India's palm oil imports hit roadblock as localized lockdowns intensify

New Delhi — India's palm oil imports in 2021 are set to fall for the second consecutive year as pandemic concerns continue to unfold in the country, forcing refiners to dial back production and keep stocks at a bare minimum level, sources told S&P Global Platts. Chances of a reversal to growth are now all but nil, industry participants said, as a deadlier, second COVID-19 wave runs amok, prompting most states in the country to announce localized lockdowns and night curfews. This impacts palm oil consumption more than other vegetable oils as it is considered an "outside" oil preferred by the HoReCa sector -- hotels, restaurants and catering -- as it is cheaper and more versatile than other edible oils. Soft oils like sunflower oil, mustard oil and soybean oil are used more widely by households in India, and are expected to be unaffected as more people stay at home. Industry analysts, brokers and traders see subdued retail demand in the next few months, which is expected to ...