Now Reading: AWL Agri Business raises imported oil stocks amid shipping disruption
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AWL Agri Business raises imported oil stocks amid shipping disruption
AWL Agri Business raises imported oil stocks amid shipping disruption
Chief executive Shrikant Kanhere told Reuters, in remarks carried by The Economic Times, that AWL Agri Business has pushed its imported edible oil inventory up to roughly 40 to 45 days' worth…
Chief executive Shrikant Kanhere told Reuters, in remarks carried by The Economic Times, that AWL Agri Business has pushed its imported edible oil inventory up to roughly 40 to 45 days' worth of demand, well above the usual 30 to 35 days. The stated purpose behind the buildup at the Fortune cooking oil maker is insulation from supply disruptions stemming from conflict in the Middle East and the Russia-Ukraine war. Nearly two-thirds of India's edible oil comes from abroad, drawing on Indonesia, Malaysia, Brazil, Argentina, Russia and Ukraine among others. Bigger players, AWL and Patanjali Foods included, are similarly topping up ahead of the festive season, a move that curbs the odds of running short even as it locks up working capital. Kanhere said the hit to margins so far has stayed limited.
Indian Opinion Analysis
Kanhere's comments frame the stock build as a hedge against possible disruption rather than a response to a shortage that has already materialised, and the account gives no figure for how much of AWL's added inventory is committed versus still being sourced. Smaller refiners are likely to feel the cash cost of matching that kind of buildup more than AWL or Patanjali Foods, though this account does not put a number on that gap. The stated aim, covering the festive season, ties the buildup to a period still weeks away rather than an immediate supply gap. Whether AWL's margin impact stays limited once festive-season demand peaks is the figure this account leaves to be tested.
Source: economictimes.indiatimes.com
This brief was synthesised by AI from the source linked above.
