Navigating Edible Oil Industry Amidst COVID-19: An Exclusive Interview with Bhavna Shah, MPOC Country Head
Introduction
Hey! Welcome to The Globoil Post, where we share the week's edible oil and agri-trade news highlights.
Today, we have an exclusive interview with Bhavna Shah, Country Head at Malaysian Palm Oil Council (MPOC), who speaks about how the edible oil industry is moving forward in the present critical time. Bhavana Shah, a perfect professional who infuses optimism with her unbridled enthusiasm and charming smile in these tough times, talks about the impact of COVID-19 on palm oil demand, supply chain challenges, and the global scenario.
1. Impact on Palm Oil Demand in the HORECA Segment
Apart from being a cooking medium for a large segment of the population, palm oil is widely used in the HORECA segment, including bakeries, biscuit manufacturing, sweetmeat shops, cafeterias, canteens, and restaurants. During the COVID-related lockdown, the demand in this segment has reduced, not only in India but also globally. While household consumption has partially compensated for the decline, it hasn't fully replaced the HORECA demand. The gradual easing of lockdown measures should bring back HORECA demand, but the pace of normalization remains uncertain. Increased demand for packed consumer goods during the lockdown has also led to an increase in consumer awareness for safe and hygienic food products.
2. Challenges in the Supply Chain for Palm Oils in India
After some initial hiccups, the supply chain of palm oils in India has stabilized. The Indian Government took proactive steps, issuing appropriate ordinances and guidelines to ensure smooth operations despite the challenges posed by COVID-19. In Malaysia, initial challenges were faced due to movement control orders, affecting some plantations. However, measures were taken at both origins and destinations to maintain the supply chain with minimal disruptions. Though some hurdles still exist, the situation is improving. Notably, shipping freights have not seen the expected decline due to high demand for ships as floating storages for crude oils, offsetting the advantage of falling crude oil prices.
3. Localisation vs. Globalisation in Vegetable Oils
The ongoing crisis has raised discussions about localisation versus globalisation. Bhavna Shah believes that while initial responses may incline towards isolation, rolling back globalisation won't be practical in the long run. Striking a right balance between localisation and globalisation is essential. For India, increasing domestic oilseed production is a gradual process, and imports will remain necessary to meet consumption demand. Global partnerships can be forged for mutual benefit during this transitional phase, promoting cooperation and collaboration.
4. Scalability of Local Oil Palm Cultivation
Oil palm cultivation is not a quick fix. It requires strategic production enhancement measures and large investments to make it a profitable venture. Small-scale farmers can be part of the larger oil palm plantations, such as the nucleus and plasma plantations, to improve productivity. Creating a conducive environment for the entry of big capital and supporting sustainable large-scale development will be crucial for successful local oil palm cultivation.
5. Global Challenges for Palm and Environmental Activism
The COVID-19 crisis has raised new environment-related challenges. As the world prioritizes immunity, safety, and hygiene, environmental activists may shift focus to these urgent concerns. The pandemic has exposed the need to distance from habitat destruction and improve environmental management to prevent future outbreaks.
Conclusion
As we navigate the edible oil industry amidst COVID-19, insights from Bhavna Shah offer valuable perspectives on palm oil demand, supply chain resilience, and the way forward. The crisis presents an opportunity for the industry to adapt and thrive by understanding consumer behavior, fostering global partnerships, and addressing environmental concerns. The future holds promise for the Indian vegetable oil sector, and a seamless co-option between the industry and the government can pave the way for a smart balance of farmer, consumer, and industry interests. Let us rise above the current crisis and bounce forward towards a resilient and sustainable edible oil industry.
