The total demand for edible oils is expected to increase from the current level of 130 lakh tonne to 156 lakh tonne in 2010 and further to 208 lakh tonne by 2015, BV Mehta, executive director of the Solvent Extractors’ Association (SEA) said.
This assumes a modest per capita consumption increase of 4% a year and population growth of 1.8% a year, which translates to an overall growth in demand at the rate of 6% per annum. However, if the per capita consumption growth turns out to be higher at 5% or 6%, then demand will be much higher – 226 lakh tonne and 246 lakh tonne by 2015, he said, at the World Palm Oil Summit 2008 held at Jakarta (Indonesia).
The country’s edible oil imports may climb 38% by 2010, straining supplies, as rising incomes among the nation’s middle-class consumers stoke demand for fried food. Imports may total at least 65 lakh tonne, up from 47 lakh tonne last year, said Mehta.
India’s vegetable oil consumption demand is expected to rise faster than the domestic production growth, he said.
The combined kharif (winter) and rabi (summer) crops of oilseeds during current year is estimated at over 272 lakh tonne, compared to 243 lakh tonne the previous year, up by 30 lakh tonne, and availability of vegetable oil from domestic supply is likely to be 85 lakh tonne, as compared to 78 lakh tonne last year.
During November 2007 to April 2008 (six months), import of edible oil has sharply increased and touched 22.4 lakh tonne compared to 17.1 lakh tonne. India imports mainly crude oil in order to utilise its own processing/refining capacity and practically 96% import is in crude form.
Crude palm oil is mainly imported from Indonesia and RBD Palmolein from Malaysia, while soybean oil is mainly imported from Argentina.