AHMEDABAD: In the run up to the festive season,

has taken a hit. Estimates by Saurashtra Oil Mill Association (SOMA) suggest that sale of edible oil has gone down by 25% this year, against last year. The situation is particularly worse for premium branded oils such as sunflower and rice bran oil.

“Usually, bulk procurement of oil goes up ahead of Navratri and Diwali. However, this time around, the demand has failed to pick up as expected. There is a slowdown in the market and as the spending power has gone down, the overall demand has taken a hit. The sales have declined impacted in niche and premium segments,” said Samir Shah, president, SOMA.

During the festive season, demand for edible oil is usually up as the demand for packaged food including sweets and snacks goes up.

For branded groundnut oil, the demand significantly went down by 40% against last year, said Shah.

Industry players are also witnessing slowing growth in premium oils against economic ones. “While economy-segment oils such as palmolein and

oils witnessed traction, several premium oils such as sunflower oil, branded soybean oil or even rice bran oils, have witnessed a slower growth since July,” said Ajay Motwani, head, marketing, Adani Wilmar Limited, which markets edible oils under the Fortune Brand.

Oil manufacturers indicate that the situation may improve slightly in the days to come. “The excess rainfall might trigger losses for kharif crop. However, as the dams and groundwater table have been replenished with fresh water, the coming sowing seasons will be better. As a result, the sales may improve,” said Mukesh Nathwani, CMD, Gulab Oil.