HYDERABAD: A sharp increase in the prices of edible oils, pulses, sugar and vegetables across Hyderabad has begun to weigh heavily on household budgets, adding to the burden of already elevated fuel and cooking gas costs.
Consumers across the city are feeling the pinch as the cost of essential food items continues to rise, while traders warn that prices could remain under pressure in the coming months due to a combination of global geopolitical tensions, rising transportation costs and domestic supply concerns.
Among the commodities witnessing the steepest increases are edible oils. Refined vegetable oils and seed oils have become costlier by `20 to `30 per litre over the last three months, with mustard oil and some varieties of palm oil now retailing between `180 and `190 per litre in several parts of Hyderabad.
Traders say prices could soon cross the Rs 200-per-litre mark if current trends continue. Sunflower oil, including popular brands such as Freedom, Gold Drop and Sunpure, is currently selling between `150 and `190 per litre, while palm oil ranges from `110 to `140 per litre.
Groundnut oil, considered a premium cooking oil, is retailing at `170 to `185 or more per litre, while rice bran oil is priced between `150 and `165 per litre. Bulk purchases have also become more expensive, with 15 litre tins and cans now costing between `2,300 and `2,900 depending on the brand and oil variety.
According to traders, global supply disruptions, rising freight charges and the continuing conflict in West Asia have significantly contributed to the increase. The geopolitical turmoil has disrupted shipping routes and pushed up transportation costs, which are eventually passed on to consumers.
Profiteering aggravating situation: Traders
However, trader associations have alleged that hoarding and profiteering by some wholesalers and retailers are further aggravating the situation. They argue that wholesale prices have increased only marginally, by around `5 per litre in some cases, while retail prices have risen disproportionately.
Traders claim that certain retailers are charging `15 to `20 more per litre on popular oil brands despite only limited increases in wholesale costs.
“Wholesale rates have seen only a limited increase, but some retailers are charging `15 to `20 more per litre for popular oil brands,” said Anul, a trader from Begum Bazaar.
The upward trend is not limited to edible oils. Prices of pulses have also risen steadily. Tur dal is now selling between `121 and `140 per kilogram compared with `118 to `131 in March. Urad dal has increased from `108-`128 per kg to `117-`140 per kg, while moong dal has climbed from `102-`110 per kg to `111-`120 per kg.
Gram dal, which was available at around `80 per kg a few months ago, is now retailing between `83 and `90, while masoor dal has increased to `89-`100 per kg from around `87 previously. Though these increases may appear moderate individually, they are significantly adding to monthly household expenditure when combined with higher prices across other food categories.
Vegetable prices have also witnessed a sharp spike in Hyderabad’s retail markets. Tomatoes, brinjal, bitter gourd, carrots and drumsticks are now being sold for `80 to `90 per kilogram in many local markets, compared with `40 to `60 per kg only a few months ago.
At Monda Market and other busy vegetable markets across the city, shoppers voiced concern over the relentless rise in living costs. Many pointed out that petrol, diesel and LPG prices had already stretched household budgets before the latest increase in food prices.
“Petrol, diesel and LPG prices are already high. Now vegetables and edible oils are becoming unaffordable,” said a customer at Monda Market. “Every visit to the market costs more than the previous one, and managing household expenses has become increasingly difficult.”
The local price surge comes at a time when Telangana continues to record the highest inflation among all states and major Union Territories in the country. While India’s overall Consumer Price Index (CPI) inflation remains relatively moderate at 3.48% in April 2026, comfortably below the Reserve Bank of India’s 4% target, Telangana recorded an inflation rate of 5.81%. The state had also topped the inflation chart in March at 5.83% and in January at 4.92%, making it the highest-inflation state for three consecutive months.
Economists believe Telangana’s inflation story is more complex than a temporary rise in vegetable prices. Research suggests that the state is experiencing above-average inflation across almost every category of consumer spending, including food, housing, healthcare, transportation, education and utilities.
Analysts attribute this trend partly to Telangana’s transformation into a service-oriented economy following the state’s bifurcation in 2014. The services sector now contributes nearly 67% of Telangana’s Gross Value Added, making the state’s economy far more urbanised and service-driven than neighbouring Andhra Pradesh. This means households spend more on housing, transport, healthcare and education categories where prices tend to remain elevated once they rise.
“Telangana’s inflation is no longer being driven by one or two commodities alone,” said economist B Sudhakar Reddy, director, ICSSR-SRC & Dean, faculty of Social Sciences. Osmania University. “The rise is visible across food, transport, housing, healthcare and services, which makes it more difficult to contain.”
The inflation picture has also been influenced by the rebasing of the CPI series in 2024. Economists note that Telangana’s current position at the top of the inflation rankings is particularly striking because the state had recorded the lowest inflation in the country just a year earlier. “In March 2025, inflation in Telangana stood at only 1.06%, and the state even experienced periods of deflation during mid-2025. This dramatic turnaround reflects both changes in statistical weighting under the new CPI series and genuine increases in the cost of living,” Sudhakar Reddy added.
The disruption caused by tensions involving Iran and the strategically important Strait of Hormuz has driven global crude oil prices sharply higher. Average global crude prices reached nearly $104 per barrel in April 2026, with Brent crude briefly crossing $111 per barrel. Economists warn that energy prices are projected to rise by approximately 24% during 2026, while overall commodity prices could increase by 16%. The impact of these increases extends far beyond fuel, affecting transportation, manufacturing and agriculture.
“The conflict has affected global shipping routes and pushed up freight costs, which eventually get reflected in commodity prices,” said trade analyst P Ramesh.
Traders’ associations in Hyderabad have urged the government to step in and closely monitor market practices to prevent hoarding and unfair pricing. They have called for stronger oversight of wholesale and retail markets, along with measures to stabilise transportation and import costs. Industry representatives argue that timely intervention could help prevent excessive mark-ups and provide relief to consumers who are already struggling with rising living expenses.
As families across the city grapple with mounting grocery bills, the months ahead may prove critical in shaping the cost-of-living landscape for Telangana and the country as a whole.
Southwest monsoon impact
Economists are also closely monitoring the progress of the southwest monsoon, which could play a decisive role in determining food inflation during the remainder of the year. “Kharif crops such as rice, pulses and oilseeds are sown between June and August.
If rainfall is poor during this crucial sowing period, farmers reduce acreage, resulting in lower production and tighter supplies,” says Sudhakar Reddy. “What matters most is not just how much rain falls, but when it falls,” he adds. “Poor rainfall during sowing months can permanently affect acreage, while deficiencies later in the season generally affect yields.”
“People often focus only on the monsoon, but temperature is becoming equally important,” P Ramesh said. “Heat stress affects vegetables, dairy production and supply chains even in years when rainfall remains near normal.”