China has been a key importer of groundnut oil from India, but recent reports of adulteration have led to a decrease in demand for the product. This news has come as a blow to Indian exporters who rely on China as a major market for their groundnut oil.
The issue of adulteration in groundnut oil has been a long-standing concern in the food industry, and several efforts have been made to address the problem. However, the recent incident involving the adulteration of food-grade groundnut oil has raised concerns once again. The presence of non-food grade oils in the food-grade oil has led to health concerns, prompting China to take strict measures and halt imports of the product.
Apart from the issue of adulteration, the domestic demand for groundnut oil in India has also been impacted. Groundnut oil is known to have a high premium over competing oils, making it an expensive option for consumers. As a result, the demand for the product has been lackluster, and this, combined with the decline in exports to China, is expected to affect the overall trade of groundnut oil.
Groundnut oil is a significant export commodity for India, and any decrease in demand can have a significant impact on the country’s economy. Indian exporters are now exploring alternative markets to compensate for the decline in demand from China.
In conclusion, the recent decline in demand for groundnut oil from China due to adulteration concerns and the already subdued domestic demand has created a challenging situation for Indian exporters. However, with a growing awareness of the problem of adulteration, efforts are being made to address the issue and regain the trust of customers.
( Source : Agriwatch )