Cooking oil prices rose by up to 5% in wholesale markets on Monday, tracking a sharp rally in global edible oil benchmarks and crude oil prices amid escalating tensions in West Asia.
Soyabean oil futures on the Chicago Board of Trade and palm oil contracts on Bursa Malaysia and Indonesian exchanges firmed up, mirroring gains in crude oil. Market participants said the spike in energy prices has strengthened demand for soyabean and palm oils as biodiesel feedstock, tightening supplies available for food use.
“When crude oil prices rise, diversion of soyabean and palm oil toward biodiesel increases, which in turn tightens edible oil supplies,” said Nirav Desai, managing partner at GGN Research. He noted that although India’s cooking oil imports neither originate from nor transit through conflict-hit Middle Eastern routes, domestic prices tend to track global movements in crude and edible oil markets.
Traders reported heightened buying interest in wholesale mandis, driven by concerns over further price increases if geopolitical tensions escalate. “Despite it being a lean season, demand for cooking oil increased by 3–5% on Monday as traders and buyers anticipated supply and price disruptions,” said Shankar Thakkar, Maharashtra secretary at the Confederation of All India Traders (CAIT).
Retail prices typically adjust with a lag of a few weeks after wholesale rates move up, traders said, suggesting consumers may see higher prices on store shelves in the coming weeks if the trend persists.
Dry Fruits Turn Costlier
The impact of the West Asia conflict is also being felt in the dry fruit market. Prices of dates surged 10–20% following disruptions in shipments from Iran, Afghanistan and trading hubs in the UAE, tightening availability in domestic markets.
Dates witness seasonal demand during Ramadan, when they are traditionally consumed to break the fast. Supply disruptions during this period have amplified the price impact, traders said.
Other dry fruits and nuts have also recorded gains. Prices of almonds, pistachios and dried figs have risen by 5–8% since the onset of the conflict, reflecting supply uncertainties and higher logistics costs.
Market participants said developments in West Asia have a direct bearing on India’s dry fruit trade, given the region’s role as a key sourcing and trading hub.
With crude oil markets remaining volatile and geopolitical risks elevated, traders expect edible oil and dry fruit prices to stay firm in the near term.