Diwali demand for cooking oil was good. In most of the states demand went up by 10% than the normal monthly consumption. The main interesting thing to observe is that drinking more tea in out-of-the-home format has been picking up and is close to previous year’s level.
Cooking oil and tea noticed a rise in demand throughout the festive season regardless of a cautious Diwali within the midst of pandemic and excessive costs, stated industry executives.
While cooking oil demand grew 10% in comparison with that in October, as Indians consumed extra samosas, aloo tikkis and pakoras with cups of teas to have a good time Diwali at residence with their close to and pricey ones, packet tea additionally surpassed final 12 months’s Diwali gross sales. This occurred regardless of a 30% enhance within the costs of cooking oils from a 12 months in the past and a 25% enhance in tea costs.
The demand for each the commodities additionally revived in motels and eating places, though the requirement for the catering business continued to be low due to the restrictions as a result of ongoing pandemic.
The Indian Vegetable Oil Producers’ Association’s president, Mr Sudhakar Desai said that, “Diwali demand for cooking oil was good. In most of the states demand went up by 10% than the normal monthly consumption.”
Mr. Desai who is also the CEO of Emami Agrotech, which sells edible oils under the brand name of Healthy & Tasty, stated that “There have been no supply chain issues during the season.”
Mr. Angshu Mallick, the deputy chief executive officer, Adani Wilmar, mentioned that dealers, retailers and distributors had not created any warehouse stock this 12 months for Diwali. “They had kept a week’s inventory only. The consumption during Diwali could have gone up further up if the tourists have visited the country. Dewali has always been witnessing a lot of tourists visiting northern states like Rajasthan, Himachal Pradesh and other places to enjoy eating Indian food.”
Mr. Desai stated that the demand from motels, restaurants and eating places have additionally noticed a revival. “This is reflected in the increased volumes of imported palm oil that is majorly used by the hotels, restaurants and even local eating places. Due to covid-19 lockdown for months, imports had gone down to 4 lakh tonnes per month. In October, imports shot up almost double at about 7.85 lakh tonnes, which indicates that nearly 85-90% of the hotel, restaurant and cafe demand has been met. However, home dining is yet to pick up,” he stated.
“Since the prices are signaling all-time high, we have to be cross our finger, wait and see if there any chances in dropping down the consumption level in the next few months.”
Mr. Mallick stated that the central government will take some necessary steps to bring down import duty on edible oils which can end in a reasonable correction in prices.
Mr. Viren Shah, the chairman of Federation of All India Tea Traders Association, the apex body of packet tea players, mentioned, “Diwali sales have been great. We have crossed previous year’s Diwali numbers. The final figure is expected to come out shortly. The main interesting thing to observe is that drinking more tea in out-of-the-home format has been picking up and is close to previous year’s level.”
India’s home consumption is about 1,100 million kg per annum, out of which about 800 million kg is consumed at home whereas the remaining is consumed in out-of-the-home format.