Money Market Guru — As per latest update from United States Department of Agriculture (USDA), Indias Total edible oil production in the forecast year will rise by 6.4-percent to 7.6 MMT due to an increase in the crush, excepting for sunflower oil, which is expected to sink to a decadal low.
This forecast includes 2.4 MMT of rapeseed and mustard oil, 1.7 MMT each of soybean oil, 1.2 MMT of cottonseed oil, 1.4 MMT of peanut oil, 570,000 MT of coconut oil, 240,000 MT of palm oil, and just 85,000 MT of sunflower oil.
Vegetable oil consumption during the forecast year will rise by six percent to 24.4 MMT, driven by Indias growing population, rising disposable incomes, and strong demand from household and institutional buyers. Bulk buyers find a variety of end users across the food production sector (margarines, biscuits, bread, breakfast cereals, instant noodles, chocolates, and ice creams) and non-food sector (shampoos, lipsticks, candles, and detergents). Both sectors are seeing robust sales due to the fast growing FMCG sector in India. The slowed buying by bulk users and end consumers, particularly during first two quarters of MY 2016/17, is likely to rebound. — Money Market Guru