High Import Costs Drive Up Edible Oil Prices in Tamil Nadu

04-May-2026 04:03 PM

Chennai: In the southern state of Tamil Nadu, the prices of imported edible oils—particularly sunflower oil and palm oil—are currently running high and showing an upward trend. The price of locally produced coconut oil also remains firm at elevated levels. Consequently, household kitchen expenses for the common people have risen, and small-scale traders are facing difficulties in conducting their business. The ongoing conflicts—between Iran and the U.S. in the Middle East, and between Russia and Ukraine in the Black Sea region—have driven up the cost of importing edible oils, thereby exerting a direct and profound impact on the domestic market.

In recent weeks, a substantial hike of at least ₹15–20 per liter has been recorded in the retail prices of various edible oils. It is noteworthy that India's reliance on imported edible oils has surged to between 55% and 60%; therefore, whenever import costs rise, domestic market prices naturally follow suit. In India, palm oil is primarily imported from Indonesia, Malaysia, and Thailand, while sunflower oil is sourced from Russia, Ukraine, and Argentina. Soybean oil is imported from Argentina and Brazil.

According to wholesalers, the price of branded sunflower oil—which previously hovered around ₹155 per liter—has now climbed to ₹175 per liter. For certain renowned brands, the retail price of sunflower oil has surged to over ₹200 per liter. Similarly, the price of palm oil has also risen by ₹15, reaching a range of ₹135–140 per liter.

This surge in prices is causing severe hardship for the common people. Although the prices of other food commodities have also risen, the increase in edible oil prices is causing the greatest distress. If this situation persists, it could place an immense financial burden on the middle class. Furthermore, this price escalation has heightened the concerns and difficulties faced by small-scale operators within the food industry—including hotels, restaurants, *dhabas* (roadside eateries), and snack vendors. These operators rely heavily on palm oil.

Due to the shortage and high prices of commercial LPG, the cost of many food items has already risen by up to 20 percent; now, however, operators are being compelled to further raise the prices of their products due to the cost of edible oil.