The growth in per capita edible oil consumption is likely to decline by 3 per cent in this oil year (November 2006-October 2007) compared with 6 per cent rise in the year-ago period. The decline in consumption is despite the country's rapid GDP growth, according to Dorab Mistry, director, Godrej International. | |
| Presenting a paper at Globoil International 2007 in Jakarta, Mistry said the per capita edible oil consumption would grow by 3 per cent to 11.48 kg this year compared with 6 per cent rise to 11.16 kg last year and 10.52 kg in 2004-05. The consumption surged by 20.5 per cent since 2002-03, thanks to a good economic growth, he pointed out. |
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| The edible oil consumption was directly proportional to the growth in per capita income. This indicated that "the more you earn, the more edible oil you consume", said Mistry. |
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| The paper noted that an estimated growth of 47 per cent in palm oil consumption to 4.62 million tonnes (mt) from 2.25 mt would be offset by 20 per cent decline in soybean oil consumption to 2.30 mt from 2.85 mt and 31.50 per cent fall in groundnut oil consumption. Groundnut oil consumption was likely to decline 0.70 mt from 1.02 mt last year. Similarly, rapeseed oil consumption was also estimated to decline this year to 1.95 mt from 2.25 mt last year, the paper said. |
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| Mistry also lowered rapeseed and mustard output estimate for the ongoing rabi season to 5.5 mt compared with 6 mt in his earlier estimate a few months ago. Attributing the downward estimate to a higher than normal temperature in the early part of the crop-growing season, Mistry said the situation would result into a decline in the country's oil production by 0.5 mt this season to 6.6 mt from 7.1 mt in the previous season. |
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| Mistry projected the country's total vegetable oil imports at 6.4 mt in 2006-07 compared with 5.4 mt last year on the back of a weak dollar, reasonable freight and strong economic growth. |
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