The impact of the Middle East conflict has begun to affect the Indian household. And this time, it's not just about LPG shortages. Indian kitchens are incomplete without edible oils. From pooris to parathas, samosas to jalebis, and the world-famous Indian curries, nearly everything depends on edible oils. The irony: India relies heavily on imports to meet its demand, making it extremely vulnerable to global shocks.
In just one month, between February 24 and March 24, 2026, the price of sunflower oil rose from Rs 175 to Rs 181 per kg, according to the Department of Consumer Affairs. Palm oil, too, became costlier during the same period, rising by Rs 5 to Rs 141 per kg, while the price of soybean oil rose by Rs 4 per kg. Prices of groundnut, vanaspati and mustard oils also jumped up by Rs 3 per kg.
Role Of Edible Oils In Indian Kitchens
Edible oils are a major source of dietary fats, energy, and fat-soluble vitamins in India. They help to combat hidden hunger and improve calorie intake, particularly among underprivileged and malnourished populations.
"Despite this dual importance, the country's growing demand for edible oils has outpaced domestic production," according to the Indian government. While the production has increased significantly, the rise in consumption has been more substantial.
How Much Oil An Average Indian Consumes
In 2022-23, an average Indian in urban areas consumed nearly 12 kg of edible oils every year, and those in rural areas consumed around 11 kg per year. In 2004-05, consumption stood at around 8 kg per year (urban) and around 6 kg per year (rural).
To fulfil this huge demand for edible oils, India depends 56 per cent on imported oils and 44 per cent on domestic production.
Edible Oil Imports In India
India imported edible oils worth $11.8 billion in 2017, which rose to $21.1 billion in 2022, and dipped slightly to $18.6 billion in 2025, according to the Ministry of Commerce. Of the total edible oil imports in 2025, 41 per cent was palm oil, 35 per cent was soybean oil and 18 per cent was sunflower oil.
National Mission On Edible Oils - Oilseeds (NMEO-OS)
Considering India's huge dependence on imports and the cost associated with it, the government has approved the National Mission on Edible Oils - Oilseeds in 2024. The mission aims for self-sufficiency in edible oil production and will be implemented for a seven-year period, from 2024-25 to 2030-31, with an outlay of Rs 10,103 crore.
The mission primarily focuses on increasing the production of key oilseed crops such as rapeseed-mustard, groundnut, soybean, sunflower, sesamum, safflower, niger, linseed and castor. It also aims to improve extraction from secondary sources like cottonseed, coconut, rice bran, etc.
