Delays in Clearance of Imported Edible Oil Consignments at Kandla Port

20-Jun-2025 05:45 PM

Mumbai. Kandla Port in Gujarat, one of India's busiest maritime hubs, is experiencing significant delays in the clearance of imported edible oil consignments.

A large number of vessels carrying edible oils have arrived or are en route, leading to congestion and bottlenecks at the port.

The region surrounding Kandla hosts several major edible oil refining units that rely on steady imports of crude oil for processing and distribution across the western and northern parts of the country. However, slow clearance procedures are now impacting the supply chain.

According to the Solvent Extractors Association of India (SEA), as of June 16, 2025, only two vessels carrying about 45,000 tonnes of edible oil were being unloaded at Kandla.

Meanwhile, eight more ships with a combined load of 1.57 lakh tonnes were waiting for berths, and an additional five vessels carrying 1.59 lakh tonnes are expected to arrive within a week.

These incoming vessels may face waiting times of 9–10 days, and the overall delay could extend to 15–20 days if port congestion persists.

This backlog is likely to create significant supply disruptions in the domestic market, especially as current stock levels of imported edible oil remain low. The longer ships are delayed, the higher the demurrage charges importers will incur—raising overall import costs.

These increased expenses will erode the potential benefits of the recent 10 percent reduction in customs duty on crude edible oils, announced by the government on May 30, 2025.

If the situation continues, refiners may find it difficult to pass on any cost benefits to consumers, making it harder to reduce retail prices of edible oils.

The SEA has flagged the issue with the Gujarat Food Ministry and urged the Kandla Port Trust to expedite the clearance process to avoid a prolonged disruption in the supply of this essential commodity.