The Indian consumption pattern of edible oil is extreme variation. Edible oil is not only consumed as cooking oil, but also applied in different industries and some other uses. India is the fourth largest edible oil market in the world after the U.S.A, China, and Brazil, accounting for around 9 percent of the world’s oilseed production.

pressed cooking oil

India Edible Oil Production

Due to the setting up of the Technology Mission on Oilseeds in 1986, the production of oilseeds increased to 24.8 million tonnes in 1998-99 from about 11.3 million tonnes in 1986-87. The production of oilseeds declined to 20.7 million tonnes in 1999-2000 as the un-seasonal rain. However, the oilseeds production went up to 27.98 million tones in 2005-06. The production of nine major oilseeds is about 30.9 million tons during 2012-13 (Nov.-Oct.) and it is estimated to be about 33.0 million tons during 2013-14 (Nov.-Oct.).

Edible Oil Consumption In India

Vegetable oil consumption has increased due to rise in overall household income, surging retail sector, increasing health awareness, growing population, and increasing demand. India’s edible oil consumption is expected to rise 5.6 percent to a record 19.3 million tonnes in the 2014/15 marketing year that began from Nov 2014, estimates Govindbhai Patel, a widely respected trade expert and managing director of GG Patel & Nihil Research Co.

Types Of Oils

India is fortunate in having a wide range of oilseeds crops grown in its different agro-climatic zones. Groundnut, mustard/rapeseed, sesame, safflower, linseed, niger seed/castor are the major traditionally cultivated oilseeds. Soybean and sunflower have also assumed importance in recent years. Coconut oil, rice bran oil, cottonseed oil and oilseeds of the tree are also a significant source of oils. Palm oil is grown in Andhra Pradesh, Karnataka, Tamil Nadu in addition to Kerala and Andaman & Nicobar Islands now.

Consumption Patterns

India is a vast country. Different regions have a different preference for edible oil. For example, people in the South and West prefer groundnut oil while those in the East and North use mustard/rapeseed oil. Some regions in the South prefer coconut oil and sesame oil while inhabitants of northern plain prefer Vanaspati, a term used to denote a partially hydrogenated edible oil mixture.
As the development of the oil technology, all oils can be presented as colorless, odorless and tasteless through refining, bleaching, and deodorization. Therefore, new kind of oils which were not known before have entered the kitchen, such as cottonseed, sunflower, palm oil, soybean, and rice bran, attracting most traditional customers due to their strong and distinctive taste.

Edible Oil Industry Prospect

cooking oil

The share of raw oil, refined oil, and vanaspati in the total edible oil market is estimated roughly at 35%, 55%, and 10% respectively.
The government’s economic policy that allows greater freedom to open markets and encourages healthy competition and self-regulation, rather than the protection and control, which will be conducive to the new entrant. Relaxed controls and regulations have to lead to a competitive market dominated by both domestic and multinational players.
India is the second most populated country in the world with a population of 1,21 billion people. According to the current population prospects of the United Nations, the population of India in the year 2050 will first rise to 1,62 billion. Oil is an essential product of people’s lives, so with the increase in population, the demand for oil will increase.
Provided the positive macro and demographic fundamentals in India, the edible oil market will have a favorable demand growth prospect.