Gujarat groundnut oil prices have climbed to a record Rs 3,050 for a 15-kilogram tin ahead of Diwali, even as the state is expected to produce about 50.33 lakh tonnes of groundnuts this year. The latest Rs 30 increase has added to household expenses during the festival season and widened the gap between groundnut oil and some other edible oils.
The price of a 15-kilogram tin had reached Rs 3,020 before rising to Rs 3,050, the highest level reported in three years. The increase has come as demand for edible oil typically rises during Diwali, when households purchase larger quantities for cooking and festive preparations.
The movement has not been uniform across the edible-oil market. Cottonseed oil, which was previously priced between Rs 2,590 and Rs 2,650 per tin, has declined to a range of Rs 2,580 to Rs 2,630. This represents a reduction of about Rs 20. Palm oil prices have also fallen by Rs 15, while sunflower oil and some other edible oils have remained stable, according to the report.
The rise in groundnut oil prices is notable because Gujarat is one of India’s largest groundnut-producing states. The state contributes an estimated 45% to 50% of the country’s total groundnut output. Gujarat’s average annual production is placed at around 50 lakh to 51 lakh tonnes, compared with approximately 125 lakh tonnes for the country as a whole.
Agriculture Department estimates cited in the report indicate that Gujarat’s groundnut production could reach about 50.33 lakh tonnes in the current year. Despite a partially weak monsoon, the state’s kharif groundnut crop is described as broadly normal. Groundnut arrivals are also continuing at several agricultural market yards.
The current estimate is higher than production in 2022-23 and 2023-24, when Gujarat produced approximately 45 lakh tonnes of groundnuts in each year. The reported increase in production and continuing arrivals have therefore not translated into lower groundnut oil prices for consumers.
The report says groundnut prices received by farmers are currently about 25% to 30% higher than last year. Higher raw-material prices can feed into the cost of pressing, processing and distributing oil, although the available report does not provide a detailed breakdown of the share contributed by each part of the supply chain.
For consumers, the immediate impact is a higher cost for a staple cooking product. A Rs 3,050 price for a 15-kilogram tin means families buying groundnut oil for regular cooking and festival use are paying more at a time when other household expenses also tend to rise. The difference between groundnut oil and cottonseed or palm oil may also influence purchasing choices, although the report does not provide evidence on how consumers are responding.
The price movement places the focus on the balance between remunerative prices for farmers and affordable edible oil for consumers. The report states that government authorities are responsible for ensuring that growers receive viable prices while consumers can obtain groundnut oil at reasonable rates. It does not identify any immediate government intervention or market-control measure.
The next developments will depend on groundnut arrivals, festival demand and movement in prices across the edible-oil market. For now, Gujarat consumers face a record groundnut oil price despite the state’s high production estimates.
