Understanding Groundnut Oil Pricing: What You Need to know

Groundnut oil, a staple in Indian kitchens, has been cherished for generations for its rich nutty flavour and numerous health benefits. From tempering spices to deep-frying, this versatile oil has a wide range of culinary applications. 

However, with the increasing popularity of cold-pressed groundnut oil, many consumers wonder why cold pressed oil is expensive. We've broken down the factors that contribute to the cold-pressed groundnut oil price, including the quality of raw materials, the extraction process, and the brand's reputation.

What is Groundnut Oil?

Groundnut oil is extracted from groundnuts, a legume rich in healthy fats, proteins, and vitamins. Traditionally, groundnut oil was extracted through a cold-pressing method, which involves crushing the groundnuts between heavy stones and wood to extract the oil. This process retains the oil's natural aroma, flavour, and nutritional value.

Why Groundnut Oil is So Popular

Groundnut cold pressed oil has gained immense popularity due to its numerous benefits, both culinary and health-related:

• Rich Nutty Flavour: Groundnut oil imparts a distinct, subtle nutty flavour to dishes, enhancing their overall taste.
• High Smoke Point: Its high smoke point makes it suitable for various cooking methods, including frying, sautéing, and baking.
• Heart Health: Groundnut oil is rich in monounsaturated fatty acids, which can help lower bad cholesterol levels and reduce the risk of heart disease.
• Skin Health: The oil is often used in skincare products due to its moisturising properties.
• Hair Health: It can nourish hair and prevent hair loss when applied to the scalp.

Factors Affecting the Price of Groundnut Oil

Several factors contribute to the price of groundnut oil, including:

Quality of Raw Materials:

• Groundnut Quality: The quality of the groundnuts used for oil extraction significantly impacts the final product's quality and price. High-quality groundnuts with optimal moisture content and free from impurities command a higher price.
• Sourcing: The source of the groundnuts, whether locally sourced or imported, can influence the cost.

Extraction Process:

• Cold-Pressed vs. Refined: Cold-pressed oils, being minimally processed, are generally more expensive than refined oils, which undergo chemical treatments to extend their shelf life.
• Traditional vs. Modern Methods: Traditional groundnut oil extraction processes, like cold-pressing, are labour-intensive and time-consuming, leading to higher costs.

Packaging and Branding:

• Packaging Materials: The type of packaging used, whether glass, plastic, or tin, affects the overall cost. Gramiyaa oils come in opaque, paper-based cartons that shield the oil from sunlight, preserving its freshness while contributing to a greener environment by reducing plastic use and carbon emissions.
• Better Quality Packaging: Brands often invest in premium packaging, marketing, and quality control to create a superior product. These investments can contribute to a higher price, but they also ensure that you're getting the best possible product.

Supply and Demand:

• Seasonal Variations: The availability of groundnuts fluctuates with seasons, impacting supply and demand.
• Global Market Trends: Global market trends, such as increased demand for healthy oils, can influence prices.

Additional Factors:

• Transportation Costs: The cost of transporting groundnuts from the source to the processing facility can impact the final price of the oil.
• Energy Costs: The energy required for the extraction and refining process can also influence the price.
• Government Regulations: Government regulations, such as import duties and taxes, can affect the cost of groundnut oil.
• Competition: The level of competition in the market can also impact pricing.
• Inflation: Inflationary pressures can lead to increased costs for raw materials, labour, and energy, which can be passed on to consumers in the form of higher prices.

What goes into making Gramiyaa's cold pressed groundnut oil

Gramiyaa's cold-pressed groundnut oil is a premium product that comes with a slightly higher price tag compared to refined oils. However, there are several reasons why it's worth the extra cost:

• Superior Quality Raw Materials: We source only the finest quality groundnuts, ensuring optimal flavour, aroma, and nutritional value. Unlike many other brands that use lower-quality, cheaper groundnuts, we prioritise quality over cost. We use groundnuts with optimal moisture content, stored and transported hygienically to prevent the development of harmful aflatoxins. Additionally, we choose groundnuts with higher nutritional content and better flavour profiles, which can be more expensive than regular varieties.
  
  
• Traditional Cold-Pressing Technique: The oil is extracted using traditional, slow-paced methods that preserve the natural goodness of the oil. We use traditional wood-pressed mills to extract the oil, which minimises the use of heat and chemicals, preserving the oil's delicate flavour and aroma. This process is labour-intensive and time-consuming, contributing to the higher cost.
  
  
• Minimal Processing: We minimally process the oil, avoiding the use of chemicals and additives that can compromise its quality. The oil is filtered through cotton cloth to remove impurities, but no further processing is done, ensuring that the oil retains its natural nutrients and antioxidants. This approach differs from refined oils, which undergo extensive processing, often using low-quality raw materials.
  
  
• Strict Quality Control: We adhere to rigorous quality control standards, ensuring that the final product meets the highest quality benchmarks. We have an in-house laboratory where the oil is tested for purity, acidity, and other quality parameters. This ensures that the oil is free from contaminants and meets the highest quality standards. We also discard any groundnuts or oil that doesn't meet our stringent quality standards. Additionally, we conduct monthly testing by external FSSAI certified laboratories to maintain the highest level of quality assurance.
  
  
• Yield and Cost of Production: It takes approximately 2.2 kg of groundnuts to produce 1 litre of cold-pressed groundnut oil. With the current market price of groundnuts around 90 rupees per kg (as of October 2024), the cost of raw materials alone is significant. Additionally, the extraction process is energy-intensive and requires skilled labour, further adding to the overall cost.
  
  
• Avoiding Adulteration: By prioritising quality and transparency, Gramiyaa ensures that its products are free from adulteration. This commitment to quality comes at a cost, as it requires rigorous testing and quality control measures.
  
  

By investing in these aspects, Gramiyaa delivers a superior product that offers numerous health benefits and culinary advantages. While the price may be higher than some other brands, the quality, purity, and taste of Gramiyaa's cold-pressed groundnut oil make it a worthwhile investment for health-conscious consumers.

When looking at cold-pressed groundnut oil prices in India, it's essential to consider factors like the quality of raw materials, the extraction process, and the brand's reputation. While cold-pressed groundnut oil may be slightly more expensive, its numerous health benefits and superior taste make it a worthwhile investment. By opting for brands like Gramiyaa, you can ensure that you're getting the best quality product.