Consumers turn to cheaper food items like palm oil

AHMEDABAD | KOLKATA: Consumers with limited budgets have started downtrading from expensive soya and groundnut oil to more affordable palm, cottonseed and sunflower oils that are cheaper by almost Rs 30 per kg.

Sales of private labels and the smaller regional brands that often offer promotions have also picked up. In pulses, yellow peas and urad have become substitutes for tur and chana dal at the dinner table. Leading cooking oil brands say, in June, retail prices rose by Rs 5 per kg due to expensive imports.

In the last one week, benchmark Malaysian palm oil rose by almost $100 per tonne but consumers have been shielded by a 6% appreciation in the rupee during the same period. "High priced soya, mustard and groundnut oil have lost their volumes and cheaper options like palm, cottonseed oil and sunflower oil have seen an increase in sales," said Angshu Mallick, COO, Adani Wilmar.

Adani Wilmar, which markets oil under the brand name Fortune, is the leader in the 'refined oil in consumer packs' (ROCP) segment with a share of about 18%. The edible oil industry saw a dull first quarter owing to peak summer and no major festive season.

"A marginal drop in sales is seasonal. Currently, the change in buying pattern was seen from the lower-income group," said Siraj Chaudhary, chairman, Cargill India.

Source: http://economictimes.feedsportal.com/fy/8av2Fvy0bUM9c2gr/story01.htm

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