AN OVERVIEW

OF

EDIBLE OIL
ASHISH JAIN
MBA (AGRI BUSINESS)
PATH OF PRESENTATION
INRODUCTION

• 7%
 GLOBAL SCENARIO

• Share in world oilseed area

- 15.6%
• Share in world oilseed production -
9.2%
• Share in world oilseed output
- 7.4%
• Share in world oil meal production -
6.8%
• Share in world oil meal export
- 3.9%
 STRUCTUTRE OF INDUSTRY

Sources : Directorate of Vanaspati, Vegetable Oil & Fats

5
 Installed Capacity and Prodution (MT
/year) (2005-06)
CONT….
Potential from Non Traditional sources
 SEGMENTATION OF OILS

Blended Edible Oil

 PRODUCTION STATISTICS

(State – wise)
*Total Production : 24289.4 (in ‘000 tonne) * Total Area : 26512.7 (in
‘000 hactare)
CONTI….....

(Crop – wise) (in ‘000 tonns)

CONTI…..
CONTI..
CONTI…..

• Total Edible oil Production : 65.7 Lakh Tonn

(2007-08)
 Oil Extraction and
Expression Methods

OIL CAKES

IMPURITIES
 SWOT ANALYSIS FOR
INDIAN EDIBLE OILSEED
 STRENGTH
• Diverse agro – climatic
situations
• Semi arid ecosystem > 50% of area
> 55% of
prodn.
• Sub humid & arid ecosystem ~ 20%
• Strong research network for
development of oilseed technology
• In 1967, AICRP on oilseed ( 5 crops)
• In 1972, 3 more crops
• In 1977, Project Directorate
• In 1979 & 1993, NRCs for groundnut
& mustard respectively.
Strong frontline extension
network for technology
dissemination
• Technology mission on oilseeds
(TMO)
• Integrates scheme on Oilseeds Pulses,
oilpalm and Maize (ISOPOM)
• Prodn & Distribution of quality seeds
Impact of technology
• Human resource development
• Initiatives from oil industry
• Contract farming – Punjab (100
acres)
• SEA of Punjab with Punjab Agro –
Industries Corporation – projects.
• SOPA, COOIT - Platform for
researchers, technocrats,
industry representatives and
consumers.
 WEAKNESS
• Production
situation
• 76% area under rainfed
condition
• Present level of seed
replacement (6 – 8%)
• Prone to 64 major diseases
• Absence of market
mechanism to hedge the yield
risk
• System constraints in public
sector Transfer of oilseed
technology
- Multiplicities of technology
transfer
- Narrow focus of agricultural
- Little attention to
disseminate oilseed
technology
- Farmers Training Centre
- Poor extension linkage
- Ineffective communication
- 90% of budget is allocated
to salaries and personal
emoluments
• Processing
situation
• Outdated technology
• Lower rate of utilization of
installed capacity
• Low oil recoveries
 OPPRTUNITIES
• Production • Supplementary oil
situation sources
• Encouraging germplasm • From non traditional
front with high level of oil sources.
resistance 19 (29.6%) and
partial resistance 33
(51.5%)
• Extending oilseed
cultivation in underutilized
farming conditions
• Contingency farming
• Processing
situation
 THREATS
• Production • Processing
situation situation
• Insufficient domestic • Underutilization of
supply resources
• Continuous cultivation • Lack of assured
without any crop market for oilseeds
rotation • The standards set by
• Vagaries of monsoon import countries are
and pestilence very high (Trade
• Liberalization of barriers)
export import policies
 DEMAND FOR EDIBLE OILS
•
 DEMAND PROJECTION FOR
FUTURE
According to NCAER,
• Edible oil demand - 20.16 m ton/annum in the next 7
years, given 6% rise in per capita income. (Presently –
12.5 mton /annum)
• Increase in
per capita consumption 4%
population = 1.8%
overall growth in demand = 6%
• This means present level of
production needs to be increase
by three times to meet the
projected demand.
(Projection
AVAILABLITY OF EDIBLE OIL

Source : Solvent Extractors Association of India & Ministry of Agriculture

CONSUMPTION PATTERN OF
CONSUMERS
CONT…..
•
IMPORTS AND EXPORTS
EXPORTS
CONT..
 STATUTARY REGULATIONS
VEGETABLE OIL PRODUCTS ORDER,
1998
Removal of multiple authorities and agencies
Removal of BIS certificate

EDIBLE OILS PACKAGING

ORDER1998
to sold only in packed be Packers
will have to register themselves,

SOLVENT EXTRACTED OIL,

DE-OILED MEAL AND EDIBLE
FLOUR (CONTROL) ORDER,
1967
30
 DUTY REGIMES
Custom Duty
CONTI…
Import duty
CONTI…
• Value Added Tax (VAT)
• Differences in the percentage rates
and rules from State to State.
• 4% VAT + Octroi + Local Taxes = 6 –
7%
Export-Import Measures
EDIBLE OIL : ON THE BOIL
FECTORS FOR FUTURE
 MARKET SHARE OF
MAJOR PLAYERS

Source: Ruchi soya

CONTI…
 RECOMMENDATIONS FOR
MARKETING
• Better enforcement of • Better management of
regulated markets edible oil price
• Strengthening the fluctuation risk during
appropriate market shortage
institutions • Improving quality of
• Introduction of information and
forward marketing and efficiency of its
contract farming dissemination
• Promotion of market • Rewarding better
integration quality produce
• Price incentives for • Strengthening
edible oil shortage regulations regarding
quality
 REFERENCES
• SAARCs OILS & FATS (March 08, July 08,
August 08)
• www.cooit.org
• www.sea.nic.in
• www.fcamin.nic.in
• www.indiaagristat.com
• www.indialawoffices.com
 THANK
YOU
• THANK YOU
• Top 10% population > 20 Kgs / capita
• Bottom 30% population < 5 Kgs /
capita
 PACKAGED EDIBLE OILS
• With growing quality consciousness
and plummeting price, the packaged
edible oil sector will capture 50% of
the market share within three years.
• The packaged edible oil consumption
is only about 20% of the total 12.5
million tonne domestic consumption.
 STATUTORY REGULATIONS
• Vegetable Oil Products (Regulation)
Order, 1998
• dated 16-12-1998 replacing the earlier two Control Orders,
namely, the Vegetable Oil Products (Control) Order, 1947
and the Vegetable Oil Products (Standards of Quality) Order,
1975

• Edible Oils Packaging (Regulation)

Order, 1998
• to ensure availability of safe and quality edible oils in
packed form to the consumers

• Solvent Extracted Oil, De-oiled Meal