ICRBO 2019

Indian Rice Bran Oil Industry

and
Future Outlook

By:
Dr. B. V. Mehta
Executive Director
The Solvent Extractors’ Association of India

26th – 28th June, 2019

Guangzhou, China
1
 SEA Profile

➢ Formed in 1963 to foster the development & growth of the Solvent

Extraction & Vegetable Oil Industry in India

➢ Largest and Premier Association in the Vegetable Oil Sector in India –

over 800 members across the country

➢ First Association in Vegetable Oil & Oilseed sector to receive ISO 9001
Certification in India (2004), now upgrade to ISO 9001 : 2015

➢ Recognised as NGO by Ministry of Agriculture and TPO by Ministry of

Commerce, Government of India

➢ ITC, Geneva (United Nation) has recognised SEA as the Best &
Successful Model Association

➢ SEA is the founder member of IARBO

2
 India – Fastest Growing Economy

Comparative GDP Growth Rates

2015 2016 2017 2018

World Output 3.2 3.1 3.4 3.6

Adv. Economics 2.1 1.6 1.8

United States 2.6 1.6 2.2 2.8

Euro Area 2.0 1.7 1.5

China 6.9 6.7 6.8 6.6

India 7.3 7.6 7.6 7.0

3
Indian General Economy

4
 Indian Macro-Economic Overview

• India – a fast growing significant economy

in spite of global slowdown

• Strong Macro-economic fundamentals

• GDP Value: Over US$ 2.60 Trillion (Tn)

• Purchasing Power Parity (PPP): US$ 8.72 Tn

• Forex Reserve: US$ 422 Bn and growing

• FDI Flow US$ 60 Bn (2018)

• Per Capita Income : US$ 1977 (Rs. 138,000)

• Income Growth Rate : 8.6%

5
 India's Overall GDP Growth

9.5 9.6 9.3

8.6 8.9
7.9
GDP Growth Rate (%)

7.5 7.3 7.2

6.7 6.7 7.0
6.6 6.6

4.9

➢ Average GDP growth in last five years is registered at 7.0%

➢ For FY 18-19, GDP growth is forecasted at 7.2%

Source : Economic Survey 6

 Agriculture GDP Growth Rate (%)
Agriculture Sector GDP Growth

➢ Agriculture Sector Growth depends heavily on monsoon performance

➢ For 2017-18, agri growth was lower (5.0%)
➢ For the year 2018-19, the GDP growth decreased to 2.7% due to failure of monsoon

Source : Economic Survey 7

India’s Oilseeds Scenario

Demand - Supply

and

Import of Vegetable Oils

8
 Oilseed Sector 2017-18
• Area Under Oilseed Cultivation 25.4 Mn. Ha.
• Average yield * 950 Kg.

• Output of 9 cultivated Oilseeds * 24.1 MnT

• Output of Cottonseed & Copra * 11.8 MnT
Total 35.9 MnT
• Production of Oilcake/meal 26.5 MnT
• Production Edible & Non-edible Veg. Oils 7.7 MnT
• Demand of Veg. Oils (Edible) 23.0 MnT
• Import of Veg. Oil 2017-18(Nov-Oct) 15.1 MnT
• Population (2018) 1.32 Bn.

• Per Capita consumption 17.5 kg

The overall turn over of the oilseeds sector is INR 175,000 crores ( US$ 27 bn) and on
Import front, vegetable oils is 3rd item after Crude Petroleum and Gold. India spends
over INR 75,000 crores (US$ 11.5 bn) for import of edible oils per annum and its
dependence on imports is nearly 70%

