The Indian edible oil market is the world’s fourth-largest after the
USA, China and Brazil. A growing population, increasing rate of consumption and increasing per capita income are accelerating the demand for edible oil in India. This paper analyses the trend in edible oil consumption and the prospects for the Indian edible oil market in the coming years. India is a leading player in edible oils, being the world’s largest importer (ahead of the EU and China) and the world’s third-largest consumer
(after China and the EU). Each year, India consumes over 10 million tonnes of edible oils. Edible oils have a high penetration of 90% in India. However, per capita consumption of edible oils is around 11 kg per year. This is considerably lower than in most developed countries.
Palm oil (mainly imported) and soya bean oil account for almost half of total edible oil consumption in India, followed by mustard and groundnut oil. In India, most vegetable oil is purchased by household or industrial buyers
(food processors, restaurants and hotels) for frying or baking needs and is sold as loose oil or vanaspati (partially hydrogenated vegetable oil). Only a small percentage of edible oils are sold in branded form at the retail level.
Types of oils commonly in use in India
In India consumer oil preferences vary from region to region because preference is based on local cultivations.
Region Preferred oil
North Mustard, rape
East Mustard, rape
West Groundnut
South Groundnut, coconut
India is fortunate in having a wide range of oilseed crops grown in its different agro-climatic zones. Groundnut, mustard/rapeseed, sesame, safflower, linseed, Niger seed/castor are the major traditionally cultivated oilseeds. Soya bean and sunflower oils have also assumed importance in recent years. Coconut is the most im-portant amongst the plantation crops. Among the non-conventional oils, rice bran oil and cottonseed