India unlikely to face edible oil shortage, but prices may rise: Sunvin Group CEO
Sunvin Group CEO Sandeep Bajoria warned India may face higher edible oil imports and firmer prices as Indonesia tightens palm oil export controls and pushes biodiesel blending from B40 to B50. He said rising Indonesian domestic consumption and possible El Niño-related crop risks could further tighten global supplies.
India may have to depend more on imports and brace for firmer edible oil prices as Indonesia moves to tighten control over its natural resources and pushes higher use of palm oil for biodiesel, according to Sandeep Bajoria, CEO of Sunvin Group.
Bajoria said Indonesia’s proposal to monitor exports through a state-backed system has created uncertainty in the global palm oil market. Since Indonesia is the world’s largest palm oil producer and exporter, any change in its export policy tends to impact prices and supply chains globally.
He said the move could temporarily disrupt pricing and trade flows, though Indonesia would still need to export surplus palm oil regardless of the route adopted.
A bigger concern for importing countries like India is Indonesia’s aggressive biodiesel programme. The shift from B40 to B50 blending could significantly increase domestic palm oil consumption, reducing exportable surplus.
Bajoria noted that Indonesia’s own food and fuel needs are rising, which may limit global availability over time.
For India, that could mean greater supply uncertainty. However, Bajoria said the country is unlikely to face an outright shortage because edible oils such as soybean and sunflower oil can partly substitute palm oil.
“Prices will go up, that is possible,” he said, while adding that India’s overall edible oil supply remains manageable due to availability from other global markets.
Bajoria also flagged weather risks as another challenge ahead. He warned that the possible impact of El Niño and extreme heat conditions could hurt India’s Kharif crop output, potentially forcing the country to step up imports of agricultural commodities in the coming months.
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Source : CNBC Tv18
