AWL Boosts Edible Oil Stocks Amid Global Shipping Disruptions

AWL Agri Business has increased its inventory cover for imported edible oil to 40-45 days, up from the usual 30-35 days. This move comes as businesses globally grapple with shipping disruptions stemming from wars in the Middle East and between Russia and Ukraine.

The company's CEO, Shrikant Kanhere, said they have improved inventory holding days due to supply chain volatility becoming a medium-term baseline. India is the world's biggest edible oil importer, meeting nearly two-thirds of its demand through imports from countries including Indonesia, Malaysia, Brazil, Argentina, Russia, and Ukraine.

AWL's strategy involves building up inventories over the past two months as part of their plan to guard against supply snarls. The company can afford to hold larger inventories due to its stronger balance sheet, backed by Wilmar International, one of the world's largest food producers.