The demand for vegetable oils in India will probably decrease for the first time in decades, as the government in New Delhi has also ordered a 21-day shutdown due to the corona crisis and restaurants have been closed.
Edible oils are the most important medium for cooking in India's kitchens. The steady population growth over the past two decades has made the subcontinent the largest vegetable oil importer in the world. Many traders and market participants agree that the demand for palm and soybean oil imports will now drop below the 23 million tons. During the 21-day lockdown in the economy that started last Friday, edible oil consumption could drop by at least 25%. This corresponds to around 475,000 tons.
India recently consumed around 1.9 million tons of it every month. 2/3 of these have to be imported. Weaker demand from India is now weighing on the prices of palm oil futures on Bursa Malaysia. The large palm oil exporters Malaysia and Indonesia are preparing for this by reducing their production volume.
Source
HANSA Terminhandel
