While FMCG companies might have had a stressful weekend, edible oil companies are having a field day today.
On Friday, Indonesia, world’s top palm oil producer, announced an export ban on palm oil with effect from 28 April. This is expected to disrupt supplies and drive up prices, impacting packaged consumer goods firms and consumers alike.
Malaysia, the second biggest palm oil exporter, is facing a production shortfall due to a pandemic-induced labour shortage, and is unlikely to step up and plug the gap.
But this is reason for great cheer for the edible oil makers in India; for them things just got great from better.
Gokul Agro hit the 5% UC within moments of opening at Rs.101.95 and so did Adani Wilmar at Rs.764.60; both hitting new highs too. Godrej Agrovet rose 11% to Rs.550; Poona Dal hit the 20% at Rs.66.70. Kriti Nutrients also hit the 20% UC and a new high at Rs.71.55.