Cooking oil demand from big buyers to fall 30-35%

NEW DELHI: Retail cooking oil sales have started increasing but demand from big buyers such as hotels, bakeries and caterers remains weak, said industry executives.Demand from big buyers is likely to fall 30-35% this year, said Sudhakar Desai, president of the Indian Vegetable Oil Producers’ Association (IVPA), an apex organisation of vegetable oil producers in the country.Sale to households is likely to rise, though, said Desai. “With restaurant and hotels closed, consumers are cooking at home and procuring more oil,” he said.Household consumption in the past month, when the country was under a lockdown triggered by Covid-19, increased 10-15%, according to Angshu Mallick, deputy chief executive officer at Adani Wilmar.“The situation is slowly improving and once the green and orange zones are opened, then we can expect, by May 15, distribution and sales to further pick up,” said Mallick. In the past month, sale of packed oil in the country was 1.2 million tonnes, out of which 60% was sold to households and the rest to big buyers. Sales to big buyers halved during this period, said Mallick. The bakery sector has resumed 40% of its orders while institutional sales may start once factories and companies open, said Mallick.

from Economic Times https://ift.tt/2VSEYYh