OFI September Digital Edition

OILS & FATS INTERNATIONAL DIGITAL EDITION September 2016 www.ofimagazine.com

FOCUS ON INDIA

Alarm over rising imports

EDIBLE OILS

Rice bran’s liquid gold

India Digital Edition

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Science behind Technology

T H E B USI N ESS MAGAZI NE FOR THE OILS AND FATS INDUSTRY

CONTENTS DIGITAL ISSUE 1 SEPTEMBER 2016 EDITORIAL: Editor: Serena Lim Tel: +44 (0)1737 855066 E-mail: serenalim@quartzltd.com

NEWS & EVENTS 3

Monsanto withdraws GM seed application

Editorial Assistant: Rose Hales Tel: +44 (0)1737 855157 E-mail: rosehales@quartzltd.com SALES: Sales Manager: Mark Winthrop-Wallace Tel: +44 (0)1737 855 114 E-mail: markww@quartzltd.com Sales Consultant: Anita Revis Tel: +44 (0)1737 855068 E-mail: anitarevis@quartzltd.com

India News

4

World News

Global palm oil supplies to fall 2.5M tonnes 5

Diary of Events

INDIA IS PROJECTED TO REQUIRE SOME 30M TONNES OF EDIBLE OILS IN 10 YEARS’ TIME. ALREADY THE WORLD’S LARGEST VEGETABLE OIL IMPORTER, WHAT CAN THE COUNTRY DO TO PROMOTE ITS DOMESTIC OILSEED AND PROCESSING SECTOR? P14

Chinese Sales Executive: Erik Heath Tel: +44 (0)1737 855108 E-mail: erikheath@quartzltd.com PRODUCTION: Production Editor: Carol Baird E-mail: carolbaird@quartzltd.com CORPORATE: Managing Director: Steve Diprose Tel: +44 (0)1737 855164 E-mail: stevediprose@quartzltd.com SUBSCRIPTIONS: Elizabeth Barford Tel: +44 (0)1737 855028 E-mail: subscriptions@quartzltd.com Address: Subscriptions, Quartz House, 20 Clarendon Road, Redhill, Surrey, RH1 1QX, UK

FEATURES FEEDSTOCKS

6

17

A global player: past and present

20

Family fortunes

22

Mumbai to host OFI India 2017

Deadly opportunity

EDIBLE OIL

Annual Subscription: UK £149, Overseas £173.

Two years: UK £268, Overseas £311. Single copy £37 © 2016 Quartz Business Media ISSN 0267-8853 Website: www.ofimagazine.com

A member of FOSFA Oils & Fats International (USPS No: 020-747) is published eight times/year by Quartz Business Media Ltd and distributed in the USA by DSW, 75 Aberdeen Road, Emigsville PA 17318-0437. Periodicals postage paid at Emigsville, PA. POSTMASTER: Send address changes to Oils & Fats c/o PO Box 437, Emigsville, PA 17318-0437 Published by Quartz Business Media Ltd Quartz House, 20 Clarendon Road Redhill, Surrey RH1 1QX, UK Tel: +44 (0)1737 855000 Fax: +44 (0)1737 855034 E-mail: oilsandfats@quartzltd.com

@oilsandfatsint

Oils & Fats International

10

Rice bran’s liquid gold

12

Fighting malnutrition in India

FOCUS ON INDIA

FOCUS ON INDIA

14 Alarm over rising imports

23

Plant & technology listing 2016

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INDIA NEW S

Monsanto withdraws GM seed application

N

umber one global seed supplier Monsanto Co has withdrawn an application for approval of its next generation of GM cotton seed in India, in a continuing row with the government over royalties and technology sharing, Reuters reported on 25 August.

A Monsanto spokesman said the withdrawal was “an outcome of the uncertainty in the business and regulatory environment” but the move had “no impact on our current cotton portfolio being sold in India”, the report said.