MnT = Million Tonnes * Trade Estimate 9

Consumption

10
 Per Capita (kg) Disappearance of Oils and Fats in
Selected Countries and World

Country 2017-18 2016-17 2015-16 2014-15 2013-14

EU-28 66.3 65.7 64.5 63.6 63.6

U.S.A. 71.3 68.9 67.6 64.3 62.7
Argentina 82.4 89.2 81.1 74.3 82.3
China 26.7 26.5 26.3 26.1 25.7
Brazil 48.4 44.9 43.5 44.1 41.5
India 18.2 17.9 17.5 16.8 15.9
Pakistan 25.4 24.9 24.2 23.4 22.5
Indonesia 46.9 43.2 41.9 35.3 40.9
Thailand 41.5 39.3 37.9 35.3 34.5
Turkey 33.3 33.1 33.5 33.8 33.6

World 29.3 28.7 28.2 27.5 27.2

➢ Number shown includes consumption of oils and fats for Bio-energy / Non-edible purpose

Source : Oil World 2018 11

 Edible Oil Consumption in India
Qty : ‘000 T

2001-02 2008-09 2017-18

Particulars
Qty % Qty % Qty %
Palm Oil 2944 29.1 6392 45.5 8837 39.7
Soy Oil 2258 22.3 2112 15.0 4548 20.4
Mustard Oil 1721 17.0 1610 11.5 2426 10.9
Sunflower Oil 309 3.1 846 6.0 2579 11.6
Cotton Oil 443 4.4 965 6.9 1257 5.6
Groundnut Oil 1216 12.0 591 4.2 574 2.6
RBO & Other Oils 1234 12.2 1543 10.9 2029 9.1
Total 10125 100% 14059 100% 22250 100%
➢ Consumption of Palm oil in India is now nearly 40%, while Soybean Oil is about 20%
and Rice Bran oil is 4% of the total oil consumption.
Source : GGN Research 12
Indian Rice Bran Oil....
A Growth Story

13
 Global Rice Production and Country wise Share

2017-18 2018-19
Country Qty ‘000 MnT Percentage Qty ‘000 MnT Percentage

China 148,873 30.07 148,490

Burma Philippines Japan Others
29.70
India 112,910 22.80 116,000
3% 2.5% 2% 0%
23.20 Thailand
Indonesia 37,000 7.47 37,100 7.42 3%
Bangladesh 32,650 6.59 35,000 7.00 China
Vietnam
Vietnam 27,657 5.58 27,711 35%
5.54 7%
Thailand 20,577 4.16 20,715 4.14 Bangladesh
Burma 13,200 2.66 13,100 2.62 8%
Philippines 12,235 2.47 12,000 2.40
Indonesia
Japan 7,787 1.57 7,650 1.53
9%
Brazil 8,204 1.65 7,480 1.49
Pakistan 7,500 1.51 7,400 1.48
India
United States 5,659 1.14 7,119 1.42
28%
Cambodia 5,554 1.12 5,633 1.13
Korea, South 3,972 0.80 3,868 0.77
Nepal 3,310 0.66 3,530 0.71
Nigeria 4,662 0.94 4,788 0.95
Others 43,277 8.74 42,305 8.46
World Total 495,027 100.0 499,889 100.0
Source : USDA 14
 Production of Food Grains & Rice in India

Qty MnT
300 Year Food Rice Percentage
Grains Mn %
250 MnT

200 2018-19 281.37 115.60 41.08

2017-18 284.83 112.91 39.64
150
2016-17 275.11 109.70 39.87

100 2015-16 251.54 104.41 41.50

2014-15 252.0 105.5 41.9
50 2013-14 265.0 106.6 40.2
2012-13 257.1 105.2 40.9
0
2011-12 259.3 105.3 40.6
2010-11 244.5 96.0 39.3
Food Grains MnT Rice MnT 2009-10 218.1 89.1 40.8

Source : Government of India (GOI) 15

 India’s Rice Production in Global Context
Qty MnT
600
World Indian
India’s
500 Product Product
Year Share
ion in ion in
(In %)
MnT MnT
400

2018-19 499 115.6 23.25

300
2017-18 495 112.9 22.80

200 2016-17 491 109.7 22.34

2015-16 476 104.4 21.93
100 2014-15 476 105.5 22.16
2013-14 478 106.6 22.30
0 2012-13 473 105.2 22.24
2011-12 468 105.3 22.50
2010-11 449 96.0 21.38

