Edible Oil Prices Drop Sharply Across India: Mustard, Groundnut, and Soybean Oils See Notable Decline
Edible oil prices in India dropped sharply this week, influenced by falling global crude palm oil rates and U.S. tariff changes. Mustard, groundnut, soybean, palm, and cottonseed oils all saw notable price cuts. Crude palm oil dipped to $1,160/tonne globally. Analysts warn of continued volatility due to global economic shifts, reduced consumer demand, and tightening price gaps between major edible oils.
New Delhi, April 6, 2025 Edible oil prices across India witnessed a significant drop this week, driven by international market fluctuations following U.S. tariff changes. Major oils such as mustard, groundnut, soybean, crude palm oil, palmolein, and cottonseed oil all reported notable reductions in wholesale prices.
International Factors Influence Domestic Market
Experts attribute the declining trend to softening crude palm oil (CPO) prices in the global market. CPO, which stood at $1,200–$1,205 per tonne last week, dipped to $1,160–$1,165 per tonne. The narrowing gap between palm oil and soybean prices, from $100 to about $60, weakened market sentiment further.
Mustard Oil Prices Fall Across Categories
- Mustard Seed: ₹6,200–₹6,300/quintal (↓ ₹75)
- Mustard Dadri Oil: ₹13,000/quintal (↓ ₹450)
- Mustard Pakki Ghani Oil: ₹2,340–₹2,440/tin (↓ ₹40)
- Mustard Kachi Ghani Oil: ₹2,340–₹2,465/tin (↓ ₹40)
These consistent reductions highlight easing demand and possible oversupply in the mustard oil market.
Groundnut Oil Sees Notable Drop
- Groundnut Oilseed: ₹5,700–₹6,075/quintal (↓ ₹150)
- Groundnut Oil (Gujarat): ₹14,200/tin (↓ ₹450)
- Groundnut Solvent Refined Oil: ₹2,235–₹2,535/tin (↓ ₹55)
These declines mark the growing competitiveness among oils, particularly as groundnut oil contends with reduced consumer spending.
Crude Palm and Palmolein Oils Dip Further
- Crude Palm Oil (CPO): ₹12,700/quintal (↓ ₹350)
- Palmolein (Delhi): ₹14,100/quintal (↓ ₹400)
- Palmolein (ex-Kandla): ₹13,100/quintal (↓ ₹350)
Being widely used in food processing and restaurants, falling palm oil prices could bring down food inflation if the trend continues.
Cottonseed Oil Also Down
- Cottonseed Oil: ₹13,500/quintal (↓ ₹375)
Following broader trends, cottonseed oil prices aligned with the downtrend, adding further pressure to oilseed markets.
Market Outlook: More Volatility Ahead
Analysts caution that this downtrend may persist amid global economic uncertainties and geopolitical tensions. With supply chains adjusting post-tariffs and demand fluctuating, price instability is expected in the coming weeks.
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Source : Udaipur Kiran
