Pandemic tears through India’s agriculture commodity demand; exports show resilience

Published 2021년 4월 27일

Tridge summary

India's agriculture industry is facing challenges due to the pandemic-induced localized lockdowns and surging cases, leading to stagnated market demand and potential disruptions in supply operations. Despite the exemptions, many markets are closed, impacting domestic demand for commodities like palm oil, grains, and sugar. However, agricultural exports are supporting prices and staying steady. The demand for palm oil, a staple used by the HORECA sector, may decrease as restrictions affect the sector. Wheat and rice exports have surged, and the harvest for corn is ongoing without disruptions. Domestic sugar demand has declined due to the absence of bulk buyers and government restrictions on large gatherings, but export demand has remained steady, keeping prices stable. Overall, while exports remain largely unaffected, stricter lockdowns could potentially cause more disruptions.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

India’s agriculture industry is in a wait-and-watch mode amid the worsening pandemic situation, as localized lockdowns have stagnated market demand, while any subsequent stricter restrictions in the coming days are expected to slow down trading activity and disrupt supply operations. Even though agriculture and allied activities are exempted from government restrictions so far, several markets across India remain closed as cases continue to skyrocket. As a result, India’s domestic demand for palm oil, grains, as well as sugar is absent from the markets, sources told S&P Global Platts. India is the world’s largest buyer of palm oil, and a major consumer of grains and sugar. Meanwhile, agricultural exports for commodities like sugar are steady, which are supporting prices as of now, market participants said. Palm oil demand may take a hit India’s appetite for palm oil may get impacted as nearly 60% of country’s consumption comes from the HORECA (Hotels, Restaurants, Catering) ...

Source: Hellenic Shipping News