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Indian Express
a day ago
- Business
- Indian Express
Kandla port congestion may cause edible oil shortage: Traders to Govt
Traders have warned of edible oil shortages in local markets and supply disruptions as several vessels — mainly carrying Indonesian crude palm oil — remain stranded at Kandla Port, awaiting cargo unloading amid 'heavy congestion'. India is the world's largest importer of palm oil, with monthly imports totalling 750,000 tonnes. Kandla is a key port that supplies major refineries catering to western and northern India. In letters to the government, the Solvent Extractors' Association of India (SEA), representing key stakeholders in the edible oil industry, has said that only two vessels with a combined capacity of 45,000 tonnes are currently discharging cargo, while as many as eight vessels carrying 157,000 tonnes — are waiting for berths. The congestion is particularly concerning as five more vessels, with a total capacity of 159,000 tonnes, are expected to arrive within the next week, it has said. When contacted, Sushil Kumar Singh, Chairman of Deendayal Port Authority (DPA), Kandla, told The Indian Express: 'The congestion is the result of a sudden surge in edible oil vessel arrivals after import duties were reduced in May. At present, six edible oil and six chemical vessels are waiting at anchorage. The average waiting time is 8-10 days. We've tightened operational protocols and are working to address the issue as efficiently as possible.' This comes amid sharp fluctuations in palm oil prices. Traders typically increase purchases when prices drop. Last month, India's palm oil imports hit a six-month high, driven by low domestic inventories and a favourable price gap compared to soybean and sunflower oils, Reuters reported. However, palm oil futures have since surged following the US's proposal to raise biofuel blending mandates. The SEA has warned that the waiting period could increase to 15–20 days, based on the expected vessel line-up. Such prolonged delays 'could lead to a scarcity of edible oil in the local market, impacting the supply chain,' it has said. 'The situation has further deteriorated, as Kandla Port has resorted to pulling out edible oil vessels mid-discharge. In the past week alone, three such vessels — each with just 1,000 to 3,000 tonnes of cargo remaining — have been withdrawn or shifted from berths,' the SEA said in a letter to the Ministry of Consumer Affairs, Food and Public Distribution on June 16, following up on an earlier communication sent on June 11. The congestion has wide-reaching implications as the extended waiting periods are incurring significant demurrage costs, thereby increasing overall import expenses and pushing up edible oil prices for consumers. Jitendra Srivastava, CEO of Triton Logistics & Maritime, said the congestion of shipments at Kandla Port reinforces the need to upgrade India's port infrastructure and optimise maritime logistics at the earliest. 'With vessel wait times reaching up to 48 hours, the ripple effects are felt across the entire supply chain, from exporters to consumers. As trade volumes continue to escalate, there is a pressing need for ports across the country to incorporate smart technologies, automate, and improve berthing and cargo handling capabilities to sustain future demand,' Srivastava said. 'Principal solutions include improved vessel traffic control, enhanced inter-agency coordination, and investment in technological aids such as predictive analytics to enable more effective port flow management. Upgrading berths, modernising the container terminal, and developing warehousing space are equally important to avoid bottlenecks and achieve faster turnaround times,' Srivastava said. 'As per port norms, any vessel pulled out for any reason can only be re-berthed after three days – which, in practice, can take 3-5 days — along with additional port charges for de-berthing, re-berthing, pilotage and other marine services. Meanwhile, the vessel accrues demurrage by the hour and once under demurrage, it continues to incur charges. Ironically, this practice does little to ease the congestion,' SEA said. Total oil imports have fallen over the past seven months. Between November 2024 and May 2025 — the first seven months of the 2024–25 oil year — vegetable oil imports stood at 7,884,768 tonnes, down 9 per cent from 8,678,447 tonnes during the same period last year, SEA noted. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
Business Recorder
a day ago
- Business
- Business Recorder
Indian rapeseed meal exports soar as China replaces Canadian supply
