Resilience and Recovery: Hemant Bansal's Insights on India's Edible Oil Industry Post-Covid
Introduction
Welcome to Globoil Post, where we share the week's edible oil and agri-trade news highlights. Today, we have an exclusive interview with Hemant Bansal, Vice President (Commercial & Palm Plantation Business) at Ruchi Soya Industries, one of India's largest FMCG companies and major edible oil manufacturers. Hemant Bansal provides an in-depth overview of the edible oil industry and the impact of Covid-19 on the market.
Indian Edible Oil Demand and Supply Post Covid-19
The Indian edible oil demand, though fairly inelastic due to eating habits, has experienced some impact on industrial demand during the economic slowdown. As lockdown restrictions ease, the demand is expected to gradually return to normal. However, the recovery of palm oil demand, which took the most hit, may take longer. The industry is hopeful for a sharp recovery once a Covid-19 vaccine is available. India could benefit from global excess supplies and competitive prices.
Local Oilseeds Markets for the New Season After Covid-19
India is expected to have a normal monsoon this year, and sowing of soybeans has been better compared to last year. Improved availability of agricultural labor, due to migration to native places, is likely to positively impact the area under sowing. A good distribution of rainfall in the coming months would lead to a favorable soybean production. The recently passed ordinance allowing trade of agricultural commodities outside mandi areas is expected to benefit processors and farmers alike, but operational guidelines are yet to be seen.
The Role of Government in the Industry
In an agrarian economy like India, the government plays a crucial role in safeguarding the interests of farmers and those associated with processing farm produce. Minimum support price announcements for agricultural produce are vital in ensuring fair dues for farmers. Supporting processors aligns with the government's "Make In India" initiative, reducing dependence on imported products. Efforts are needed to develop high-yielding oilseed varieties suited to Indian weather conditions.
Suggestions for the Edible Oil & Oilseeds Industry
During these unprecedented times, collective efforts are essential for the industry to navigate the crisis and revive the economy. Hemant Bansal shares a thought from Robert Frost, emphasizing the determination to fulfill promises and overcome challenges. "The woods are lovely, dark, and deep, But I have promises to keep, And miles to go before I sleep, And miles to go before I sleep."
