Edible Oil
1.Intoducation
1.1 Industry Overview
Background and Size of the Indian Edible Oil Industry India is world’s third largest edible oil economy, after China and US. India’s annual consumption is around 10 million tones vis-à-vis China’s 14.5 million tones. However, India’s per capita consumption at 10.2 kgs per annum is considerably lower compared to global standards. India is also a leading producer of oilseeds, contributing 7-8% of world oilseed production. India is estimated to account for around 6% of the world’s production of edible oils. Though it has the largest cultivated area under oilseeds in the world, crop yields tantamount to only 50-60% of the world’s average. India is the fifth largest producer of oilseeds in the world, behind US, China, Brazil, and Argentina. Since 1995, Indian share in world production of oilseeds has been around 8-10%. Edible oil processing consists of three operations: crushing and expelling (separating oil from the solids), solvent extraction (to chemically remove residual oil from the oilcake solids), and oil refining. In many countries, these three separate processing operations are conducted by one vertically integrated plant. In India, however, only a small share of oilseed production undergoes solvent extraction and oil refining. Instead, India’s oilseeds processing sector is made up of the three groups viz Ghanis, solvent extractors and oil refiners engaged separately. Edible oils constitute an important component of Indian households’ expenditure on food. A large Population and steady economic growth are important contributors to India’s increasing consumption and imports. The following table shows the import of edible oil made from November 2006 to September 2007.
Particulars Qty in M.T.
Palmolein 102502
Refined Soybean Oil 9120
Crude Palm Oil 2624632
Sunflower Oil 192795
Soyabean Oil 1225010
Total 4154059
Types of Oils commonly in use in India
India is fortunate in having a wide range of
1.1 Industry Overview
Background and Size of the Indian Edible Oil Industry India is world’s third largest edible oil economy, after China and US. India’s annual consumption is around 10 million tones vis-à-vis China’s 14.5 million tones. However, India’s per capita consumption at 10.2 kgs per annum is considerably lower compared to global standards. India is also a leading producer of oilseeds, contributing 7-8% of world oilseed production. India is estimated to account for around 6% of the world’s production of edible oils. Though it has the largest cultivated area under oilseeds in the world, crop yields tantamount to only 50-60% of the world’s average. India is the fifth largest producer of oilseeds in the world, behind US, China, Brazil, and Argentina. Since 1995, Indian share in world production of oilseeds has been around 8-10%. Edible oil processing consists of three operations: crushing and expelling (separating oil from the solids), solvent extraction (to chemically remove residual oil from the oilcake solids), and oil refining. In many countries, these three separate processing operations are conducted by one vertically integrated plant. In India, however, only a small share of oilseed production undergoes solvent extraction and oil refining. Instead, India’s oilseeds processing sector is made up of the three groups viz Ghanis, solvent extractors and oil refiners engaged separately. Edible oils constitute an important component of Indian households’ expenditure on food. A large Population and steady economic growth are important contributors to India’s increasing consumption and imports. The following table shows the import of edible oil made from November 2006 to September 2007.
Particulars Qty in M.T.
Palmolein 102502
Refined Soybean Oil 9120
Crude Palm Oil 2624632
Sunflower Oil 192795
Soyabean Oil 1225010
Total 4154059
Types of Oils commonly in use in India
India is fortunate in having a wide range of