Summer cools off domestic demand for edible oil in may

KOLKATA | DELHI: Domestic demand for edible oils in May declined by 10% from a year ago, say manufacturers, as price volatility and summer heat saw consumers cutting down its buy.

“Both wholesalers and retailers have not picked up required volumes, as they wanted to stay away from fluctuation in prices,” said Angshu Mallick, chief operating officer of Adani Wilmar, a joint venture of India’s Adani Group and Singapore’s Wilmar International.

“There was a feeling in the market that prices will decline, and that is why they had put their purchase on hold.” Another reason, Mallick said, was fewer weddings (oil consumption is high then) in May.

“Prices of soyabean oil and palm oil have remained more or less the same, in April and May. We are hoping that June sales will be better if monsoon arrives on time,” he said. Siraj Chaudhry, chairman of Cargill India, says edible oil sales dip in May and June and recover by July.