COMMODITY
Edible oil demand likely to decline during March-April amid nationwide lockdown: SEA
Mar-30-2020

Amid nationwide lockdown to fight against coronavirus disease, Solvent Extractors' Association of India (SEA) has said that edible oil demand is likely to decline at least during March-April as hotels and restaurants have closed down. Hotel, Restaurants and Cafeterias (HoReCa) segment accounts for 40% of the country's total edible oil demand at 230 lakh tonnes annually.

SEA Executive Director B V Mehta said that edible oil imports and processing activities have also slowed down, but there is sufficient stock in the country to meet domestic demand. He said ‘our monthly consumption of edible oil is 18-19 lakh tonnes per month. The demand will certainly fall as hotels, restaurants and cafeterias have closed down.’ However, he said it would be difficult to estimate the extent of fall as household consumption might increase slightly during lockdown period.

Mehta said imports of vegetable oils (comprising edible and non edible oil) too have slowed down, but there is no concern about availability. He said there is some labour shortage and logistics issues but those are getting sorted out. India's total demand for edible oil is around 230 lakh tonnes annually, which is largely being met through imports.

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