The Indian vegetable oil market accounts for 10 % of the total world consumption of 169 Million Tones (year 2010, projected). Consumption of vegetable oil in India stands at 15 million tons for the oil year Oct 08 – Nov 09 and is expected to touch 17 million tons for oil year Oct 09 – Nov 10. In value terms the Indian vegetable oil market is pegged at Rupees 750 billion. The packaged vegetable oil market in India stands at only 25%, i.e. Rupees 187.5 billion.
Analysts and experts have projected that the consumption of vegetable oil will touch 30 million MT in the 2020 with a CAGR growth of 6 -7 %. This growth rate is 3 times the world growth rate of 2% CAGR. The per capita consumption of edible oil in India has improved over last couple of years and stands at 15 kg per year for 2010, but it is still way below the world average of 24 kg per year. Due to increase in awareness and health consciousness, increase in disposable income and rural prosperity due to schemes like NREGS, the packaged oil segment is growing faster than the category and is expected to touch 50% - 60% of total vegetable oil consumption by 2015.
The vegetable oil industry in India is highly fragmented. It has the largest number of oil mills, solvent extractors and refineries. As of January 2009, India had 1, 50, 000 oilseeds crushing units, 795 solvent extraction units, 943 refineries. These units include those under the small scale industries as well as the organized sector. The capacity utilization varies from 10 % in case of ghanis (small scale sector) to 30 % in case of extractors in the organized sector.
India is the fifth largest producer of major oilseeds. In the oil year 2008 – 09, India produced 27.7 million tons of Oilseeds. Both, the oil seed yield per hectare as well as oil extracted from the oil seeds in India is lower than the world average. Hence, India is a net importer and imports almost 50% of the oil required for its consumption, which is 14 % of the total world imports.
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