Indian Palm Oil Demand Drops as Food Service Sector, Households Seek Alternatives

Palm oil demand in India, the world’s top edible oil importer, is set to plunge this year as coronavirus lockdowns slash food service sector demand and households opt for alternatives at the supermarket, the Business Standard reported.  

India’s palm oil imports could plunge 20% from a year ago to 7.5 million tons in the 2019/20 marketing year ending on October 31, said Angshu Mallick, deputy chief executive of Adani Wilmar, a leading edible oil refiner in the country. “Hotels, restaurants are not opening the way we were expecting after the lockdown. People are not going out and eating the way they use to,” Mallick said.  That would be the lowest imports since 2010/11, according to data from India’s Solvent Extractors Association (SEA).  

Palm oil became the most widely used and imported oil but mainly for bulk buyers such as food processors and for use in restaurants. Indian households typically opt for premium alternatives such as sunflower oil and that has left palm vulnerable as lockdowns to prevent the spread of the coronavirus have reduced food consumption outside the home, the report said. The impact of the shuttered food courts and street vendors is compounded by reduced demand at retail stores.