A letter sent on 5 July by Monsanto’s local partner in India, Maharashtra Hybrid Seeds Co Ltd (Mahyco), had objected to a government

IN BRIEF PROCESSING: Emami Agrotech Limited is investing Rs 300 crore to expand the capacity of its edible oil refinery in Haldia, the Economic Times reprted on 14 July.

The company currrently had a total capacity of around 4,000 tonnes/day spread between two plants in Haldia (3,000 tonnes/ day) and Krishnapatnam (1,000 tonnes/day).

The company planned to expand capacity at Haldia by 1,000 tonnes/day.

“This will make our Haldia facility the largest single location edible oil refinery in India,” said Emami group director Aditya Agarwal.

Agarwal said the expansion would be completed by the end of this year.

Emami was also setting up a new 2,000 tonnes/day plant near Kandla port in Gujarat.

A mustard seed oil facility was also planned for Rajasthan.

With all the expansions, Emami would become the second largest player after Adani Wilmar in terms of capacity within 18 months, Agarwal said.

BIOTECH: On 7 April, the Ministry of Environment, Forest and Climate Change agreed to exempt oilseeds and their products from the Biodiversity Act, which aims to preserve biological diversity in the country. Oilseed crushers and processors have opposed their crops being included in the act, as they may have had to pay charges ranging from 0.12% of their turnover for using any biological resources for commercial purposes.

proposal to force Monsanto to share its technology with local seed companies.

Mahyco wrote that the proposal “alarmed us and raised serious concerns about the protection of intellectual property rights” and asked the Genetic Engineering Appraisal Committee (GEAC) to return data submitted by it as part of its application for Bollgard II Roundup Ready Flex technology.

Reuters said the government had temporarily withdrawn its order and was seeking and evaluating feedback from stakeholders.

Monsanto is also in dispute with India over a proposal to impose a 70% cut in royalties that

local firms pay for its GM cotton seeds.

According to Reuters, India is Monsanto’s second largest market outside the Americas, bringing in royalties of 6.5bn Indian rupees (US$97M).

India first allowed GM cotton cultivation in 2002 by approving Monsanto’s single gene Bollgard I technology. Bollgard II was approved in 2006, turning the country into the world’s top cotton producer and second-largest exporter, Reuters said.

Mahyco said it would seek to revive the application for Bollgard II Roundup Ready Flex “at a suitable time”, the report said.

Imports to hit record 15M tonnes

I

ndia’s edible oil imports may rise to a record 15M tonnes in the current marketing year ending in October as a result of increasing domestic demand, reports the Press Trust of India (PTI) on 21 August.

The country imported 14.61M tonnes of edible oil in 2014-2015 (November- October) and the Solvent Extractors’ Association of India (SEA) said it was estimating imports of 1.2-1.3M tonnes in the remaining three months of the current oil year.

“So the overall vegetable oil imports will be 15M tonnes in 201516,” said SEA executive director B V Mehta.

Domestic demand was expected to rise to 20-21M tonnes.

Mehta also said the duty difference between imports of crude and refined crude vegetable oils should be increased from 7.5% to 15% in order to protect the domestic industry. The current import duty on crude edible oil is 12.5% and that for refined edible oil is 20%.

During the November 2015-July 2016 period, imports of refined/ bleached/deodorised (RBD) palm olein increased to 1.984M tonnes compared with 1.098M tonnes in the same period last year. This was expected to rise further in the coming months.

“The alarming increase in imports of RBD palm olein is seriously hurting the domestic refining industry,” Mehta told PTI. “This situation has arisen because the landed cost of RBD olein is currently the same as that of crude palm oil. Due to this, the domestic refining industry is facing a severe crisis of under-utilisation of capacity and is on the verge of closure.”

Kerala to introduce fat tax T he southern Indian state of Kerala has become the first in the country to introduce a “fat tax” on burgers, pizzas, doughnuts and tacos in branded restaurants, reports the BBC on 13 July.

According to a national family health survey, Kerala has the second highest number of people suffering from obesity in India after Punjab.

