The discussion around cooking oil in India has been growing rapidly, especially when it comes to traditional oils like groundnut oil. If we look at the basic economics, one kilogram of groundnuts currently costs around ₹200. From that, we only get about 300–350 ml of oil through normal extraction. This means that to produce one litre of groundnut oil, we need roughly 3-4 kilograms of groundnuts, making the raw material cost alone close to ₹800.
But this is only the beginning. When we add other expenses like electricity, machinery maintenance, labour charges, filtration, packaging, storage (warehouse rent), transportation, distributor margins (5-10%), retailer margins (5-10%), branding, advertising, and GST, the total production cost can easily reach around ₹900 to ₹1000 per litre. Logically, this should be the market price of pure groundnut oil.
However, in reality, we see oil packets being sold in the market for just ₹200–₹250 per litre. This raises an important question, how is this possible? The answer lies in industrial extraction techniques. Normally, when seeds are processed mechanically, only about 30-35% oil is extracted. But when companies use a petroleum-based solvent like hexane, they can extract up to 90-95% of the oil from the same seeds. This significantly reduces production costs.
After extraction, the oil goes through multiple refining stages such as degumming, neutralization, bleaching, winterization, and deodorization. These processes are designed to improve shelf life, remove impurities, and enhance appearance. But at the same time, they also change the natural structure, taste, and nutritional profile of the oil.
Another important factor is the blending of oils. In many cases, cheaper imported oils like palm oil from Indonesia and Malaysia or soybean oil are mixed with other oils. This helps companies keep prices low while maintaining large-scale supply. As a result, what consumers think is “pure oil” may actually be a blended and highly processed product.
The quality of raw materials used is also a concern. In large-scale production, broken, damaged, or lower-grade seeds may be used. Unlike traditional oil extraction methods such as ganuga or wood-pressed systems, where quality is more visible and controlled, industrial processes allow the use of mixed-quality inputs.
For many years, people have been told that groundnut oil increases cholesterol and causes heart problems, while refined oils like sunflower oil are better for heart health. This idea was widely promoted through advertisements and even recommended by some doctors. However, the truth is that all plant-based oils are naturally cholesterol-free, as cholesterol exists only in animal-based foods. So, labels like “zero cholesterol” are technically correct but can be misleading, since this is true for all vegetable oils.
Recently, there has been a shift in awareness. People are now moving back towards traditional oils like cold-pressed or wood-pressed oils. With increasing awareness, even large companies have started entering this segment, offering cold-pressed oils at higher prices. This clearly shows that consumer demand is influencing the market.
At the same time, it is important to understand that today almost everything in our diet has become “refined” like refined flour, refined sugar, refined salt, and refined oil. These refined foods have slowly become a part of our daily lives, not naturally, but because of continuous marketing and easy availability created by large companies.
Among all these, refined oil has become an essential part of daily cooking. There is hardly any household where cooking happens without it. But the question remains what exactly is refined oil, and how is it made?
Technically, refined oil goes through several stages such as degumming, neutralization, bleaching, winterization, and deodorization. In simple terms, oil is first extracted from seeds like groundnut or sunflower. But instead of traditional methods, companies use a chemical solvent like hexane to extract almost all the oil from the seeds. These seeds are heated at very high temperatures, allowing maximum extraction.
After this, strong chemicals like phosphoric acid, caustic soda, and bleaching agents are used to remove natural components such as gums, free fatty acids, colour, and smell. In the process, beneficial nutrients like vitamins, enzymes, and natural fatty acids are also removed. By the end, the oil loses its original taste, aroma, and nutritional value.
To make the oil look appealing again, artificial adjustments are made in colour, smell, and shelf life. Preservatives and anti-foaming agents may also be added. In some cases, cheaper oils are blended in large proportions while still being marketed under a single oil name.
As a result, what we consume daily may be a highly processed product with very little natural value. Regular consumption of such oils may contribute to health issues like heart disease, high blood pressure, digestive problems, and other long-term concerns.
Most people assume that health problems come from outside food like fried snacks, burgers, or restaurant meals. But the reality is that a major part of the problem may actually lie in our own kitchens, especially in the oil we use every day.
Given this situation, consumers need to be more aware. Buying groundnuts and getting oil extracted locally, if possible, is one of the best ways to ensure purity. Using oil in moderation and choosing traditional, minimally processed oils can make a significant difference.
In conclusion, the issue is not just about refined oil being good or bad. It is about understanding the process, the cost, and the quality behind what we consume. Low-cost oils are often highly processed and optimized for mass production. As awareness increases, the responsibility lies with consumers to make informed choices.
Because in the end, health is not decided occasionally by what we eat outside
it is shaped every single day by what we use in our own kitchen.
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