India's Edible Oil Consumption To Reach 26.5 Million Tonnes As Refiners Eye Double-Digit Revenue Growth
Mumbai, Sep 15: India's edible oil refiners are expected to register a 10-12 per cent revenue growth this financial year despite an import duty cut on crude edible oil, a report said on Thursday. While the duty cut this September would soften domestic realisations in the second half of this fiscal, elevated global edible oil prices, strong first-half performance and improving consumption would…
India is set to see edible oil consumption reach 26.5 million tonnes for the current fiscal year, according to a report by Crisil Ratings. This growth is expected despite a reduction in import duty on crude edible oil. Edible oil refiners are projected to experience revenue growth of 10-12 percent this financial year, comparable to the 14-16 percent growth observed in the previous fiscal year.
This performance is attributed to elevated global edible oil prices, strong first-half results, and improving consumption levels. However, global prices are anticipated to remain high due to supply concerns in key producing regions and sustained biodiesel demand. The government recently decreased import duties on crude edible oils, aiming to alleviate food inflation and enhance affordability.
Despite a reduced duty differential between crude and refined oils, the industry remains supportive of domestic refining. Consumption is projected to strengthen further as lower retail prices boost affordability, particularly during the festive season. This, combined with higher average realisations and healthy volume growth, is expected to drive robust industry revenue growth this fiscal year.
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