Edible oil imports had fallen by 14% during the oil year 2019-2020 as hotels and eateries remain close due to Covid-19 lockdown.
During the first six months of the oil year 2019-20 from November to April, edible oil imports decreased by 14% to 6.1 million tonnes compared to the corresponding period a year ago, rating agency CARE said in its report. This decline was primarily on account of a sharp 70% fall in imports of refined palm oil that stood at 0.36 million tonnes during the period.
Imports of edible oil in India during the current oil year (November 2019 – May 2020) stood at 6.8 million tonnes compared to 8.3 million tonnes for the same period last year, a y-o-y fall of 18.1%.
Also, 14% decline in inbound shipments of crude palm oil impacted the overall imports. This was due to subdued demand from Hotel, Restaurant and Café (HoReCa) segment (the major consumer of palm oil) because of Covid-19 induced lockdown. However, the demand for soyabean oil and sunflower oil increased by 13% and 12%, respectively, as household demand in consumer packs increased.
The demand for edible oils in India was affected due to lockdown situation in the country. Even while restrictions are eased with unlock guidelines; consumption from bulk consumers (major segment) continues to face challenges as home deliveries and takeaway are preferred over dining at restaurants by some consumers.
Also, restaurants are advised to operate at reduced capacities which are driven by regulations in respective locations. Further, restriction on social gatherings is also affecting demand of edible oils. All these factors will continue to keep the consumption levels of edible oils low in the country which, in turn, will support the downward trend in their imports.
Moreover, restrictions on social gatherings will also impact edible oils demand. All these factors will continue to keep the consumption levels of edible oils low in the country which, in turn, will support the downward trend in their imports during the ongoing oil year.
