High Edible Oil Prices to Aid in Boosting Oilseed Production

21-May-2026 01:20 PM

New Delhi. Prices of various edible oils are currently running high in the international market. Freight and insurance charges for maritime shipments have increased significantly, and the value of the Rupee against the Dollar has depreciated to an all-time low. Consequently, the import of edible oils into India has become more expensive, which has, in turn, driven up the prices of domestically produced edible oils.

As a result, oil millers and processors face no hesitation or difficulty in purchasing oilseeds from farmers at higher prices. Farmers are receiving remunerative prices for their oilseeds, a factor expected to boost their enthusiasm for—and interest in—cultivating these crops.

While mustard is produced during the Rabi season, soybean and groundnut are cultivated during the Kharif season. Mustard prices have consistently remained above the government's support price for a prolonged period; similarly, in recent months, the prices of soybean and groundnut have surged to levels significantly above their respective Minimum Support Prices (MSP).

This trend is ensuring profitable returns for farmers. Provided that weather and monsoon conditions remain normal or favorable, the acreage under cultivation for oilseed crops—including soybean and groundnut—is expected to witness a substantial increase during the upcoming Kharif season.

According to the Solvent Extractors' Association of India (SEA), the MSP for mustard has been fixed at ₹6,200 per quintal this season, whereas its average wholesale market price is currently hovering around ₹7,000 per quintal.

Similarly, the MSP for soybean is set at ₹5,328 per quintal, and for groundnut at ₹7,263 per quintal, while their respective wholesale market prices are trading significantly above these levels. This scenario is likely to provide farmers with a strong incentive to increase their production.