Kandla Port Congestion Threatens Edible Oil Supply, Traders Urge Swift Government Action

A growing backlog at Gujarat’s Kandla Port has raised alarms among edible oil traders, who warn of potential supply shortages in western and northern India. The congestion, triggered by a surge in crude palm oil imports following a recent duty cut, has left multiple vessels stranded and unloading operations severely delayed.

According to the Solvent Extractors’ Association of India (SEA), only two ships carrying around 45,000 tonnes of palm oil are currently being unloaded at the port. Meanwhile, eight more vessels, holding nearly 157,000 tonnes, remain anchored and waiting for berthing. An additional five ships carrying approximately 159,000 tonnes are expected to arrive in the coming days, potentially worsening the congestion.

Data from the Deendayal Port Authority shows that six edible oil tankers and six chemical vessels are currently anchored offshore. Average wait times now range from 8 to 10 days, with SEA officials warning this could extend to 15–20 days if corrective measures are not taken swiftly.

Further compounding the issue, some ships have been forced to vacate berths before completing unloading, leaving behind thousands of tonnes of oil still on board. These repeated delays are resulting in mounting demurrage charges and operational costs, which traders fear could be passed on to consumers in the form of higher edible oil prices.

Industry experts, including logistics CEO Jitendra Srivastava, are calling for urgent infrastructure upgrades. Recommendations include better berth management, automated traffic scheduling, improved warehousing, and predictive analytics for port operations.

India, which imports about 750,000 tonnes of palm oil monthly, relies heavily on efficient port logistics to maintain food supply stability. The SEA has also reported a 9% decline in total edible oil imports year-on-year. Traders are urging government intervention to ease the backlog and protect market stability.