MUMBAI: China is set to make record purchases of rapeseed meal from India following Beijing's move to impose a 100% retaliatory tariff on Canadian imports, senior industry officials said. India's rapeseed meal exports will help China, the world's top consumer, replace imports from Canada while easing pressure on local rapeseed prices in India where there are large stockpiles of the widely used animal feed. 'Indian rapeseed meal is very competitive compared to other origins. That's why China has been increasing purchases since March,' B.V. Mehta, executive director of the Solvent Extractors' Association of India, told Reuters. India's rapeseed meal exports to China are likely to jump to a record 500,000 metric tons in the 2025/26 marketing year which started in April, up from the last year's 60,759 tons, Mehta said. In the first two months of 2025/26, India exported 113,836 tons of rapeseed meal to China, which imposed a 100% retaliatory tariff on rapeseed meal and oil imports from Canada starting on March 20. In 2024, China imported 2.02 million metric tons of rapeseed meal from Canada, 504,000 tons from the United Arab Emirates, and 135,000 tons from Russia, according to customs data. It bought 13,100 tons from India. China allows imports of rapeseed meal, soybean meal from Uruguay India, the world's third-largest rapeseed producer, had struggled to export significant amounts of rapeseed meal to China because of higher prices in the past. But now India is offering rapeseed meal at around $202 per ton on a free-on-board (FOB) basis compared to around $300 for supplies from the European Union, traders said. 'China has emerged as the biggest buyer of Indian rapeseed meal from nowhere. It is buying more than 50,000 tons every month,' said one of the leading exporters. South Korea, Bangladesh, Thailand, and Vietnam traditionally account for the bulk of India's rapeseed meal exports. India badly needs edible oils to fulfill local demand amid lower imports in the past few months, said the exporter. 'Higher rapeseed crushing because of Chinese demand for meal is improving rapeseed oil supplies,' he said. India, the world's biggest importer of vegetable oils, buys palm oil mainly from Indonesia and Malaysia, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.
Time of India
a day ago
- Business
- Time of India
Indian rapeseed meal exports soar as China replaces Canadian supply
China is set to make record purchases of rapeseed meal from India following Beijing's move to impose a 100% retaliatory tariff on Canadian imports, senior industry officials said. India's rapeseed meal exports will help China, the world's top consumer, replace imports from Canada while easing pressure on local rapeseed prices in India where there are large stockpiles of the widely used animal feed. "Indian rapeseed meal is very competitive compared to other origins. That's why China has been increasing purchases since March," B.V. Mehta , executive director of the Solvent Extractors' Association of India , told Reuters. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Buy Brass Idols - Handmade Brass Statues for Home & Gifting Luxeartisanship Buy Now Undo India's rapeseed meal exports to China are likely to jump to a record 500,000 metric tons in the 2025/26 marketing year which started in April, up from the last year's 60,759 tons, Mehta said. In the first two months of 2025/26, India exported 113,836 tons of rapeseed meal to China, which imposed a 100% retaliatory tariff on rapeseed meal and oil imports from Canada starting on March 20. Live Events In 2024, China imported 2.02 million metric tons of rapeseed meal from Canada, 504,000 tons from the United Arab Emirates, and 135,000 tons from Russia, according to customs data. It bought 13,100 tons from India. India, the world's third-largest rapeseed producer, had struggled to export significant amounts of rapeseed meal to China because of higher prices in the past. But now India is offering rapeseed meal at around $202 per ton on a free-on-board (FOB) basis compared to around $300 for supplies from the European Union, traders said. "China has emerged as the biggest buyer of Indian rapeseed meal from nowhere. It is buying more than 50,000 tons every month," said one of the leading exporters. South Korea, Bangladesh, Thailand, and Vietnam traditionally account for the bulk of India's rapeseed meal exports. India badly needs edible oils to fulfill local demand amid lower imports in the past few months, said the exporter. "Higher rapeseed crushing because of Chinese demand for meal is improving rapeseed oil supplies," he said. India, the world's biggest importer of vegetable oils, buys palm oil mainly from Indonesia and Malaysia, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.
