Demand Growth

The Indian edible oils & fats industry was pegged at a market size of 17.5 million tonne in FY 2012-13
and valued at approximately INR 1,000 billion.

The industry in India has grown at a CAGR of 13.1 percent from FY 2009-2014. The surge in growth is
majorly originated from growth in palm oil and soyabean oil as a segment of edible oil market. The growth
in this segment has been largely led by the domestic factors such as growing preference for healthy oils,
growth in population base, shift in consumption pattern towards branded oil and favorable government
policies.

It is expected to grow at a considerable CAGR rate and expected to reach at INR 2,080 billion by FY
2018 19 to the increasing number of edible oil brands and rising consumption of edible oil in the country.

Global edible oil production stood at 196.43 Million tonnes in FY 2013-14 with India accounting for
approximately 4.96 percent of the total edible oil global production. Indias consumption of edible oil is
growing annually at 5 percent.

Oilseed production was around 26 Million tonnes and oil production stood at 9.75 Million tonnes in FY
201314. The demand of edible oil in FY 201314 stood at 18.3 Million tonnes. So the gap between
demand and supply is primarily filled through imports.

Government Initiative

Government has allowed 100 percent FDI in edible oil sector to encourage the investors in this sector.

Government has accorded high priority to the sector by launching Oil Plam Development Program
(ISOPOM) in order to promote oil palm cultivation amongst the small holders in the state.

Production (M. T.)

Productivity (T/ha)

India

0.13

1.12

World

58.46

3.58


The Government has announced a grant of INR 3,507 crores, as a part of the 12 th Five Year Plan, to
thrust the production of oilseeds.

The Cabinet Committee on Economic Affairs has also approved the implementation of National
Mission on Oilseeds and Oil which includes acquiring an area of 12.5 lakh hectares to be used exclusively
for oil palm plantations.