News Capsule: Edible oil prices firm up amid West Asia tensions
05-Mar-2026 12:33 PM
News Capsule: Edible oil prices firm up amid West Asia tensions
★ The ongoing conflict involving Iran in West Asia and the sharp rise in crude oil prices have started to strengthen edible oil prices in India. Although there has been no major disruption in supply so far, higher crude oil prices are expected to push up the landed cost of imported oils.
★ Palm oil is mainly imported from Malaysia and Indonesia, while soybean oil comes from Argentina and Brazil. At present, there are no logistical disruptions affecting these supplies. Sunflower oil, which is largely sourced from Russia and Ukraine through the Black Sea route, has also not been directly impacted yet.
★ However, rising crude oil prices increase demand for biodiesel, which in turn puts upward pressure on international edible oil prices. As a result, the landed prices of imported edible oils in India are likely to rise.
★ By the end of February, the landed price of crude soybean oil had increased by about 6 percent, while sunflower oil prices were up nearly 13 percent. If the West Asia crisis continues for a longer period, edible oil prices could rise by another $30–40 per tonne in the coming days.
★ Brent crude prices have also surged to around $83–85 per barrel, the highest level since July 2024. If tensions persist, this could eventually reflect in higher retail prices of edible oils in India.