions, barring a few areas. Large quantities of edible oils continue to be imported from overseas. Harvesting of early-sown soybean generally begins around mid-September, but this year it may be delayed somewhat. Groundnut, sesame and sunflower crops are expected to arrive on schedule.
Official data show that the area under kharif oilseed crops has reached 188.30 lakh hectares this year, just 32,000 hectares lower than last year’s 188.69 lakh hectares. The area under soybean declined from 122.26 lakh hectares to 121.35 lakh hectares, but this was partly offset by an increase in sesame acreage, which rose from 9.39 lakh hectares to 10.81 lakh hectares. Groundnut acreage increased from 48.22 lakh hectares to 48.79 lakh hectares, while sunflower acreage rose from 61,000 hectares to 1.10 lakh hectares. Although castor acreage declined from 7.42 lakh hectares to 5.88 lakh hectares, it is not an edible oilseed crop and therefore is unlikely to affect the edible oil market.
The ongoing Russia-Ukraine war is significantly affecting sunflower oil imports. Although imports from Argentina continue, available stocks there remain limited. Refiners in southern India that previously imported crude sunflower oil from Russia and Ukraine are now giving preference to soybean oil from Argentina and Brazil and palm oil from Indonesia and Malaysia. Sunflower oil prices may therefore remain relatively high. Coconut oil prices have also started rising in southern India due to the Onam festival.
As for mustard oil, prices are expected to remain firm at elevated levels in northern and eastern India. Mustard is currently trading at around ₹7,000 per quintal in wholesale markets, while mustard with 42% oil content is selling above ₹8,000 per quintal. Along with mustard oil, prices of refined soybean oil may also rise further during the festive season.