AWL Agri Business Eyes Volume Recovery As Duty Cuts And Palm Oil Stabilisation Boost Prospects

Image Source : Agro & Food Processing

AWL Agri Business Ltd is poised for a rebound in edible oil volumes, driven by two key tailwinds: the government’s recent reduction in import duties on crude edible oils and the global stabilisation of palm oil prices. These developments are expected to enhance domestic refining margins and support volume growth in the coming quarters.

Key Policy And Market Shifts

The Centre slashed basic customs duty on crude palm, soybean, and sunflower oils from 20 percent to 10 percent, lowering the effective duty from 27.5 percent to 16.5 percent
The move creates a 19.25 percent differential between crude and refined oil imports, incentivising domestic processing and reducing reliance on refined imports
AWL, a major branded edible oil player, stands to benefit from lower input costs and improved pricing competitiveness

Palm Oil Price Normalisation

Global palm oil prices are expected to remain stable through 2025, supported by rising demand from India and China and biofuel mandates in Indonesia and the US
BMI forecasts palm oil to trade between MYR 3,800–4,000 per tonne, with production surpluses moderating price spikes
Palm oil, previously a drag on AWL’s volumes, may now support recovery as affordability improves

Strategic Outlook

AWL reported a 21 percent revenue growth in Q1 FY26 despite a 4 percent volume decline, largely due to weak palm oil sales. With duty cuts and price stability in play, the company anticipates stronger volume traction, especially in mustard and blended oils, and improved margins across its refining operations.

Sources: CNBC TV18, Business Standard, Goodreturns, NDTV Profit, The Hindu BusinessLine, SEA India.