Kandla Port, one of India’s busiest ports for edible oil imports, is facing severe congestion. Traders have warned that the situation could trigger a shortage of edible oil across local markets. Several vessels carrying Indonesian crude palm oil are stuck at the port, unable to offload cargo due to limited berth availability.
India is the world’s largest importer of palm oil. The country imports around 750,000 tonnes of palm oil each month. Kandla, in Gujarat, plays a vital role by supplying edible oil to major refineries in western and northern India.
Industry Body Flags Concerns to Government
The Solvent Extractors’ Association of India (SEA), the key industry body for edible oil stakeholders, has raised serious concerns with the central government. In a letter, the SEA revealed that only two vessels — with a combined load of 45,000 tonnes — are currently being unloaded. Meanwhile, eight more ships carrying 157,000 tonnes of crude palm oil are anchored, awaiting a berth.
Worryingly, five additional ships carrying a total of 159,000 tonnes are also en route to Kandla. If congestion isn’t eased soon, delays could cascade, affecting delivery schedules for weeks to come.
SEA’s letter said, “The unprecedented congestion could severely affect supply to major edible oil refineries. If not resolved quickly, this may disrupt availability of edible oil in many states and push up prices.”
Impact on Retail Supply and Prices
The port congestion has already triggered concern among refiners. Many operate on tight inventory cycles and depend on steady imports for processing and packaging. Any delay at the port stalls production and stretches delivery timelines to distributors and retailers.
Local traders fear that shortages may first affect bulk buyers — bakeries, restaurants, and food manufacturers. Eventually, the retail segment could face price hikes and limited availability, especially in northern states.
Retailers in cities like Delhi, Jaipur, and Chandigarh rely heavily on palm oil sourced through Kandla. An extended delay could lead to visible shortages in low-cost oil brands, affecting household budgets.
Government Urged to Step In
SEA has called upon the Union Ministry of Commerce and the Ministry of Ports, Shipping, and Waterways to intervene. Further, it has suggested opening additional berths, prioritising edible oil vessels, and expediting customs clearance for docked ships.
The association also recommended the temporary diversion of some ships to other ports such as Mundra or Mumbai to ease the burden on Kandla.
An SEA official said, “Time is critical. If proactive measures aren’t taken in the next few days, edible oil supply chains will be disrupted just as festive demand begins to build.”
Why Kandla Matters
Kandla Port handles over 60% of India’s crude palm oil imports. Due to its proximity to major consumption centres and established pipeline infrastructure, it remains the preferred choice for most importers and refiners.
Any bottleneck at this port causes ripple effects across the country. Compared to other ports, Kandla is more cost-effective and connected to the national distribution network, making congestion here a national concern.
The Bigger Picture
The incident also raises questions about India’s port infrastructure and its ability to scale up with growing demand. As India’s edible oil consumption rises, reliance on key ports like Kandla must be matched with increased capacity and streamlined logistics.
What to Do?
As India faces a potential edible oil shortage due to Kandla Port congestion, swift action from authorities is critical. Also, the government must intervene to ease port traffic, safeguard supply chains, and ensure that price-sensitive consumers are not affected.
Stay informed about edible oil supply updates and port logistics news. Visit the SEA India website for regular bulletins.