Higher onion, pulse and edible-oil prices squeeze Indian households before festivals
Indian households face higher prices for onions, pulses and cooking oils ahead of the festival season. Edible-oil producers may raise prices by another 7-8% as import costs climb, while weak rainfall threatens domestic crop output.
Staple prices strain household budgets
Indian households are facing a broad increase in the cost of kitchen staples ahead of the Dussehra, Chhath Puja and Diwali festival period. Retail prices for pigeon pea, onions, potatoes, tomatoes and edible oils have risen, putting additional pressure on family budgets in Uttar Pradesh and other parts of the country.
Official data from the Department of Consumer Affairs, cited by The Bharat Now, put the average retail price of arhar, or tur, dal at 124.23 rupees per kilogram, compared with 113.66 rupees per kilogram in the same period a year earlier. Prices for chickpeas, urad, mung beans and lentils have also increased, although the publication did not provide figures for those products.
Onions recorded the sharpest increase among the vegetables covered. Their average retail price reached 54.23 rupees per kilogram on 20 September, more than double the 25.97 rupees recorded in the comparable period last year. Tomatoes rose to 39.16 rupees per kilogram from 36.48 rupees, while potatoes remained above 22 rupees per kilogram.
Edible-oil companies face higher import costs
The Bharat Now reported that average retail edible-oil prices had increased by as much as 31 rupees per kilogram over the past year. Groundnut oil climbed to 208.44 rupees per kilogram from 186.93 rupees, while mustard oil rose to 201.02 rupees from 188.80 rupees.
A further increase may follow. ABP Live reported that companies could raise edible-oil prices by 7-8% before the coming festival season. This would be the third round of increases since March. Two previous rounds lifted prices by 5-6% each, producing a cumulative increase of 10-12% between March and June. Another adjustment would take the total rise since March to about 18-20%.
India imports approximately 58% of its edible-oil requirements, according to ABP Live. The Bharat Now placed the share at 60%, illustrating the country’s substantial exposure to global prices and exchange-rate movements. Data from the Solvent Extractors’ Association of India, cited by ABP Live, showed crude palm oil at $1,265 per tonne at Mumbai ports on 18 September, compared with $1,314 for crude soybean oil and $1,380 for crude sunflower oil. Palm and soybean oil costs were 11% higher than a year earlier, while sunflower oil was 7% more expensive.
Weather and global supply add pressure
The increase in landed costs reflects a weaker rupee, higher transport expenses and increased insurance premiums. Aditya Agarwal, a director at Emami Group, told ABP Live that landed costs for crude edible oils had risen by about 8-11%, potentially leaving companies with little option but to pass the increase to consumers. Emami Agrotech owns the Healthy & Tasty and Best Choice cooking-oil brands.
Supply risks extend beyond imports. The Bharat Now said rainfall across India was about 15% below normal as of 17 September. Insufficient rain in major kharif-producing regions could affect rice and oilseed yields, adding domestic production risk to already elevated import costs.
International conditions are also tightening availability. Palm oil accounts for 50-60% of India’s edible-oil imports, and major suppliers Indonesia and Malaysia are directing significant volumes into biofuel production, according to The Bharat Now. India also sources a large share of its sunflower oil from Russia and Ukraine. The continuing war and disruption to Black Sea shipping have affected supply chains and raised costs for Indian buyers, refiners and consumers.
