With Indonesia scrapping its export levy for all palm oil products until August 31, oil manufacturers in India will find it easier to pass on the benefits of softening global rates to end consumers. The correction is likely to hit retail shelves by early next month while the development comes nearer on the heels of the government requesting entities to ensure reduction in maximum retail price of edible oils by Rs 15 with an immediate effect.
The MD & CEO at Adani Wilmar, Angshu Mallick said, “Any shipment that has started before July 15 is most possibly going to reach Indian shores by July 25. So, there may not be any immediate impact this month. We may also view an increase in domestic crude palm oil prices in Indonesia by $50-100. The development means, prices are softening and all the benefits are being passed on to Indian consumers.”
The President of Indian Vegetable Oil Producers Association and CEO at Emami Agrotech said that Indian prices will reflect global trends, although the effect of easing of export restrictions on palm oil has been present in the market for some time. With Indian consumers gaining all the benefits, they expect a similar trend in soya oil as well.