AWL Agri Business Stockpiles Edible Oils Amid Global Supply Chain Disruptions
India's largest edible oil refiner, AWL Agri Business, has taken steps to mitigate supply chain disruptions caused by ongoing conflicts in the Middle East and Ukraine. CEO Shrikant Kanhere told Reuters that the company has increased its inventory cover for imported edible oils to 40-45 days from the usual 30-35 days.
This strategy is similar to one adopted during the COVID pandemic, when AWL built up inventories as a precautionary measure against potential supply chain snarls. The move comes amid shipping disruptions and volatility in global oil markets.
India is the world's largest edible oil importer, meeting nearly two-thirds of its demand through imports from countries including Indonesia, Malaysia, Brazil, Argentina, Russia, and Ukraine.
'Keeping in mind all this disruption, because we are living today in a very dynamic world and you don't know what's going to happen tomorrow, we have, to some extent, improved or increased the holding days,' Kanhere said.