1 1 st st Thailand Conference of Fats & Oils Thailand Conference of Fats & Oils Role of Rice Bran Oil & Role of Rice Bran Oil & its Products in Changing Asia its Products in Changing Asia India’s Overall Demand & Supply of Edible Oil with Special Reference to Rice Bran Oil By: 1 Dr.B.V.Mehta Executive Director The Solvent Extractors’ Association of India 16 th -17 th May 2013 Naresuan Naresuan University, University, Phitsanulok Phitsanulok, Thailand , Thailand Presentation Sequence • SEA Profile • Incredible India • Indian General Economy 2 • Agricultural Economy • Indian Oilseed Sector • Edible Oil Demand & Supply – Short term & Long term projection • Rise of Rice Bran Oil in India SEA Profile • Formed in 1963 to foster the development & growth of the Solvent Extraction Industry in India • Largest and Premier Association in the Vegetable Oil 3 Sector in India • First Association in Vegetable Oil & Oilseed sector to receive ISO 9001 Certification in India (2004) • Recognised as NGO and TPO by Government of India Over 850 Members • S. E. Units • Oil Millers • Refiners . Vanaspati Mnfrs. India 33 28 2 18 29 6 SEA Members . Importers . Exporters . Surveyors . Shipping Agents . Fin. institutes . Foreign Buyers & many more…. 32 87 49 291 104 43 9 22 50 2 8 1 4 5 • Second most populous nation • 1.22 Bn people • Largest Democracy • Multi ethnic country What People Talk About India 6 • Country with maximum young people • Median age is 24 years • Amongst the fastest growing economies • Fourth largest economy • Literacy level – 65% (2012) • 3 B’s….
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11stst Thailand Conference of Fats & Oils Thailand Conference of Fats & Oils Role of Rice Bran Oil &Role of Rice Bran Oil &
its Products in Changing Asiaits Products in Changing Asia
India’s Overall Demand & Supply of Edible Oil with Special Reference to Rice Bran Oil
By:
1
Dr.B.V.MehtaExecutive Director
The Solvent Extractors’ Association of India
16th -17th May 2013NaresuanNaresuan University, University, PhitsanulokPhitsanulok, Thailand, Thailand
Presentation Sequence
• SEA Profile
• Incredible India
• Indian General Economy
2
• Agricultural Economy
• Indian Oilseed Sector
• Edible Oil Demand & Supply – Short term & Long term projection
• Rise of Rice Bran Oil in India
SEA Profile
• Formed in 1963 to foster the development & growth ofthe Solvent Extraction Industry in India
• Largest and Premier Association in the Vegetable Oil
3
g gSector in India
• First Association in Vegetable Oil & Oilseed sector toreceive ISO 9001 Certification in India (2004)
• Recognised as NGO and TPO by Government of India
Over 850 Members
• S. E. Units• Oil Millers • Refiners
. Vanaspati Mnfrs.
India
3328
218
29 6
SEA Members
. Importers
. Exporters
. Surveyors
. Shipping Agents
. Fin. institutes
. Foreign Buyers &many more….
32
87
49
291
104 43
9
22
50
2
8
1
4
5
• Second most populous nation
• 1.22 Bn people
• Largest Democracy
• Multi ethnic country
What People Talk About India
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• Country with maximum young people
• Median age is 24 years
• Amongst the fastest growing economies
• Fourth largest economy
• Literacy level – 65% (2012)
• 3 B’s….
2
BOLLYWOOD
7
BEAUTY
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38% of doctors in USA are Indians
12% of scientists in USA are Indians
37% of NASA scientists are Indians
BRAINS…….
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31% of MICROSOFT employees are Indians
27% of IBM employees are Indians
17% of INTEL scientists are Indians
13% of XEROX employees are Indians
Indian General Economy
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• India – a fast growing significant economyin spite of global slowdown
The average GDP growth in last five years is registered at 7.1%
For FY13-14, growth is projected at 6.8%
Source : CMIE
3
I di A i l S i
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Indian Agriculture Scenario
Agriculture Sector GDP Growth
DP
Gro
wth
Ra
te (
%)
14
Agriculture Sector Growth depends heavily on monsoon performance.
