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Edible Oil Demand Surges After Duty Cut, Prices Fall Ahead of Festive Season
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CNBC TV18•01-10-2026, 15:38
Edible Oil Demand Surges After Duty Cut, Prices Fall Ahead of Festive Season
- •Edible oil demand is picking up following government duty cuts, with goods now moving from ports to distribution channels, according to Emami Agrotech CEO Sudhakar Desai.
- •The duty reduction has led to a decrease in both international and domestic edible oil prices, with the 10% cut on sunflower oil preventing further price increases for soybean and palm oil.
- •Consumer prices for loose oil have seen immediate reductions, while branded oil prices are also falling due to market competition, though the impact on packaged products takes about 15 days.
- •Lower prices are expected to revive edible oil consumption, which had slowed to 1-1.5% growth this year, back to its normal 3-4% growth rate over the next few months.
- •Emami Agrotech is expanding its product portfolio beyond edible oils into categories like chocolate spreads, snacks, atta, maida, sooji, soya nuggets, and spices, leveraging its existing distribution network.
Key Questions Answered
The import duty cut has revived edible oil demand and caused international and domestic prices to fall ahead of the festive season. Loose oil prices dropped immediately, while branded oil prices decreased as sellers compete for market share.
Emami Agrotech is expanding into categories including chocolate spreads, snacks, chips, atta (flour), maida (all-purpose flour), sooji (semolina), soya nuggets, and spices.
The rabi crop oilseed outlook will depend on soil moisture conditions determined by October rainfall, as well as support from increased minimum support prices. However, the final weather phase and monsoon rains remain key uncertainties.
