Refined edible oil inflation doubles in four months as global tensions hit Indian kitchens

The geopolitical turbulence rattling global energy markets has found its way to a quieter but equally important front — the Indian grocery shelf.

Refined edible oil inflation has more than doubled over the last four months. Mustard oil prices have surged sharply. Branded cooking oils now retail anywhere between Rs 110 and Rs 207 per litre, depending on the category and pack size. For households already stretched by fuel costs, this is one more number that does not go unnoticed.

A problem that spreads beyond the bottle

What makes edible oil inflation particularly stubborn is how far its effects travel. It does not stay contained to the cooking oil aisle.

The effect might end up showing on your grocery bill items as well. The edible oil is used in many packaged snacks, bakery items, ready-to-eat foods and daily-use products, and hence it might cause a slow burn. 

That spread is now showing up across FMCG categories. Biscuits, namkeen, frozen foods, instant meals and bakery products are all becoming more expensive as manufacturers absorb rising input costs and eventually pass them on.

Akshay Modi, Managing Director of Modi Naturals Limited, told NDTV that the disruption runs deeper than most consumers realise. Global geopolitical tensions have rattled commodity markets well beyond crude oil, and edible oil is among the most exposed. He added that rising crude prices are pushing up not just oil procurement costs but also packaging expenses, lamination, plastics, and paper, all of which form a significant share of what FMCG companies spend.

Why India is especially vulnerable

Industry experts say India's position makes it particularly susceptible to these pressures. The country imports close to 60 percent of its edible oil requirements, which means domestic prices move with global supply disruptions, shipping costs, and currency shifts.

The Russia-Ukraine conflict had already squeezed global sunflower oil supplies. Now, renewed tensions in the Middle East and elevated freight costs are putting pressure on vegetable oil markets once again.