India Groundnut Oil Price Trend (₹/MT)

Key Takeaway

• Factors affecting Groundnut Oil prices: Prices are primarily influenced by groundnut production, acreage, crop yields, weather conditions, mandi arrivals, kernel availability and groundnut stocks. Since groundnut oil is produced through crushing, groundnut seed prices, oil recovery rates, crushing volumes and processor margins directly affect its cost. Domestic edible-oil demand, particularly from households, food processors, restaurants and snack manufacturers, is a key demand driver. Prices are also influenced by competing oils such as soybean, palm, sunflower and rapeseed/mustard oil, as consumers and processors can substitute between oils based on relative prices.
• Global vegetable-oil prices, international groundnut availability, export demand, import duties, government policies, edible-oil imports and currency movements can influence the domestic market. Additionally, quality parameters, refining costs, packaging, transportation, seasonal availability, inventory levels, regional demand, festival-season consumption and trader activity contribute to short-term price movements.