The 14.5% fat tax has been imposed by the new Communistled state government, which said it was aimed at making people more conscious about food choices and to curb obesity.

Finance Minister Thomas Isaac said the tax was a preventative measure, as the food habits in Kerala were changing, moving away from traditional food.

BBC said global fast food chains such as McDonald’s, Burger King, Domino’s and KFC were relatively new to Kerala; McDonald’s had seven outlets and Burger King had just launched its first outlet in the state.

AFP said most high-fat snacks and other fast-food items in India were still sold by largely unregulated street vendors, rather than branded chains.

The state government said the tax only targeted the “elite section of the society” and should get people thinking about what they ate.

AFP said while India had high rates of malnutrition, lifestylerelated health issues including diabetes and obesity were also major problems.

FSSAI proposes 5% vegetable fats in chocolate rule

T

he Food Safety and Standards Authority of India (FSSAI) has published draft amendments to the Food Safety and Standards Regulations proposing that chocolate can contain vegetable fats that are not cocoa butter so long as it does not exceed 5% of the finished product, the Indian Express reported on 7 August.

Amit Lohani, convenor of the Federation of Indian Food Importers said the new law would allow the import of well-known brands previously unavailable in India due to their vegetable oil content. The 5% is calculated after deducting the total weight of any other added edible foodstuffs, and it must not reduce the minimum contents of cocoa materials in the chocolate.

Lohani said vegetable fat helped maintain the shape and texture of chocolate while increasing the melting point, important in India’s hot climate.

He said chocolate consumption in India was around 150g-200g per person per year.

According to Candy Industry, India is one of four countries projected to have the highest chocolate market growth in the period 2015-2020.

It quoted ‘A Study of the IndoChina Chocolate Market 2016’ as saying that the domestic chocolate industry was already worth more than US$1bn and was growing at a rate of 20% annually.

The study said that nearly 70% of chocolate was consumed in urban India with a growing affinity for dark and sugarless chocolates, as well as a growing demand for premium chocolate.

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W ORLD NEW S

OFI reports from the Globoil 2016 conference on 22-23 September in Goa, India

TABLE 1: INDIA EDIBLE OIL SUPPLY/DEMAND 2015/16 AND PROJECTION 2016/17 (M TONNES)

T

otal global palm oil supplies are set to fall 2.5M tonnes for October-December 2016 compared with the same period a year ago, Thomas Mieke, Editor-in-Chief of Oil World predicted at the Globoil conference in India on 22-23 September.

He said total supplies comprised both stocks and production and the prospects of recovery of palm oil production in October following the drought effects of El Niño would be offset by very low stocks of palm oil.

“World export supplies of palm oil from October to March will not increase as physical supplies of palm oil are insufficient to satisfy the same export demands as last year.”

The world would need to rely on palm oil exports for the next six months as soyabean oil exports were expected to stagnate.

This would create difficulties for those who had not covered their edible oil requirements for November and December and could drive prices higher.

Crude palm oil prices could rally to or above 3,000 Ringitts/tonne; RBD palm oil (fob Malaysia) could reach a high of US$800/tonne in the next four to eight weeks and Argentine soyabean oil US$800-820.

However, there was no room for production losses in these estimates.

Mielke stressed that although global production of the 17 major oils and fats would rise by 10.5M tonnes from 203.7M tonnes in 2015/16 to 213.7M tonnes in 2016/17, this boost would not solve the world’s supply problems as almost half of the increase would be eaten up by reduced opening stocks.

Consumption would increase by a below average rate of 5M tonnes.

“We need to build stocks to more comfortable levels” but this would not happen in the short term to January/March next year.

And the industry needed another good season of above average production in all edible oils to reach more comfortable levels.

On world production of the major 10 oilseeds, Mielke said production had doubled in the past 20 years and currently stood at 535.2M tonnes.