World Production Indian Production 2009-10 457 89.1 19.50

Source : USDA and GOI 16

Top Ten Rice Producing States in India

1. Andhra Pradesh
& Telangana
2. Tamil Nadu
3. West Bengal
4. Karnataka
5. Uttar Pradesh
6. Chhattisgarh
7. Orissa
8. Punjab
9. Haryana
10.Maharashtra
17
 India’s Paddy Production
Qty in MnT Year Qty in MnT
2004-05 125
180 2005-06 137
2006-07 140
160 2007-08 137
140 2008-09 148
2009-10 133
120 2010-11 142
2011-12 149
100
2012-13 155
80 2013-14 159
2014-15 158
60 2015-16 156
40 2016-17 163
2017-18 165
20 2018-19P) 172
0

➢ Paddy Production increased from 125 MnT to 172 MnT in 15

years
18
 Rice Bran Potential
Year Qty in MnT
Qty in MnT 2004-05 7.0
100 2005-06 7.7
2006-07 7.9
90
2007-08 8.0
80 2008-09 8.4
2009-10 7.6
70
2010-11 8.1
60 2011-12 8.5
50 2012-13 8.9
2013-14 9.1
40 2014-15 9.0
30 2015-16 9.3
2016-17 9.6
20 2017-18 9.8
10 2018-19(P) 10.00

➢ Average Recovery is 6% from Paddy. Rice Bran Potential in India is

about 10.0 MnT
19
 Rice Bran Oil Potential
Qty in MnT Year Qty in MnT
18 2004-05 1.235
2005-06 1.354
16
2006-07 1.388
14 2007-08 1.400
2008-09 1.470
12 2009-10 1.328
2010-11 1.418
10 2011-12 1.484
2012-13 1.551
8
2013-14 1.586
6 2014-15 1.569
2015-16 1.550
4 2016-17 1.620
2017-18 1.650
2 2018-19(P) 1.710
0

➢ Average RBO Recovery is 17% to 18% from Rice Bran. Current

potential of RBO is about 1.71 MnT
20
 Rice Bran Processing
Year Qty in MnT
Qty in MnT 2004-05 4.0
60 2005-06 4.3
2006-07 4.4
50 2007-08 4.4
2008-09 4.5
2009-10 4.0
40 2010-11 4.4
2011-12 4.6
2012-13 4.8
30 2013-14 5.0
2014-15 4.8
20 2015-16 4.9
2016-17 5.0
2017-18 5.0
10 2018-19(P) 5.2

➢ Currently India is processing about 5.2 MnT of Rice Bran

21
 Rice Bran Oil Production
Qty in MnT Year Qty in MnT
12 2004-05 0.68
2005-06 0.73
2006-07 0.75
10 2007-08 0.80
2008-09 0.85
2009-10 0.80
8
2010-11 0.83
2011-12 0.88
6 2012-13 0.90
2013-14 0.93
2014-15 0.93
4 2015-16 0.95
2016-17 0.98
2 2017-18 1.00
2018-19(P) 1.03

➢ India is producing about 1,030,000 Tonnes of Rice Bran Oil

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 Untapped Potential Rice Bran Oil
Qty in MnT Year Qty in MnT
2004-05 0.55
7
2005-06 0.62
2006-07 0.64
6 2007-08 0.60
2008-09 0.62
5 2009-10 0.53
2010-11 0.59
2011-12 0.60
4
2012-13 0.65
2013-14 0.66
3 2014-15 0.64
2015-16 0.60
2 2016-17 0.64
2017-18 0.65
2018-19(P) 0.68
1

