Merchants have warned of edible oil shortages in native markets and provide disruptions as a number of vessels — primarily carrying Indonesian crude palm oil — stay stranded at Kandla Port, awaiting cargo unloading amid “heavy congestion”.
India is the world’s largest importer of palm oil, with month-to-month imports totalling 750,000 tonnes. Kandla is a key port that provides main refineries catering to western and northern India.
In letters to the federal government, the Solvent Extractors’ Affiliation of India (SEA), representing key stakeholders within the edible oil trade, has mentioned that solely two vessels with a mixed capability of 45,000 tonnes are at present discharging cargo, whereas as many as eight vessels carrying 157,000 tonnes — are ready for berths. The congestion is especially regarding as 5 extra vessels, with a complete capability of 159,000 tonnes, are anticipated to reach throughout the subsequent week, it has mentioned.
When contacted, Sushil Kumar Singh, Chairman of Deendayal Port Authority (DPA), Kandla, advised The Indian Categorical: “The congestion is the results of a sudden surge in edible oil vessel arrivals after import duties had been diminished in Might. At current, six edible oil and 6 chemical vessels are ready at anchorage. The typical ready time is 8-10 days. We’ve tightened operational protocols and are working to deal with the problem as effectively as potential.”
This comes amid sharp fluctuations in palm oil costs. Merchants sometimes enhance purchases when costs drop. Final month, India’s palm oil imports hit a six-month excessive, pushed by low home inventories and a beneficial value hole in comparison with soybean and sunflower oils, Reuters reported. Nonetheless, palm oil futures have since surged following the US’s proposal to boost biofuel mixing mandates.
The SEA has warned that the ready interval might enhance to fifteen–20 days, based mostly on the anticipated vessel line-up. Such extended delays “might result in a shortage of edible oil within the native market, impacting the provision chain,” it has mentioned.
“The state of affairs has additional deteriorated, as Kandla Port has resorted to pulling out edible oil vessels mid-discharge. Prior to now week alone, three such vessels — every with simply 1,000 to three,000 tonnes of cargo remaining — have been withdrawn or shifted from berths,” the SEA mentioned in a letter to the Ministry of Shopper Affairs, Meals and Public Distribution on June 16, following up on an earlier communication despatched on June 11.
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The congestion has wide-reaching implications because the prolonged ready durations are incurring important demurrage prices, thereby rising total import bills and pushing up edible oil costs for shoppers.
Jitendra Srivastava, CEO of Triton Logistics & Maritime, mentioned the congestion of shipments at Kandla Port reinforces the necessity to improve India’s port infrastructure and optimise maritime logistics on the earliest.
“With vessel wait instances reaching as much as 48 hours, the ripple results are felt throughout your entire provide chain, from exporters to shoppers. As commerce volumes proceed to escalate, there’s a urgent want for ports throughout the nation to include good applied sciences, automate, and enhance berthing and cargo dealing with capabilities to maintain future demand,” Srivastava mentioned.
“Principal options embrace improved vessel site visitors management, enhanced inter-agency coordination, and funding in technological aids akin to predictive analytics to allow more practical port circulation administration. Upgrading berths, modernising the container terminal, and growing warehousing area are equally vital to keep away from bottlenecks and obtain sooner turnaround instances,” Srivastava mentioned.
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“As per port norms, any vessel pulled out for any motive can solely be re-berthed after three days – which, in apply, can take 3-5 days — together with extra port expenses for de-berthing, re-berthing, pilotage and different marine providers. In the meantime, the vessel accrues demurrage by the hour and as soon as underneath demurrage, it continues to incur expenses.
Sarcastically, this apply does little to ease the congestion,” SEA mentioned.
Whole oil imports have fallen over the previous seven months. Between November 2024 and Might 2025 — the primary seven months of the 2024–25 oil yr — vegetable oil imports stood at 7,884,768 tonnes, down 9 per cent from 8,678,447 tonnes throughout the identical interval final yr, SEA famous.