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Edible Oil Market Analysis India

This document discusses India's edible oils sector, including its current state and future demand drivers. It notes that India has over 15,000 oil mills and hundreds of other processing facilities. Currently, India accounts for 7% of global oilseed output and consumption, but meets only around 60% of its domestic edible oil demand through domestic production, relying on imports for the rest. The document projects that India's edible oil demand will grow substantially in the coming years, driven by factors like population growth and increasing incomes.

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Bharath Ramaiah
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189 views11 pages

Edible Oil Market Analysis India

This document discusses India's edible oils sector, including its current state and future demand drivers. It notes that India has over 15,000 oil mills and hundreds of other processing facilities. Currently, India accounts for 7% of global oilseed output and consumption, but meets only around 60% of its domestic edible oil demand through domestic production, relying on imports for the rest. The document projects that India's edible oil demand will grow substantially in the coming years, driven by factors like population growth and increasing incomes.

Uploaded by

Bharath Ramaiah
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

E T

RK
A IC
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: M M
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P R G
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BACKGROUND

• Edible oils constitute an important component of Indian household.

• According to NSS 60th Round (January-June 2004), MPCE of edible


oil in food was 8.2% in rural, and 8.2% in urban.

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• According to the Second Advance Estimates released by the Ministry of
Agriculture on February 5, 2007, total oilseeds production during 2006-07 was
expected at 23.62 mt, representing a decline of 15.6% over 2005-06.

• The decline was due to lower output of rapeseed, groundnut and castor-seed. 

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CURRENT SCENARIO
India is one of the world’s largest edible oil economies with

 15,000 oil mills,


 689 solvent extraction units,
 251 Vanaspati plants
 Over 1,000 refineries
 The total market size is at Rs. 600,000 Mln.
 Import export trade is worth Rs.130, 000 Mln.

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Currently, India accounts for

7.0% of world oilseeds output;

7.0% of world oil meal production;

6.0% of world oil meal export;

6.0% of world veg. oil production;

14% of world veg. oil import;

10 % of the world edible oil consumption.

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OILSEEDS PRODUCTION (2001-02 TO 2005-06) (QTY IN MILLION TONNES)

  01-02 02-03 03-04 04-05 05-06 06-07*


Major Oilseeds            

Groundnut 7 4.1 8.1 6.8 8 4.4

Rape/Mustard 5.1 3.9 6.3 7.6 8.1 7.6

Soybean 6 4.7 7.8 6.9 8.3 8.7

Other Six 2.6 2.1 3 3.1 3.6 2.9

Sub-Total 20.7 14.8 25.2 24.4 28 23.6

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*2nd 8/ advance estimate, Ministry of Agriculture 
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MARKET POTENTIAL: EDIBLE OIL DEMAND PROJECTION

  2004 2010 2015

Total Demand (Mln. Tonnes) 10.9 15.6 21.3

Total Area under Oilseeds (Mln. Hectares) 23.4 28 32

Yield (Tonnes/hectare) 1.07 1.2 1.4

Production of Oilseeds (Mln. tonnes) 25.1 33.6 44.8

Domestic supply of edible oils (Mln. tonnes) 7 10.1 13.4

Total edible oil imports - (Mln. tonnes) 4.3 5.9 8.3

Imports as share of demand 39.40% 38.10% 39.50%


Source: Rabo Bank

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MAJOR PLAYERS
Edible Oils                                                         
• National Dairy Development Board (Anand)
• ITC Agro-Tech (Secunderabad)
• Marico Industries (Mumbai)
• Ahmed Mills (Mumbai) 

Vanaspathi
• Hindustan Lever (Mumbai)
• Wipro (Bangalore)
• Rasoi (Calcutta)
• Avi Industries (Mumbai)

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FUTURE: DEMAND DRIVERS
Macroeconomic factors:
• Population growth,
• per capita income,
• purchasing power, 
• oilseeds crop 

Other factors:
• Prices - domestic/ international,
• Availability - oil, oilseeds

Influence of branded products - `health’ message

Growing preference for convenience foods. 

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