India: Consumer demand drop in lockdown could cut palm oil prices

New Delhi: With consumer demand dropping, particularly as the restaurant sector has taken a hit in the lockdowns induced by the second Covid-19 wave, the prices of palm oil may finally witness a decline in India. Palm oil is vital to a number of sectors in the country as its usage is diverse, from cooking oil, pizza dough, soap, shampoo, lipstick, chocolate and even biodiesel. Palm oil prices hit a record high in the first half of this year but edible oil traders say they are witnessing a decline in demand, which could hit prices and imports. Its imports were expected to stand at an average of 8,50,000 metric tonnes a month in May and June but now industry officials estimate imports could come down to around 6,50,000 metric tonnes per month. “The price of palm oil might decrease for the next few months until the country completely recovers from Covid and lockdown. This is because major consumption of palm oil is in the commercial sector in food or other products, demands of which ...