23
 India – Rice Bran Oil Potential & Production
2018-19
Summary
Paddy Production 172 MnT

Rice Production 115 MnT

Rice Bran Potential (6% of Paddy) 10.30 MnT

Rice Bran Oil Potential 1.70 MnT

Rice Bran Processing 5.20 MnT

Rice Bran Oil Production 1.03 MnT

Untapped Potential for RBO 0.68 MnT

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Leading Rice Bran Oil Brands in India

This is not an exhaustive list

25
Leading Rice Bran Oil Brands in India

This is not an exhaustive list

26
 Indian RBO - Challenges & Way Forward

• Major problem in Rice Bran Oil is the rapid deterioration of Oil quality

– Modern milling processes help ensuring reduced deterioration of Bran

– Extraction plants in proximity to rice mills help in ensuring oil quality

– Going forward, large Rice Mills with integrated extractions plants may be the
answer to this challenge

• Another major issue is its relatively high color, especially the red hue

– Over the years Indian consumers have started believing that lower color
indicates better quality of Oil

• It is important for us to educate the consumers about health benefits of Rice Bran
Oil as well as the fact that high color does not necessarily means poor quality

• Awareness of Rice Bran Oil world across will create demand and thereby the
opportunity to exploit the potential & better realization of RBO

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 World – Rice Bran Oil Potential & Production

2018-19 (P)

World Production of Rice 499.89 MnT

Rice Bran Potential (8.5% of Rice Production) 42.50 MnT

Rice Bran Oil Potential ( 17.5% Recovery ) 7.44 MnT

Current Production of Rice Bran Oil 1.65 MnT

World Untapped Potential 5.79 MnT

Percentage of Untapped Potential 78%

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 Major Countries Producing Rice Bran Oil

Country Production (Tons)

Production in Tons
India 1,030,000 4% 2%
3%
5%
China 400,000
24%
Japan 80,000
62%

Thailand 60,000

Vietnam 30,000

Others 50,000
India China Japan Thailand Vietnam Others

Total 1,650,000

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 Lessons from Olive Oil Marketing

• World produce about 3 MnT of Olive oil only, however, it fetches over
US$ 3,200 to 3,500 per Ton.

• The number of studies conducted shows that Rice Bran Oil is much
better than Olive oil in number of parameters, but it is fetching very low
price as compared to Olive oil.

• International Olive Council has done wonderful marketing and placed the
Olive oil as most premium and healthy oil.

• I am sure the Marketing Committee of IARBO will have herculean task

and challenge to create awareness about good virtue of rice bran oil and
thereby placing RBO in premium oil bracket in line with Olive oil.

30
 Rice Bran Oil - Key Takeaways

• China and India contribute 50% of the world Rice production.

• Indonesia and Bangladesh are also sizable producers of Rice. Rice Bran
Oil potential not properly exploited by these countries.

• Against potential of 7.4 MnT, RBO production currently stands at 1.65

MnT, thereby untapped potential is 5.8 MnT.

• Chinese production is rising very fast. Current production estimate is

400,000 tons.

• Indian produces 1 MnT of RBO against potential of 1.6 MnT.

• Indian efforts are relatively better, but still lot needs to be done.

• Important that the world is made aware of the huge potential of untapped
opportunity of 5.8 MnT of RBO, which needs to be fully explored.

31
 SEA Website on RBO

SEA has a dedicated Website

On Rice Bran Oil

Visit Website : www.ricebranoil.co.in

To know more about Indian Rice Bran Oil
32
 Dr. B. V. Mehta
Executive Director

The Solvent Extractors’ Association of India

A Premier Association of Vegetable Oil Industry & Trade in India
ISO 9001:2015 Organisation
142, Jolly Maker Chambers No. II, 14th Floor, 225, Nariman Point, Mumbai 400 021
Tel: (+91-22) 2202 1475. 2282 2979, Fax.: (+91-22) 2202 1692
Email: solvent@mtnl.net.in , Website:www.seaofindia.com

File : H/Word/Presentations/ICRBO Conference 2019, 26th – 28th June, 2019, Guangzhou, China

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