Soya production had grown 62% in the past 20 years, rapeseed 11%, sunflowerseed 9%, cottonseed 7%, copra and palm kernel 4% and groundnuts 6%.

Issues in India

India accounted for just 6% of world production and in 2015, prices had fallen below production costs for many farmers.

The Indian soyabean crop was expected to recover to 9.5M tonnes this year from 7.1M tonnes last year.

However, crushing would be limited to supplying the domestic market because of the

Oil

2015/16

2016/17 +/- in 2016/17 against 2015/16

Opening stock

2.370

1.960

- 0.410

Domestic production

5.820

6.960

1.140

Total

8.190

8.920

0.730

Consumption (-)

20.620

22.150

1.340

Deficit

12.620

13.230

0.610

1.960

2.250

0.290

14.580

15.480

0.900

Closing stock (+) Import required – edible oils

Non-edible oil import may be about 0.2M tonnes TABLE 2: INDIA’S IMPORT BREAK-UP FOR 2015/16 AND 2016/17 (M TONNES) 2015/16 Oil

Oct-Sept

2016/17

Nov-Oct

Oct-Sept

Nov-Oct

Palm (edible)

8.765

8.474

9.175

9.235

Soyabean oil

4.381

4.190

4.185

4.200

Sunflowerseed oil

1.555

1.548

1.710

1.740

Rapeseed oil

0.356

0.375

0.310

0.300

15.057

14.587

15.380

15.475

Total

inability of crushers to export their soya meal.

Atul Chaturvedi, the CEO of India’s Adani Wilmar and new president of the Solvent Extractors’ Association of India, said the Indian vegetable oil industry was in the “intensive care unit”.

Imports of edible oils stood at 15M tonnes, some 70% of the country’s needs, while the refining industry was still suffering, with capacity utilisation standing at 30-35%.

The country was flooded with refined palm olein and oilseed cultivation had stagnated at 28-30M tonnes.

“The tragedy is that while the area under GM crops is not small as 11M ha are under GM cotton, we continue to defer planting of GM soya and mustard.”

Chaturvedi said he sincerely hoped that the recent clearance of GM mustard in the country would be taken up.

He added that the duty difference between imports of crude and refined oils needed to be increased to 15% from the current 7.5% to prevent the refining industry from collapsing.

Trade and price outlook

The possible election of Donald Trump as US president in the country’s November presidential elections is likely to result in a trade war between the USA and China and Mexico, which would be a disaster for US exports of soyabeans, Dorab Mistry, director of Godrej International, said.

It would, however, have a bullish effect on exports of palm oil and South American soyabeans and soya oil.

Mistry said the vegetable oil market had experienced massive turbulence in the past year, with an unprecedented drop in palm oil production of 6M tonnes in 2015/16 (October-

September) compared with 2014/15 due to the drought effects of El Niño in 2015 and poor rainfall in the first quarter of this year.

Total palm oil stocks also fell 5.5M tonnes.

“We had never seen such a dramatic drop in palm oil production.”

However, he forecast a strong recovery in palm oil production of 6.5M tonnes in the next 12 months.

Mistry also said that China would begin releasing a further 2.5M tonnes of old rapeseed oil stocks from some 6M tonnes of reserves it had been holding for 10 years. This was a factor often overlooked by analysts.

He forecast that total world supply of edible oils would increase by 11M tonnes in 2016/17 against a fall of 5.4M tonnes in 2015/16.

This would not result in an overly bearish market as the increase in supply would go towards rebuilding stocks.

Mistry gave a price outlook of Bursa Malaysia crude palm oil (CPO) futures falling from 2,600 ringgits to 2,200 ringgits within the next eight weeks, assuming that Trump is not elected; Brent crude oil prices stay at US$4050/barrel; currencies such as the ringgit stay stable against the US dollar; and CPO prices do not rising beyond 60,000 rupees on the Multi Commodity Exchange of India (MCX), as Indian consumers were price sensitive and reduced consumption when prices rose.