For the year 2013-14 growth is forecasted at 2.6%
Ag
ricu
lture
G
Source : CMIE
• Area (3.3 Mn Km2) No. 7
• Arable Land (161.7 Mn Ha) No. 2
• Irrigated land (56.0 Mn Ha) No. 1
• Milk Production No. 1
• Rice Production No. 2
India’s Ranking in the World
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• Wheat Production No. 2
• Rapeseed Production No. 2
• Fruit Production No. 2
• Tea Production No. 2
• Sugar Production No. 2
• Cotton Production No. 2
• Coffee Production No. 5
India’s Agriculture Production
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India is well connected with cellular phone having 930 Million users and with the talk time rate cheapest in the world
Indian Oilseed Sector
Demand - Supply
and
17
and
Import of Vegetable Oils
• Area Under Oilseed Cultivation 26-27 Mn. Ha.• Average yield 1100 Kgs.• Output of 9 cultivated Oilseeds 29.8 Mn. T.• Output of Cottonseed & Copra 11.0 Mn. T.
Total 40.8 Mn. T.
• Production of Vegetable Oils 7 45 Mn T
Oilseed Sector 2012-13
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• Production of Vegetable Oils 7.45 Mn. T.• Demand of Veg. Oils (Edible) 17 .5 Mn.T.• Import of Veg. Oil 2012-13 (Nov-Oct) (Edible) 10.5 Mn.T.(E)
• Per capita consumption (2011) 14.3 Kg.
• Per capita consumption is rising by 3 to 4% per annum.
• In World's Oilseed Production 8.0 %• In World's Oilmeal Production 6.8 %• In World's Oilmeal Export 6.5 %• In World's Production of Veg. Oils 5.2 %• In World’s Vegetable Oil Import 13.6 %• In World's Edible Oil Consumption 10.2 %
Demand Scenario upto 2020Due to high growth in income levels, increasing trend in spending & betterliving standards; India promises to continue high growth in consumption ofedible oils and consumption may reach 23 ml T by 2020 @ 3% growth rate.
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Import of Vegetable Oils by India
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Edible, Vanaspati & Non-edible 2006-07 To 2011-12 (Nov – Oct)
Vegetable Oils
2011-12 2010-11 2009-10 2008-09 2007-08 2006-07
Edible Oils 9.98 8.37 8.82 8.18 5.61 4.71
V ti 0 02 0 05 0 25
Import of Vegetable Oils
(Qty in Mn T)
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Vanaspati(Hydrogenated Fat)
-- -- -- 0.02 0.05 0.25
Non-edible 0.21 0.29 0.42 0.46 0.65 0.63
Total 10.1 8.66 9.24 8.66 6.31 5.59
Source : SEA
Import of Veg Oils is rising from year to year to bridge the demand and supply gap
Stagnant Domestic oil production is leading to higher imports YOY to feed the growing Indian demand. 37
2011-12 2012-13
OilsNov.’11 to
Oct.’12Nov.’12 to
Mar.’13 (LY)2012-13
Projection
RBD Palmoein 1577 621 (821) 1800
Crude Palm Oil 5944 3120 (2079) 6500
Import of Edible Oils by IndiaQty: ‘000 Tonnes
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( )
Crude Soybean Oil 1079 249 (241) 1000
Crude Sunflower Oil 1135 422 (477) 1000
Rape (Canola) Oil 91 8 (38) 100
Others 105 77 (49) 100
Total 9981 4497 (3705) 10500 +India also Imports about 200,000 tonnes of Non-Edible Oil for Industrial Purpose
India's Growing Dependence on Imports
53%59%
49%
62% 58% 61% 59% 57%49%
46%50%
57%
In last 3 years, Import dependence has increased much more due to rising consumption and stagnant domestic production.
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• Low Productivity of Oilseeds
• Small farm sizes
• Lack of varietal replacement
Why the Import of Edible Oil is Rising?
40
p
• Shifting of acreage from Oilseed to other crops
• Losses due to pests and diseases
• Vagaries of nature
What are the Prospects for Indigenous Supplies of Oils in India ?
• Oilseed output targeted by 4% per year
• Vegetable Oil Production increase –
350/400Thousand per year
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• Demand to rise Faster –
700/800 Thousand per year
• Oil Palm cultivation yet to pick up
Demand drivers in India
• Consistent GDP growth rate at above 7 % in last 5 years
• The big emerging Indian middle class.
