GEF sees big shift to rice bran oil
To strengthen market presence in Telangana, AP, Karnataka and Chhattisgarh
Hyderabad: Hyderabad-based edible oil company Gemini Edibles & Fats (GEF) India is seeing big potential in the rice bran oil segment, as it offers less expensive alternative to consumers to sunflower and palm oil. The company is planning to fully convert one of its existing units for rice bran oil production to increase capacities.
P Chandra Shekhara Reddy, VP, Sales & Marketing, GEF India told Telangana Today, “Rice bran oil has a lot of potential in India. Today only one million tonnes of rice bran oil is produced in the country and there is a potential to double it to two million tonnes if additional infrastructure of milling, solvent extraction and refineries is created in the next 4-5 years.”
“Since sunflower oil is becoming expensive, there will be a gradual shift to rice bran oil. Edible oil makers will also see better margins and demand, which will further lead to increased investments and technology in the rice bran oil segment,” he added.
GEF, Reddy said, is going to tap opportunities in Telangana and AP to cater to rice bran oil demand. The company will also make inroads into Karnataka and Chhattisgarh with a range of edible oil offerings. There are plans to set up a new unit and enhance capacities at Nellore.
Covid impact
On the impact of pandemic, he said, palm oil demand saw almost 50 per cent dip in south India during the Covid-19 induced lockdown period as the HoReCa (hotel, restaurant and catering) segment was affected. Post-unlock, the recovery has begun.
Globally, domestic edible oil consumption has increased in the last one year, but the production has fallen from core oil producing nations such as Indonesia and Malaysia, particularly in the palm oil segment. Similarly, soya and sunflower production fell, which led to a surge in price by 40-50 per cent. This is driving a shift in demand to other oils in the last 4-5 months.
“Indian government has identified the need to increase the GDP by enhancing contribution from agriculture, and thus has increased import duty on palmolein, soya and sunflower to encourage domestic farmers to cultivate oil seeds. This in the long run may help reduce import dependency. States such as Telangana have already taken a lead by encouraging oil seeds cultivation, backed by irrigation projects,” added Reddy.
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