“If CPO futures fall to 2,200 ringgits, then soyabean oil – which is too expensive at the moment – will go to US$650 fob,” he said.

Mistry said that if La Niña, which had not made an effect as expected following El Niño, were to develop, weather problems could affect the South American soyabean crop, “and the roller coaster ride will begin once again”.

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TABLES: GGN INTERNATIONAL

Global palm oil supplies to fall 2.5M tonnes

D IARY OF EVENTS

4-7 OCTOBER 2016 World Conference on Fabric and Home Care VENUE: Shangri-La Hotel, Singapore CONTACT: AOCS Meetings Department, USA Tel: +1 217 3592344 E-mail: meetings@aocs.org Website: http://singapore.aocs.org

12-13 OCTOBER 2016 Malaysian Palm Oil Trade Fair & Seminar VENUE: Kuala Lumpur, Malaysia CONTACT: Mohd Izham Hassan, Malaysia Palm Oil Council. E-mail: izham@mpoc.org.my or kharibi@mpoc.org.my Website: www.mpoc.org.my/Palm_Oil_ Trade_Fair_and_Seminar_(POTS)_2016_ Announcement.aspx

24-25 OCTOBER 2016

14-16 NOVEMBER 2016

3rd International Conference on Rice Bran Oil VENUE: ITO International Research Centre University of Tokyo, Japan CONTACT: Secretarial of ICRBO2016 Tel: +81 3 5657 0777 E-mail: icrbo2016@jtbcom.co.jp Website: www.icrbo2016.org

Oilseed and Grain Trade Summit/Organic & Non-GMO Forum VENUE: Hyatt Regency Hotel, Minneapolis, USA CONTACT: Sule Basa HighQuest Partners, USA E-mail: sule.basa@gmail.com Website: www.oilseedandgraintrade.com or www.ongforum.org

26-27 OCTOBER 2016 Fat and Oil Industry 2016 VENUE: Bristol Hotel, Odessa, Ukraine CONTACT: APK-Inform, Ukraine Tel: +380 562 320795 E-mail: market@apk-inform.com Website: www.apk-inform.com/en/ conferences/fat-and-oil-2016/about

17-18 OCTOBER 2016

27-28 OCTOBER 2016

Biofuels Financial Conference VENUE: Hyatt Regency Hotel, Minneapolis, USA CONTACT: BBI International, USA Tel: +1 866 7468385 E-mail: service@bbiinternational.com Website: www.biofuelsfinancialconference.com

Palm Oil Latin America, 16th Practical Short Course: Advanced Oil Processing – Palm, Palm Kernel and Coconut Oil Processing and Food Applications VENUE: Hotel Estelar La Fontana, Bogotá, Colombia CONTACT: Smart Short Courses Tel: +32 51 311 274 or +1 979 216 1210 E-mail: info@smartshortcourses.com Website: www.smartshortcourses.com/ oilprocess16/index.html

17-21 OCTOBER 2016 National Renderers Association (NRA) 83rd Annual Convention VENUE: The Ritz-Carlton Amelia Island Florida USA CONTACT: NRA, USA. Tel: +1 703 6830 155 E-mail: co@martycovert.com Website: www.nationalrenderers.org

19-21 OCTOBER 2016 OFIC 2016 VENUE: Hotel Istana, Kuala Lumpur, Malaysia CONTACT: OFIC 2016 Secretariat, c/o MOSTA Malaysia. Tel: +603 7118 2062/2064 E-mail: mosta.secretariat@gmail.com Website: www.mosta.org.my

21-22 OCTOBER 2016 PORAM Annual Forum, Dinner, Golf Challenge LOCATION: One World Hotel, Bandar Utama Selangor Darul Ehsan, Malaysia CONTACT: PORAM, Malaysia Tel: +603 7492 0006 E-mail: poram@poram.org.my Website: www.poram.org.my/p/ wp-content/uploads/2014/01/PORAM-annualevent-A4-2016.pdf

