Kandla port congestion may cause edible oil shortage: Traders to Govt

By | June 20, 2025

Logistical gridlock at Gujarat’s Kandla Port is threatening to disrupt India’s cooking oil supply. Industry groups are sounding the alarm over delayed imports of palm, sunflower, and soybean oils. Traders are pressing the government for swift intervention to prevent a supply shortage.

Import Delays Spark Cooking Oil Supply Concerns

Kandla, one of India’s largest oil-handling ports, is facing significant congestion, with vessels waiting days to offload cargo. According to port officials and industry insiders:

  • Over 200,000 tonnes of imported oil are delayed
  • Warehouses are reaching storage capacity
  • Ships are being held offshore for extended periods

Kandla Port Jam May Affect Domestic Oil Market

India imports 60% of its cooking oil needs, much of it through Kandla. Prolonged disruptions can lead to:

  • Retail shortages of key oil products
  • Price hikes due to limited stock
  • Downstream delays in supply chain distribution

This has caused growing anxiety among traders and retailers, especially during the high-demand monsoon season.

Traders Call for Government Action on Oil Imports

Industry leaders, including the Solvent Extractors’ Association of India (SEA), have submitted an appeal to the Centre. They’ve suggested steps like:

  • Redirecting vessels to ports like Mundra
  • Expediting customs clearance
  • Providing priority berthing to edible oil tankers

“The backlog could affect national availability and cause price fluctuations. We need emergency steps,” said an SEA representative.

Market Impact of the Cooking Oil Delay

If the delays persist, the public could soon feel the impact:

  • Cooking oil prices may rise in local markets
  • Small retailers could face inventory gaps
  • Consumer buying behavior might shift towards hoarding

Supermarkets in major cities have already reported slowed restocking cycles.

Conclusion

Kandla Port’s congestion poses a risk not only to trade logistics but also to the stability of India’s edible oil market. To avoid panic buying and inflation, the government must act promptly and decisively.