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Informist, Monday, Jun. 23, 2025

 

NEW DELHI – In a meeting with the Indian Vegetable Oil Producers' Association, Kandla Port Chairman Sushil Kumar Singh addressed concerns about vessel congestion and said he would ensure "seamless discharge of operations and uninterrupted edible oil supply," according to a statement issued by the oil producers' association.

 

Singh pointed to ongoing infrastructure enhancements, including the installation of new 14-inch pipelines, and preparations to receive edible oil at two additional berths with dedicated pipelines to ease congestion and improve turnaround times for vessels, according to the statement. The chairman took note of the association's concerns regarding delayed discharge and assured action to minimise post-berthing delays. He also emphasised the importance of coordinated efforts between port officials and importers to ensure timely commencement of discharge operations and completion of on-board formalities.

 

According to the associtation, Singh urged vessel agents to flag potential issues in advance to facilitate smooth operations. He welcomed inputs from all stakeholders, including vessel agents, surveyors, tank terminal operators, and customs brokers, to streamline discharge processes and strengthen operational efficiency at Kandla Port.

 

India imports nearly 750,000 tonnes of palm oil every month, with Kandla Port being a key hub for this trade. The port is currently experiencing significant congestion, with only two vessels carrying 45,000 tonnes unloading, while eight vessels with a combined 157,000 tonnes are waiting in queue, according to media reports. Another five vessels, carrying 159,000 tonnes of palm oil are expected to arrive within the next week. According to the Solvent Extractors' Association of India, the delay could stretch to 15-20 days, severely disrupting the edible oil supply chain.

 

The congestion is attributed to a sudden surge in vessel arrivals following a cut in import duties of edible oils in May. On May 30, the government reduced the basic customs duty on crude palm oil, crude soybean oil, and crude sunflower oil by 10% to 16.5%. Last year, India had raised the duty on both crude and refined cooking oil by 20%. India meets more than 70% of its vegetable oil demand through imports.

 

At present, six edible oil and six chemical vessels are anchored, with an average waiting time of 8-10 days. Rising demurrage charges are increasing import costs, which could ultimately push up retail prices.  End

 

Reported by Pallavi Singhal

Edited by Avishek Dutta

 

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