Rising cooking oil costs hit households

• India's cooking oil prices have risen by nearly 20 per cent this year
• Global supply issues and biofuel demand are driving the price surge
• Government may cut import duties by 5 per cent to provide relief

If your monthly grocery bill has started to feel heavier, you’re not imagining it. The rising cost of cooking oil, a staple in every Indian kitchen, is becoming a noticeable strain on household budgets across the country. But what's behind it?

A Global Price Squeeze

The primary reason your cooking oil is getting more expensive is due to international factors. India is the world's largest importer of vegetable oils, sourcing nearly two-thirds of its supply from other countries. This means when global prices for palm, soybean, and sunflower oil rise, Indian consumers feel the pinch directly. Prices for vegetable oils have climbed by nearly 20% over the last year. This surge is linked to several issues, including disruptions from the war in Ukraine, unpredictable weather patterns impacting harvests in major producing countries, and rising demand for biofuels. For instance, key suppliers like Indonesia and Malaysia are diverting more palm oil to produce biodiesel, reducing the amount available for export as food.

The Government's Balancing Act

The Indian government is aware of the pressure on households, especially with the festive season of September to November approaching, a time when oil consumption for sweets and snacks typically increases. In response, officials are considering a cut in import duties to help bring down domestic prices. However, it's a delicate balance. A significant duty cut could help consumers but might negatively affect Indian farmers by making imported oil much cheaper than locally grown oilseeds like mustard and soybean. Industry experts suggest a modest 5% cut in the basic import duty is being weighed as a potential compromise to offer some relief without hurting domestic producers.

Why It Hits Home

For the average family, this isn't just a matter of market trends; it's about the daily cost of making dal, sabzi, and pakoras. With per capita consumption of edible oil in India steadily rising over the years, households are more sensitive than ever to price fluctuations. The increase in cooking oil prices joins other rising costs for essential commodities, adding to overall food inflation and putting a significant strain on middle-class and low-income families. Many are already forced to consider reducing consumption or switching to cheaper, often less healthy, alternatives to manage their kitchen expenses.

Smart Ways to Manage Oil Costs

While you can't control global markets, you can adopt smarter habits in the kitchen to soften the blow. One of the most effective changes is to simply measure your oil with a spoon instead of pouring it freely from the bottle. Also, consider your cooking methods. Instead of deep-frying, explore alternatives like air-frying, baking, grilling, or steaming, which use significantly less or no oil. Using non-stick cookware can also drastically reduce the amount of oil needed for sautéing and frying. For dishes that need a coating of oil, like dosas or parathas, using an oil spray or a silicone brush ensures an even, thin layer, cutting down on waste.

Looking Beyond Price

This period of high prices also offers a chance to re-evaluate the types of oil we use. While refined sunflower and soybean oils are common, rotating them with traditional options like cold-pressed groundnut, coconut, or mustard oil can be a good strategy. Each has a different flavour profile and health benefits. For example, cold-pressed groundnut oil is great for general-purpose cooking, while mustard oil offers a robust flavour for specific regional dishes. While not always cheaper, investing in a variety of oils allows you to use the right oil for the right purpose, and often in smaller quantities, focusing on flavour rather than just a cooking medium.