Cooling edible oil prices, good monsoon stoke AWL’s optimism for strong demand
New DELHI: AWL AGRİ BUSiness LTD (AWL), which sells flour and food, is waiting for a significant increase in demand from the strong monsoon shower, which is the key to cooling and rural economy, especially before the festival season.
This price decrease is a direct result of the government’s decision to reduce tasks related to coarse -edible oil imports. AWL Agri Business, General Manager and Chairman of the Executive Board (CEO) Angshu Mallick said in an interview. Mint The company is waiting for consumers to pass these price reductions in edible oils and a turntable in demand from July.
In the April-June quarter, Fortune Eleble Oil manufacturer increased by 21% of the company, although the company recorded a decrease of 5% annually in total volumes. La17,059 Crore. The volume decrease in the June quarter was largely attached to edible oils and foods.
Of course, all industry experienced a volume contraction in the category of edible oils.
Mallick stressed that the government’s decision to interrupt import tasks on coarse -edible oils on May 31, causing delayed purchases as they wait for the price stability of the buyers, as they damage general consumption. “Due to the import tax on May 31, the whole trade was waiting and they wanted to understand the impact of the task deduction and the prices. Thus, everyone delayed their purchases. As a result, we had an effect on this.”
In addition, out-of-home consumption and B2B segments-purchased by other packaged food companies-removed from the work and reflect a wider slowdown in consumer demand for categories such as frying chips and snacks.
On May 31, the basic customs duties on raw soybean oil, raw palm oil and raw sunflower oil were halved up to 10%. This change came after more than eight months higher import taxes on these oils. Effective import tax for these three products, which includes basic customs duties and additional fees, is of 16.5%from the previous 27.5%.
“The price (edible oil) fell between 1 April and now almost 6 to 7%. Palm oil decreased by 14%. Palm (oil) was always expensive and therefore it was suppressed out of home.
During the quarter, the performance of the food segment was significantly affected by the consolidation of the rice business, which has only a few keys that contributed to the lower volumes of the company’s geographical footprint in this category. The company also sells pulses and besan (gram flour), soy nugchhs, sugar and poha (rice stamps).
The income from the food and FMCG segment fell by 8% annually in the quarter La1,414 crore due to multiple winds. However, the G2G rice work, except for rice, income from the segment has increased by 4% annually.
G2G usually refers to rice, which is traded within the scope of State-Housing Agreements to meet food safety requirements. G2G work, which includes rice sales to export agencies appointed by the government, was produced LaIn the June quarter earnings, the company was only stopped in 25 financial years, but after the third quarter, it was largely stopped.
In the wheat flour category, volumes are affected by soft consumer demand, higher brand premiums and increasing local competition. With other planned initiatives, the company predicts that volume growth will continue to overcome industry rates as stated in the declaration of earnings.
When we look forward, Mallick showed a rebound in the next festival season.
“Festivals in the corner – in the beginning of this year. Together with a good monsoon. In general, urban and rural demand will be very solid until December. Prices are stable and these prices are very affordable,” he added.
