Oil Prices, Monsoon Stoke AWL Optimism

The entire industry experienced a volume contraction in the edible oils category

- Suneera Tandon

WL Agri Business Ltd (AWL), which sells edible oils, flour and food, expects a significant rise in demand, particularly ahead of the festive season, spurred by a recent cooling in edible oil prices and strong monsoon showers that are key to the rural economy.

This price decline is a direct result of the government's decision to cut duties on crude edible oil imports. Angshu Mallick, managing director and chief executive officer (CEO), AWL Agri Business, said in an interview with Mint that the company has fully passed on these price reductions on edible oils to consumers, and is expecting a pickup in demand July onwards.

In April-June, the maker of Fortune edible oil posted a 5% year-on-year decline in overall volumes, even as the company posted a 21% rise in revenue, reaching 17,059 crore. The volume dip in the June quarter was largely attributed to edible oil and food.