Edible oil may go the 'onion way' prior to festivals
Updated: Jul 29, 2013 02:57:51pm
New Delhi, Jul 29 (KNN) Edible oil is likely to go the 'onion way' during the forthcoming festive season, the Associated Chamber of Commerce and Industry of India (ASSOCHAM) has said, cautioning the government to take adequate precautionary measures to prevent hoarding otherwise.
“Heavy demand during the festive period, demand will increase by over 40 per cent and the retail price of edible oil may jump by 20- to 25 per cent if a distributive mechanism was not strengthened all over the country,” Chamber Secretary General D S Rawat said.
Normally, edible oil usage soars during the festive season in the post-monsoon phase, as millions of people consume sweets, fried delicacies and other stuff during the September-December festive season, he added.
Also the demand for edible oil by biscuits and snacks manufacturers and restaurants may further increase at the retail level by 20-25 per cent during the festival season owing to demand - supply gap.
In 2012, India was the largest importer of edible oil, obtaining over 50 per cent of its demand and emerged as the second largest consumers after China, the Chamber said in a note titled “Indian Edible Oil Scenario.”
Referring to the report, Rawat said, “India’s overall demand for edible oil touched 15.6 million tonnes last year, as against 27 million tonnes in China. Demand is growing at about 6 per cent per annum and is expected to top 23 million tonnes in about five years.”
The edible oil consumption in the country has increased at a brisk pace over the years with growing population and increase in per capita consumption (edible oils taken into account here are soy oil, groundnut, mustard, sunflower, safflower, sesame, coconut oil, rice bran oil and cottonseed oil), the ASSOCHAM study said.
He pointed to the increasing trend in spending and better living standards as a result of higher income levels, owing to which the high growth in consumption of edible oils will continue.
India imports about 60 per cent of its domestic demand. It imports palm oil from Indonesia and Malaysia and soyabean oil from Brazil and Argentina. Palm oil accounts for the bulk of the imports (73 per cent), with soyoil adding another 20 per cent. The edible oil imports are projected to increase to more than 15 million tonne by 2020, from 11 million tonne estimated in on going 2012-13 year, adds the report.
Since the rise in supply is increasingly falling short of demand, the country's dependence on imports is only expected to shoot up. (KNN/SD)
“Heavy demand during the festive period, demand will increase by over 40 per cent and the retail price of edible oil may jump by 20- to 25 per cent if a distributive mechanism was not strengthened all over the country,” Chamber Secretary General D S Rawat said.
Normally, edible oil usage soars during the festive season in the post-monsoon phase, as millions of people consume sweets, fried delicacies and other stuff during the September-December festive season, he added.
Also the demand for edible oil by biscuits and snacks manufacturers and restaurants may further increase at the retail level by 20-25 per cent during the festival season owing to demand - supply gap.
In 2012, India was the largest importer of edible oil, obtaining over 50 per cent of its demand and emerged as the second largest consumers after China, the Chamber said in a note titled “Indian Edible Oil Scenario.”
Referring to the report, Rawat said, “India’s overall demand for edible oil touched 15.6 million tonnes last year, as against 27 million tonnes in China. Demand is growing at about 6 per cent per annum and is expected to top 23 million tonnes in about five years.”
The edible oil consumption in the country has increased at a brisk pace over the years with growing population and increase in per capita consumption (edible oils taken into account here are soy oil, groundnut, mustard, sunflower, safflower, sesame, coconut oil, rice bran oil and cottonseed oil), the ASSOCHAM study said.
He pointed to the increasing trend in spending and better living standards as a result of higher income levels, owing to which the high growth in consumption of edible oils will continue.
India imports about 60 per cent of its domestic demand. It imports palm oil from Indonesia and Malaysia and soyabean oil from Brazil and Argentina. Palm oil accounts for the bulk of the imports (73 per cent), with soyoil adding another 20 per cent. The edible oil imports are projected to increase to more than 15 million tonne by 2020, from 11 million tonne estimated in on going 2012-13 year, adds the report.
Since the rise in supply is increasingly falling short of demand, the country's dependence on imports is only expected to shoot up. (KNN/SD)
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