Traders and industrial bodies have pointed out the central government of the possible lack of edible oil in the country, as a serious overload in the Kandla port continues to delay the unloading of a major cargo, especially Indonesian oil. The Indian Association of Separate Extractors (SEA) wrote the government, emphasizing the situation and warning that it could disrupt supplies in Western and northern India, where Kandla is a key supply center.
India, the largest palm oil importer in the world, brings approximately 750,000 tonnes every month. Of this, a significant part enters Kandla’s port, which supplies the main refineries across northern and western regions.
Eight Oil Vessels Waiting, More on the Way
Currently, only two vessels carrying 45,000 tonnes are discharged in Kanda, while eight vessels carrying 157,000 tonnes are waiting for beds. Five more ships with 159,000 tonnes of oil are expected to arrive within one week. The sea expressed concern that the waiting times of the vessel could be extended to 15-20 days, which was seriously influenced by the local supplier chain and retail availability of edible oil.
“The overload reached a critical point,” the sea said in a letter of 16 June to the Ministry for Consumer Affairs. They also caused fears that some vessels were pulled out in the middle of the dismissal, which further worsened the delay. Last week, three vessels were moved on board, although they still have 1,000-3,000 tonnes of oil on board.
Why Is This Happening?
Sushil Kumar Singh, chairman of the Deendayal Port Authority (DPA), explained that overload was caused by a sudden increase in the arrival of vessels after reducing import obligations in May. When the merchants rushed to supply during the price of submersion, the harbor was amazed. At present, six edible oil and six chemical vessels with an average delay of 8-10 days await anchorage.
Futures palm oil has also increased again after designing biofuels and adding pressure on Indian traders to quickly secure supplies.
Economic and Consumer Impact
- Demurrage charges are increasing by the hour due to delays.
- Total vegetable oil imports are already down by 9% from last year.
- Retail prices could rise, especially during the upcoming festive season.
- Supply chains for refiners, wholesalers, and retailers are under strain.
Jitendra Srivastava, CEO of Triton Logistics, stressed the need for urgent infrastructure upgrades and digital solutions to improve port flow and cargo handling. He noted that the situation exposes vulnerabilities in India’s maritime logistics and port capacity.
