Rising grocery prices strain household budget amid disruption in supplies

Box: Price hike in essential commodities

Normal refined oil up from Rs 125 to Rs 140

Branded refined oil up from Rs 160 to Rs 180

Mustard oil up from Rs 160 to Rs 200

Rice bran oil up from Rs 180 to Rs 210

Washing powder up from Rs 70 to Rs 85

Desi ghee (clarified butter) up from Rs 620 to Rs 650

Sugar up from Rs 44 to Rs 50 per kg

Prabhjot Kaur, a housewife and mother of two growing children, is distressed by the sharp rise in grocery prices. She says household incomes have not increased in line with inflation, particularly on essential items, leaving her struggling to manage her kitchen budget.

She said the recent escalation of the West Asia conflict and disruptions in global supply chains had triggered a steep rise in the prices of grocery items, including edible oils and sugar, over the past week. Prices of edible oils, including mustard, vegetable, soybean and rice bran oils, have surged by 20 to 25 per cent in the past 10 days. Sugar, which was earlier selling at around Rs 43 per kg, is now priced between Rs 50 and Rs 52 per kg. A similar increase has been recorded in detergent powder prices.

Harpreet Singh, an employee of a private limited company, said the absence of a dearness allowance in private-sector jobs made inflation particularly difficult to absorb. “Any rise in prices means we have to dip into our monthly savings, which affects our long-term financial plans,” he said.

Omkar Goyal, president of the Punjab Karyana Retailers Association, attributed the increase in edible oil prices to a higher import bill, which has pushed up the prices of refined, mustard and vegetable oils by more than 20 per cent.

He said disruptions in global supply chains, rising freight and insurance costs, depreciation of the rupee, and oil-exporting countries diverting cooking oils towards biofuel production had contributed to the price escalation.

“The confrontation between the USA and Iran has also contributed to a sharp rise in grocery prices, putting additional pressure on common households,” he said.

Goyal added that the impact was inevitable as India imports more than 55 per cent of its edible oil requirements from countries such as Indonesia, Malaysia, Thailand, Ukraine, Russia and Argentina.

The sharpest increase of 20 to 25 per cent was witnessed in edible oils. Refined oil prices rose from Rs 125 to Rs 140 per litre, branded refined oil from Rs 160 to Rs 180, mustard oil from Rs 160 to Rs 200, and rice bran oil from Rs 180 to Rs 210. Washing powder prices also increased from Rs 70 to Rs 85, with variations across brands.

Desi ghee (clarified butter) prices were also affected, rising from Rs 620 to Rs 650 per kg. The price of a 100-gram butter pack increased from Rs 55 to Rs 60.

Amid rising retail inflation, middle-and lower-income groups have been the worst affected by the increase in prices of essential commodities. A retail merchant from the holy city, Comrade Buta Ram, said companies had moved away from standard weight packaging for several consumer goods, including edible oils.

“A large number of customers do not realise they are paying more because the quantity has been reduced. Edible oils are now available in packs of 650 gm, 670 gm, 680 gm and 800 gm,” he said.

The price of sugar, a daily-use commodity, has increased from Rs 44 to Rs 50 per kg, upsetting household budgets. Retail karyana merchants said continued inflation in essential commodities could force customers to reduce consumption, which would eventually affect their sales.

Prof Kuldeep Kaur, former head of the Punjab School of Economics at Guru Nanak Dev University, said India’s cooking oil imports were valued at $18.3 billion in 2024-25, highlighting the country’s dependence on overseas supplies. “Any disruption in supply chains, especially on sea routes, has an adverse impact on cargo tariffs. It is bound to reflect in retail commodity prices,” she said.