Kandla Port Congestion May Cause Edible Oil Shortage, Traders Warn Govt
Kandla, Gujarat – June 20, 2025:
India may soon face an edible oil supply crunch as severe congestion at the Kandla Port is delaying key imports, warn industry traders. Importers and refiners have urged the central government to intervene immediately, fearing potential disruption in the domestic supply chain.
Kandla Port, one of India’s major import hubs for edible oil, is currently overwhelmed with cargo vessels, leading to delays in unloading palm oil, sunflower oil, and soyabean oil shipments. According to the Solvent Extractors’ Association of India (SEA), over 15 vessels are awaiting berthing clearance, with some stranded for over a week.
Rising Import Costs and Festive Season Worries
Industry officials said the delays are not just causing a backlog, but are also increasing demurrage charges and transport costs. “If this continues, prices could spike just before the festive season,” said a senior edible oil importer.
India imports nearly 60% of its edible oil requirement, and Kandla alone handles close to 40% of this volume. Any logistical bottleneck at the port directly affects downstream supply to refineries across north and central India.
Urgent Government Action Requested
Traders are urging the Ministry of Commerce and Shipping to prioritize edible oil vessels and expand unloading infrastructure. Some have also suggested temporary diversion to nearby ports like Mundra, though this comes with its own logistical challenges.
A senior government official confirmed they have received representations from traders and are “monitoring the situation closely.”
Potential Consumer Impact
If the congestion persists, retail prices of edible oils may rise by ₹3–₹5 per litre in the short term. Analysts say this could also inflate food inflation figures in July and August.
The edible oil industry has called for a task force to ensure smooth port operations during critical import months, especially ahead of festivals like Raksha Bandhan and Onam.
FAQs
Q1. Why is there congestion at Kandla Port?
Kandla Port is currently experiencing heavy traffic due to an influx of cargo vessels, especially those carrying edible oils. Limited berthing space and inadequate unloading infrastructure are contributing to the delays.
Q2. How does Kandla Port congestion affect edible oil supply in India?
Kandla handles nearly 40% of India’s edible oil imports. Delays in unloading palm oil, sunflower oil, and soyabean oil at the port disrupt the supply chain, potentially causing shortages and price hikes across the country.
Q3. Which edible oils are being impacted by the delays?
The congestion is affecting key imported edible oils, including palm oil, sunflower oil, and soyabean oil—major components of India’s cooking oil market.
Q4. What actions are traders requesting from the government?
Traders have asked the government to prioritize edible oil shipments for berthing, increase unloading capacity, and consider diverting some vessels to less congested ports like Mundra.
Published on 20 june
Publisher : SMITA
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