Industry assures govt of smooth cooking oil supplies for next 2 months

The edible oil industry has assured the government that it will ensure smooth supply of sunflower and other cooking oils for the next two months, amid concerns over possible disruption in supplies due to the Russia-Ukraine war, sources said on Friday.

India imports a large quantity of sunflower oil from Ukraine.

A meeting chaired by Food and Consumer Affairs Minister Piyush Goyal on Friday, reviewed the supply situation of cooking oils, including sunflower oil.

According to the sources, the industry also informed the ministry about a declining trend in edible oil prices in the last two days.

Retail prices of mustard oil could further cool down on arrival of the new mustard crop, they added.

The meeting was attended by Solvent Extractors Association (SEA) President Atul Chaturvedi, Indian Vegetable Oil Producers' Association (IVPA) Secretary General S P Kamrah and representatives of leading refiners and importers, including Adani Wilmar, Ruchi Soya and Modi Naturals.

"During the meeting, the industry informed the minister that there is no shortage of sunflower oil. For March delivery, the first shipment of 1.5 lakh tonnes of sunflower oil had left Ukraine before the war itself and is expected to arrive soon," one of the sources said.

Out of the 18 lakh tonnes of edible oil consumption in a month in India, the share of sunflower oil is about 1.5-2 lakh tonnes. Only about 1 lakh tonnes of sunflower oil is required to meet the demand of hardcore consumers.

The sources said the industry also told the ministry that there was no need to worry as there were alternatives for sunflower oil in the country in the form of mustard and soyabean oils.

The "prices of edible oils are cooling down in the last two days and the industry assured the ministry of maintaining a smooth supply and price line," one of the sources said.

The supply will be comfortable in the country in the next 2-3 months with the arrival of about 11 lakh tonne of new mustard crop, the sources added.

India meets more than 60 per cent of its edible oil demand through imports. The domestic edible oil prices have come under pressure taking global cues.