Edible Oil Prices Could Stay High Long After Onion Surge

India's consumers are bracing for higher grocery bills as prices of kitchen staples such as onions, cooking oil, sugar, rice, and pulses have risen sharply over the past year.

The all-India average retail price of onions has more than doubled to ₹54.13 a kg on September 24 from ₹27.21 a year ago, according to data maintained by the Department of Consumer Affairs. Wholesale prices have also more than doubled to ₹4,617 a quintal from ₹2,107.

While onion prices are expected to ease as fresh crops arrive in markets, edible oil prices could keep household costs elevated for longer due to global supply chain disruptions and the West Asia conflict.

Crucially, India's import dependence leaves domestic prices of pulses and edible oil exposed to global prices, import costs, and currency movements. Madhavi Arora, chief economist at Emkay Global Financial Services, said part of the increase in vegetable prices is seasonal and weather-related.