While India produces major oil seeds but the demand has been rising considerably over the years. Unbranded players dominate the edible oils market even as branded players are trying to tap into high consumption areas.
It is not mere coincidence that the Rs 2,500 crore Emami Group is all set to launch its brand of edible oils in the country.
The group is eyeing India’s 14 million tonne per annum edible oils market in a big way. The company will launch varied packs of oils of Sunflower, Mustard, Soybean, Palmolein, etc. Unbranded players dominate the market and Emami wants to make a dent into it. The company is hoping to grab a 10 percent market pie by 2015.India is one of the largest oilseed producers in the world. In 2007-08, the country produced 28.21 million tonnes of nine cultivated oilseeds. India produces six to seven percent of the world’s oilseeds. In 2006-07, 7.3 million tonnes of oilmeals, oilseeds and minor oils were exported, as against 5.06 million tonnes in 2005-06. This was exports worth Rs 7,997 crore, as against Rs 5,514 crore.
| Nine Major Oilseeds |
| - Groundnut       - Mustard         - Sesame       - Safflower       - Linseed |
| - Niger seed       - Castor seed      - Soybean       - Sunflower |
According to the Department of Food and Public Distribution System (PDS), Groundnut, Mustard/Rapeseed, Sesame, Safflower, Linseed, and Niger seed/Castor are the major traditionally cultivated oilseeds. It says Soybean and Sunflower have also assumed importance in recent years. Among plantation crops, Coconut is most important. Efforts are being made to grow oil palm in Andhra Pradesh, Karnataka, Tamil Nadu in addition to Kerala and Andaman & Nicobar Islands. Among the non-conventional oils, Rice bran oil and Cottonseed oil are the most important. In addition, oilseeds of tree and forest origin, which grow mostly in tribal inhabited areas, are also a significant source of oils, it says.
| Oilseeds production and consumption | |||
| Oil year (Nov-Oct.) | Production of Oilseeds | Net availability of edible oils from all domestic sources | Consumption of Edible Oils (from domestic and import sources) |
| 2000-2001 | 184.40 | 54.99 | 96.76 |
| 2001-2002 | 206.63 | 61.46 | 104.68 |
| 2002-2003 | 148.39 | 46.64 | 90.29 |
| 2003-2004 | 251.86 | 71.40 | 124.30 |
| 2004-2005 | 243.54 | 72.47 | 117.89 |
| 2005-2006 | 279.79 | 83.16 | 126.04 |
| 2006-2007 | 242.89 | 73.70 | 115.87 |
| 2007-2008 | 297.55 | 86.54 | 142.62 |
| Source: Ministry of Agriculture | |||
Growth drivers
India is among the largest vegetable oil importers in the world. The demand for edible oil has been going up considerably for several years now, around Seven percent annually. The demand is picking up fast in small towns and villages. Rural consumers that now have deeper pockets are spending on this commodity. Government’s schemes such as the National Rural Employment Guarantee Act (NREGA) have handed more money in the hands of those living in rural areas.
According to the estimates, by October 2010, vegetable oil imports by India could rise to 9.5 million tonnes, which would be around nine percent up over the previous year. Indonesia and Malaysia sell Palm oils while Soy oil is being sold by Brazil and Argentina.
| Import of Edible Oils (in MT) | |||||||
| Nov. ’09 to Jan.’10 | |||||||
| Month | 2009-10 | 2008-09 | % | ||||
| Edible | Non-edible | Total | Edible | Non-edible | Total | Change | |
| Nov.'09 | 712,677 | 41,289 | 753,966 | 519,032 | 36,310 | 555,342 | + 36% |
| Dec.’09 | 761,835 | 25,588 | 787,423 | 719,125 | 26,438 | 745,563 | + 6% |
| Jan.’10 | 827,182 | 45,213 | 872,395 | 856,690 | 31,412 | 888,102 | - 2% |
| Total | 2,301,694 | 112,090 | 2,413,784 | 2,094,847 | 94,160 | 2,189,007 | + 10% |
| Source: Solvents Extractors Association of India | |||||||
According to the figures by the Solvents Extractors Association of India, the import of vegetable oils during January 2010 was 872,395 tonnes, compared to 888,102 tonnes in January, 2010, consisting of 827,182 tonnes of edible oils and 45,213 tonnes of non-edible oils. The overall import of vegetable oils during November 2009 to January 2010 is reported at 2,413,784 tonnes compared to 2,189,007 tonnes i.e. up by 10 percent.
The Union government set up a technology mission to boost the oilseeds sector in 1986. This has led to an increase in the area under cultivation, with increase in production to 24.8 million tonnes in 1998-1999 from 11.3 million tonnes in 1986-87. The production of nine major oilseeds is estimated to be about 28.21 million tonnes during 2007-08, according to the estimates of Ministry of Agriculture. The government’s liberalization policy has made the sector competitive and has seen several Indian and foreign players in the market.
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As you mentioned in the article Oil seeds business is having a grate future. Castor oil- mostly a non edible oil- is also has a bright future. Castor oil is having multiple application.It can be used in Medicinal purpose, cosmetic purpose, Textile chemicals,paper,Plastics &rubber,Perfumeries,Electronics & communications, Pharmaceuticals,Paints,Inks & additives,Lubricants, and other products like sealant,Drying Oils, Metallic Salts etc various sectors. Like Castor oil , Castor cake is also having multiple use. Both Castor oil and Cake are having good export potentiality also.In the 2008-09 , india exported 357261 MT of castor oil of value of Rs.2128.72 Cr. In the same 203915 MTs of Castor oil meal exported for various counties.
As the usage of Castor oil is increasing in various other sectors, cultivation of Castor seeds and industries of Castor seed and oil processing will have good future.
As a consultant recently we prepared A project report on Castor Oil manufacturing Industry (expeller Process) of 25 Tons per day processing. The project cost at 100% capacity utilization Rs.2.50 -3.00 Cr. Other Castor oil based industry is Dehydrated Castor oil ( 1 Ton per day capacity project cost will be about Rs.2.50cr). we can prepare project profiles and project reports. we can also assist in setting up the industries. Those who are having interest can contact us on Mobile:09866119816 or e-mail: mcs_msr@yahoo.co.in.
Thanking you,
Mynampati Sreenivasa Rao
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Mobile:09866119816
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