Thailand interested in importing rice-bran oil from India

Domestic rice bran oil consumption increasing at 25% CAGR

Thailand, which has an established market for rice bran oil, has shown interest in importing the oil from India. India, on the other hand, is a net importer of edible oil to meet its domestic demand.

B V Mehta, executive director, The Solvent Extractors' Association of India (SEA), said, "Thailand has shown in importing rice bran oil from India. They have an established market for the oil in that country. However, as per government policy, bulk exports of edible oil is not allowed."

India is one of the major producers of rice brand oil globally. The country produces around 900,000 tonnes of rice bran oil annually, while the global production is around 1.2 million tonnes. Japan and Thailand produce around 70,000 tonnes and 60,000 tonnes respectively, while China produces around 50,000 tonnes per annum. India is increasing production by 50,000 tonnes per annum.

Of this 900,000 tonnes of production only 300,000 tonnes is consumed as edible oil, while the rest is used by the vanaspati industry or is blended with other oils. Mehta further informed that the country produces 9 million tonnes of rice bran, of which around 5 million tonne is processed for producing oil, and the rest is used as cattlefeed. Paddy production in the country has increased from 125 million tonnes in 2004-05 to 158 million tonnes in 2013-14 (expected).

Mehta reasoned that, "Rice bran that can be converted into oil is available in the country, if one provides better price to rice millers, then most of the rice bran would go to the oil industry. This can also reduce our import of edible oil."

The country imports around 10 million tonnes of edible oil including plam oil, soybean oil and sunflower oil, each year, which according to the SEA runs into a Rs 60,000 crore import bill. The country's net domestic requirement of edible oil is estimated to be around 18 million tonnes per annum. Earlier last year, Japan too had shown interest in importing the oil from India, however, it is more interested in collaborating with Indian companies to produce value-added products using rice bran oil, which is known as rice oil or 'heart oil' in Japan.

However, the current government policy does not allow export of edible oil in bulk. If allowed, India has the potential to export around 25,000 tonnes of rice bran oil per annum, claimed Mehta, adding that a few containers are already being exported.

The SEA feels that rice bran oil, which contains oryzanol and has numerous health benefits, has a huge potential in the Indian market as well. Coming at around one-fifth of the price of olive oil, and around 10 per cent more expensive than sunflower oil, rice bran oil consumption in the country has been clocking a 20-25 per cent growth rate in the last four-five years. The oil is priced between Rs 115-125 a litre at present. In value terms, the 300,000 tonnes per annum rice bran oil is pegged at around Rs 3,000 crore.

 

Rich in monounsaturated fatty acids and a higher cholesterol reducing power than other poly-unsaturated fatty acids rich oils works to reduce hypertension, improving insulin sensitivity of the blood, contains natural vitamin E and is an antioxidant.