For a full listing of oils and fats industry events, go to: www.ofimagazine.com

7-10 NOVEMBER 2016 19th Annual FO Lichts World Ethanol & Biofuel VENUE: Steigenberger Wiltcher’s Hotel Brussels, Belgium CONTACT: Informa Agra Customer Services, UK Tel: +44 20 3377 3658 Fax: +44 020 3377 3659 E-mail: registrations@agra-net.com Website: www.worldethanolandbiofuel.com

7-10 NOVEMBER 2016 14th Annual Roundtable Conference on Sustainable Palm Oil (RT14 2016) VENUE: Shangri-La Hotel, Bangkok, Thailand CONTACT: RSPO, Malaysia Tel: +603 2302 1500 E-mail: rt@rspo.org Website: www.rt14.rspo.org

23-25 NOVEMBER 2016 12th Indonesian Palm Oil Conference (IPOC) and 2017 Price Outlook VENUE: BICC, The Westin Resort Nusa Dua, Bali, Indonesia CONTACT: IPOC Secretariat, GAPKI, Indonesia Tel: +62 21 57943852 E-mail: info@gapkiconference.org Website: www.gapkiconference.org

1-3 DECEMBER 2016 7th FOI 2016, Fats & Oils Istanbul/FGI 2016, Feeds & Grains Istanbul VENUE: Ceylan InterContinental, Istanbul, Turkey CONTACT: Agripro, Turkey.

Tel: +90 212 236 0345 E-mail: info@fatsandoilsistanbul.com.tr info@agripro.com.tr Website: www.fatsandoilsistanbul.com.tr

29-30 DECEMBER 2016 ICBB 2016: 18th International Conference on Biofuels and Bioenergy VENUE: Paris, France CONTACT: World Academy of Science, Engineering and Technology (WASET) Website: www.waset.org/ conference/2016/12/paris/ICBB

6-8 MARCH 2017 28th Annual Palm and Laurice Oils Conference & Exhibition: Price Outlook Conference 2017/2018 (POC 2017) VENUE: Shangri-La Hotel, Kuala Lumpur, Malaysia CONTACT: POC2017 Secretariat, Malaysia Email: poc@bursamalaysia.com; Website: www.pocmalaysia.com

19-20 MAY 2017 10 NOVEMBER 2016 FOSFA Annual Dinner VENUE: Battersea Evolution, London, UK CONTACT: Gemma Hale, FOSFA, UK Tel: +44 20 7283 5511 E-mail: contact@fosfa.org Website: www.fosfa.org

OFI India 2017 VENUE: Bombay Convention and Exhibition Centre (BCEC), Mumbai, India CONTACT: Mark Winthrop-Wallace, Sales Manager, OFI, UK Tel: +44 (0) 1737 855 114 E-mail: markww@quartzltd.com Website: www.ofievents.com/india

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Deadly opportunity

India is the world’s top producer of castor oil, much valued by the oleochemicals industry because of its ricinoleic acid content. Charlotte Niemiec looks at how companies are attempting to open the market further by removing the potentially fatal toxin ‘ricin’ from the castor seed

B

eautiful but deadly, the castor oil plant – native to the southeastern Mediterranean Basin, eastern Africa and India – is today widespread throughout tropical regions. The plant grows well in temperate to tropical climates and can often become a pest. Castor oil is produced by crushing the seeds inside the pods. Seeds contain from 40% to 60% oil, which consists of triglycerides: 91% to 95% ricinoleic acid, four to five percent linoleic acid and one to two percent palmitic and stearic acid.

It is the rare fatty acid chain – ricinoleic – that makes it precious to the industry and a more valuable and expensive oil than other vegetable oils.

For example, in July 2007, Indian castor oil sold for about US$0.90/kg, whereas US soyabean, sunflower and canola oilseeds sold for around US$0.30/kg.

Currently, says Castor Oil World (COW), castor is planted on three million hectares of land and 1.5M tonnes/year of the seed is harvested. India is the world’s top producer, providing more than 60% of global yield, followed by China and Brazil.

