Reportedly 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. 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 Oct. 31, said Angshu Mallick, deputy chief executive of adani Wilmar, a leading edible oil refiner in the country. That would be the lowest imports since 2010/11, according to data from India’s Solvent Extractors Association (SEA).
Mallick said “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”. Edible oil consumption in india trebled over the past two decades as the population rose, incomes increased, and people started to eat out more. 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 impact of the shuttered food courts and street vendors is compounded by reduced demand at retail stores. “We prefer buying sunflower oil. We never bought palm oil,” said mumbai native Pradnya Chavan, who has been cooking more meals at home since local eateries closed in late march because of the COVID-19 outbreak.
