Cuttack: Edible oil prices in Odisha have risen sharply over the past two months, with traders linking the increase to a combination of global geopolitical tensions and heightened local demand.
According to sources, the price of refined edible oil has risen by Rs 10 in the past three to four days and is now being sold at Rs 170 per litre at Malgodown, one of Cuttack’s major wholesale markets. Similarly, the price of palm oil has gone up by Rs 5 per litre, climbing from Rs 102 to the current Rs 107 per litre.
General Secretary of the Cuttack Chamber of Commerce Prafulla Kumar Chhatoi, however, said that the price rise has been gradual rather than abrupt, starting as early as January and persisting through recent w
eeks. He reported that edible oils have climbed by approximately Rs 20 to Rs 25 per litre during this period. He attributes much of the pressure to the ongoing conflict in West Asia, which has disrupted supply chains and reduced imports of edible oils into India.
India is the world’s largest importer of edible oils, relying on foreign sources for 55–60% of its consumption. Key imports include crude palm oil from Indonesia and Malaysia, and sunflower/soybean oil (refined) from Russia and Ukraine. This dependence, especially for palm oil, makes India’s supply chain vulnerable to geopolitical tensions and logistical bottlenecks.
Compounding the supply-side challenges is the shift in consumer behavior amid fears of further spike in the prices. Many households are stockpiling larger amounts of oil, driving a surge in demand that has now exceeded available supply, thus pushing the prices upward, Chhatoi noted.
Meanwhile, consumers have voiced concerns over the impact on household budgets. Traders anticipate that prices may remain elevated until global supply stabilises or domestic factors ease the demand pressure.