Time of India
12-06-2025
- Business
- Time of India
India's May palm oil imports surge 84% m/m to hit six-month high
India's palm oil imports jumped to a six-month high in May, driven by low inventories and the tropical oil's price discount to rival soyoil and sunflower oil, which prompted refiners to boost purchases, an industry body said on Thursday. Higher imports of palm and soyoil by India, the world's biggest buyer of vegetable oils, could support Malaysian palm oil prices and U.S. soyoil futures. Palm oil imports rose 84 per cent in May from April to stand at 592,888 metric tons, the highest since November 2024, the Solvent Extractors' Association of India (SEA) said. India imported an average of more than 750,000 tons of palm oil each month during the marketing year that ended in October 2024, the SEA said. Imports of soyoil increased 10.4 per cent to 398,585 tons, the highest since January, and sunflower oil imports rose 1.9 per cent to 183,555 tons, it added. Higher imports of palm oil and soyoil lifted India's total vegetable oil imports in May by 33 per cent from a month before to 1.19 million tons, the highest since December, it said. Below-average imports from January to April reduced domestic vegetable oil stocks to 1.33 million tons by June 1, the lowest since July 2020, according to SEA data. Palm oil imports are likely to increase further in June and could rise to about 850,000 tons, as the oil is trading at a discount to soyoil, said Rajesh Patel, managing partner at GGN Research, an edible oil trader. Soyoil imports in June will hold steady around 400,000 tons, Patel said. India buys palm oil mainly from Indonesia and Malaysia, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine. Vegetable oil imports are expected to pick up in the coming months as this month's duty cut will help boost demand, said a New Delhi-based trader. India halved the basic import tax on crude edible oils to 10 per cent in a bid to reduce food prices and help the domestic refining industry.
Time of India
12-06-2025
- Business
- Time of India
India's May palm oil imports surge 84% m/m to hit six-month high
India's palm oil imports surged to a six-month peak in May, driven by attractive pricing compared to soyoil and sunflower oil, alongside dwindling inventories. This surge propelled overall vegetable oil imports to 1.19 million tons, the highest since December. Anticipated increased palm oil imports in June, potentially reaching 850,000 tons, are expected due to the continued price advantage. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's palm oil imports jumped to a six-month high in May, driven by low inventories and the tropical oil's price discount to rival soyoil and sunflower oil, which prompted refiners to boost purchases, an industry body said on imports of palm and soyoil by India, the world's biggest buyer of vegetable oils, could support Malaysian palm oil prices and U.S. soyoil oil imports rose 84% in May from April to stand at 592,888 metric tons, the highest since November 2024, the Solvent Extractors' Association of India (SEA) imported an average of more than 750,000 tons of palm oil each month during the marketing year that ended in October 2024, the SEA of soyoil increased 10.4% to 398,585 tons, the highest since January, and sunflower oil imports rose 1.9% to 183,555 tons, it imports of palm oil and soyoil lifted India's total vegetable oil imports in May by 33% from a month before to 1.19 million tons, the highest since December, it imports from January to April reduced domestic vegetable oil stocks to 1.33 million tons by June 1, the lowest since July 2020, according to SEA oil imports are likely to increase further in June and could rise to about 850,000 tons, as the oil is trading at a discount to soyoil, said Rajesh Patel, managing partner at GGN Research, an edible oil trader. Soyoil imports in June will hold steady around 400,000 tons, Patel buys palm oil mainly from Indonesia and Malaysia, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and oil imports are expected to pick up in the coming months as this month's duty cut will help boost demand, said a New Delhi-based halved the basic import tax on crude edible oils to 10% in a bid to reduce food prices and help the domestic refining industry.
