Groundnut oil prices surge despite record production in Gujarat

Prices of groundnut oil have risen sharply in Gujarat over the past four days, defying expectations amid record production and steady domestic demand. Traders report that the price of groundnut oil has increased by ₹120 per 15 kg can in just four days, including a ₹30 rise on Monday alone, pushing up the cost of cooking oil for households by around ₹8 per kg.

According to official estimates, groundnut production in Gujarat stood at 46.45 lakh tonnes in 2022–23 and rose to 52.50 lakh tonnes in 2024–25.

This year, the state has recorded a bumper harvest of around 66 lakh tonnes — the highest on record. Despite the surge in output, domestic demand has remained largely unchanged, there have been no imports, and large quantities of groundnuts continue to arrive daily at the Rajkot APMC.

Even so, prices have climbed rapidly. Last Wednesday, the price of a 15 kg can of groundnut oil ranged from ₹2,565 to ₹2,615. This rose by ₹20 on Thursday, ₹40 on Friday, another ₹20 on Saturday, and following the Sunday holiday, an additional ₹30 on Monday. Traders noted that this amounts to eight consecutive increases within just four days.

Market sources noted that groundnut oil prices had remained subdued after Diwali but have been rising steadily since. “There has been no major jump in sales, and demand remains normal,” a trader said, adding that the price rise does not appear to be driven by consumption patterns.

As groundnut oil becomes costlier, consumers have reportedly begun shifting back to cottonseed oil to manage household expenses. While groundnut oil was only ₹50–100 more expensive than cottonseed oil some time ago, the price gap has now widened to around ₹485 per can. 

In contrast, cottonseed oil and palm oil prices have remained relatively stable, with only a marginal increase of about ₹20 per can over the same four-day period.

Groundnut oil is traditionally the preferred cooking oil in Gujarat. While the recent increase may have little impact on wealthier consumers, it is expected to strain household budgets for millions who continue to rely on government-provided rations. For such families, an increase of ₹8 per kg within four days adds to the pressure of rising living costs.