Producers of edible oils reduce prices by up to 15%, expect to increase demand

Higher prices affected consumption.

“Currently, demand for edible oil has been affected by higher prices, worsened by the summer season, which has usually seen a contraction in demand,” said Nirmal Bang, quoting Atul Chaturvedi, president of the Indian Solvent Extraction Association and adviser to Adani Wilmar. . during interaction. Of the total consumption of edible oil of 22 million tons, mustard oil is 4.5 million tons, palm oil 7.5-8 million tons, soybean oil 5.5-5.75 million tons and sunflower oil – 2 million tons.

“In 2019, consumption of 18 kg per capita was reported, which is now expected to fall to 16.5 kg. But with the monsoon season coming and the festival season coming, demand needs to pick up. ”

As for palm oil, Chaturvedi said, exports have not smoothed out, although Indonesia has lifted a ban on exports.

Falling prices and marketing drive, which often plays on health concerns about unbranded sales, are likely to boost demand.

“We have seen consumers reduce trade, but mostly in the hope that prices will be regulated downwards. There is also a movement towards offering value-added packages where consumers seek to manage consumption and costs by buying reusable packaging at a lower price, not just disposable packaging, ”said Akshay D’Souza, chief specialist. on insights and growth of the retail intelligence platform, Bizom, said BQ Prime.

“But over the last decade, we’ve seen consumers’ preferences for cooking oil turn to branded items for convenience and quality. “During the many waves of Covid-19, we have seen that preferences for branded products are increasing, especially value-added products such as blended spices or healthy oils,” he said. “As prices are now adjusted downwards, the shift from unmarked to branded will continue over time.”

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