• Urbanisation
• Nucleus Family
India has a Promising Demand Growth
y
• Change in Food Habits
• The double digit growth of out of home consumption of edible oils.
• Per capita consumption of Edible oils in India at 14.0 kg (2012) which
is still a lot below threshold level of consumption.
• Even with a moderate population growth the absolute increase in
number of people is quiet High.
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Governments Support
• Scheme like NREGA (National Rural Employment GuaranteeAct) and rising labor income is increasing the income level ofpeople who are consuming much below the all India level.
• Supply of edible oils mainly palm oil by the Government at
India has a Promising Demand Growth
• Supply of edible oils , mainly palm oil, by the Government atsubsidized rates under PDS .
• Duty Free-Regime: Nil or negligible duty on crude imports hasfacilitated lower oil price to consumers and in turn pushdemand.
Edible Oil Demand and Import ProjectionShort & Long Term
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Total Demand (MnT) 17.5 19.0 23.10
Domestic Supply (MnT) 6.8 8.0 9.2
Import (Mn T) 10.5 11.0 13.9+
Import as % Share of Demand
60% 57% 61%
* Based on 3% Growth (Excluding Non-edible Oils)
INDIAN RICE BRAN OIL A GROWTH STORY……
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Until recent past (1995), RBO produced in India was mainly used in soapmanufacturing and product mix of vanaspati manufacturing.
Since 1998 SEA, jointly with TMOP & CSIR launched campaign toencourage production and use of RBO as a Healthy Cooking Medium.
Rice Bran Oil - Indian Scenario
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SEA in its crusade to encourage the production and use of Rice BranOil as ‘Health Oil’, has organised 13 National Seminars and a numberof regional workshops in last fifteen years.
It also took a six-member delegation to Japan to study the latesttechnology in RBO processing (2001).
9
2000 onwards it started to be used in Edible purpose in Vanaspati &Blended Oil
2005 onwards with the awareness campaign it was accepted as a verygood healthy cooking oil
Rice Bran Oil - Indian Scenario (Contd..)
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By 2010 – Many RBO & Blended RBO Brands entered into the market
These efforts have gone a long way in encouraging the production ofgood quality refined Rice Bran Oil & progressively increasing itsconsumption as a ‘cooking oil for the Health of Entire Family’.
India produces the best quality of Rice Bran Oil and has emerged as thelargest producer of this oil in the world.
Tocotrienol AnticancerSqualene Good for Nutrition and Integrity of SkinCalcium Phosphate (Dibasic) Organic FertilizerMicrochemicals Industrial and MedicinalGum LecithinPhytin Food Processing IndustryWax Polish, Cosmetic, Carbon Paper, Fruit
It can help in protecting the health of our people from diseases.According to Cardiologists’ Society of India, 30% of India'spopulation is prone to cardiac problems. Since every 1%reduction in Cholesterol, reduces the risk of heart attack by 2%,Rice Bran Oil can become a boon for our people
.
Benefits in Promoting Rice Bran Oil
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It can help bridge the shortage of edible oils in the world whenits full potential of 5 Mn tonnes is exploited.
Rice Bran Oil Promotion will give better realisation for Paddy tothe farmers.
Higher capacity utilisation of rice milling and solvent extractionthereby leading to larger employment opportunities.
Status of Rice Bran Oil in the World
Japanese call it Heart Oil.
In USA, it is being sold as World’s Healthiest Oil.
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In Europe it has aquired the status of Functional Food.
It is accepted as a Premium Cooking Oil in Japan,Thailand and also in India.
Nature’s gift to mankind
Rice Bran OilA nutritionally superior edible oil
And so to conclude….
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A nutritionally superior edible oil
Providing immense benefits for the heart and for general health
A healthier alternative to your existing cookingMedium for a “Healthy, Happy Family”!
Dr. B. V. MehtaExecutive Director
The Solvent Extractors’ Association of IndiaA Premier Association of Vegetable Oil Industry & Trade in India
ISO 9001:2008 Organisation142, Jolly Maker Chambers No. II, 14th Floor, 225, Nariman Point, Mumbai 400 021