Edible Oil Demand Revival In India Food Services Sector Weak, Says Trade Body

NEW DELHI, Nov 24 (Bernama) -- The recent revival in edible oil consumption in India's coronavirus-hit food services sector is weak as the pandemic persists, a trade group said on Monday. The demand destruction suffered by the hotel and restaurant segment is huge and despite an increase in takeaways and home deliveries, consumption growth is not significant, the Mumbai-based Solvent Extractors' Association (SEA) said. Hopes of a sharp recovery are fading, said the group, which represents vegetable oil refiners. India's vegetable oil imports between November 2019 and October 2020 dropped 13 per cent to 13.53 million tonnes from the previous 12-month period mainly due to low demand in the food services segment since April. Palm oil constituted 55 per cent of the imports while the remainder was mainly made up of soybean and sunflower oils. Indian edible oil imports are expected to be between 12.5 million tonnes and 13.5 million tonnes in the 12-month period until October next year, SEA president Atul Chaturvedi said. Despite rising oil prices, Chaturvedi favours higher import tariffs and wants refined palm oil to remain on the "banned list" of products to encourage local oilseed production and greater utilisation of domestic refining capacity. "We feel this bull run in edible oils is actually a blessing in disguise as it will enthuse the oilseed farmers and encourage them to expand acreage and productivity. However, if the government feels that the prices have reached a 'biting point' for the consumers, then a suitable downward tweaking of the import duty can be resorted to," Chaturvedi said. According to local media reports, the Indian government is concerned about rising retail edible oil prices. India depends on imports for about 70 per cent of its requirements. -- BERNAMA