According to COW, global castor oil production totals approximately one million tonnes/year, far below the estimated global demand of 200M tonnes, and worldwide demand is increasing three to five percent/year. This supply deficit provides enormous opportunities for those in the agricultural industry.

In recent years, with the rapid development of industrial production and advanced technology, castor oil has become more popular in numerous applications, including biodegradable lubricants, biofuels and the oleochemical industry.

CommodityOnline provides a breakdown of castor oil production worldwide. In contrast to COW’s figures, it estimates global output of castor oil to be significantly less, at around 500,000550,000 tonnes, with India contributing more than 50%. It estimates global trade in castor oil to be over 300,000 tonnes/year on average.

As the leading producer and exporter, India plays a pivotal role in the global castor oil sector. Indian production ranges between 250,000 tonnes/year to 350,000 tonnes/year. Indian castor is credited with a 48% oil content, out of which 42% can be extracted. The average domestic consumption of the oil in India is 100,000 tonnes/year. On average, soap makers account for 25,000 tonnes while paint and allied sectors consume 35,000 tonnes of India’s produce. The country exports two grades of castor oil – normal castor oil and special grade castor oil.

Gujarat is the leading producer in the country, accounting for nearly 85% of the output, followed

by Andhra Pradesh and Rajasthan.

Castor oil is colourless to very pale yellow, with a boiling point of 313ºC. According to the study v

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it is only marginally suitable for that purpose. A simple, chemical modification to the oil would make it much more suitable. Such a modification would be expensive if it had to be done to tonnes of castor oil, but that cost could be eliminated if the processing happened in the plant itself.”

High value-added applications v

‘Biodiesel from Castor Oil: a Promising Fuel for Cold Weather’, conducted by Carmen Leonor Barajas Forero in the Department of Hydraulics, Fluids and Thermal Sciences at Francisco de Paula Santander University, Colombia, castor oil is widely used in the industrial field because of its many properties. In the textile industry, castor oil is used for moisturising and removal of grease in fabrics, and for the manufacturing of waterproof fabrics.

In the steel industry, it is used in cutting oils and lubricants for steel lamination at high temperatures and it is also used in other liquids that are necessary for steel work. The automotive industry uses castor oil for the production of high performance motor oil and braking fluids.

Moreover, it is also employed as a softener in the tanning industry and in the production of fluids for hydraulic devices, artificial leather, varnish, paint, linoleum, insulators, powder, fatty acids, enzymes; as a moisturiser for stationary and insecticides; as a raw material for the fabrication of plastics; and as an over-the-counter laxative.

Nevertheless, castor oil has one significant drawback. The castor seed contains ricin, a toxic protein. Peter Carrington, a toxic plant specialist at Michigan State University, Michigan, USA who spoke to news website www.wilx.com in April 2013, says: “A volume roughly the size of a grain of table salt would be a fatal dose for an adult …

[It’s] something like 1,000 times more toxic than cyanide.” Symptoms of ricin poisoning include nausea, diarrhoea, tachycardia, hypotension and seizures persisting for up to a week.

This toxicity proves a problem for harvesters, as it causes permanent nerve damage. Workers in India, Brazil and China suffer harmful side effects, which has spurred the search for alternatives and research into genetically modifying the plant to prevent the synthesis of ricin.

However, heating during the oil extraction process denatures and inactivates the ricin, making the oil safe for human consumption. The USA’s Food and Drug Administration (FDA) has categorised castor oil as ‘generally recognised as safe and effective’ for human use as a laxative.

Developing a non-toxic bean One company currently researching a non-toxic castor bean is Nova Synthetix, established in 2012 with this purpose in mind. In early 2014, the company won the Biotech Center’s “Ag Biotech Entrepreneurial Showcase”, as reported in the Charlotte Observer. The report claims that castor oil is a US$400M market, commanding nearly triple the price of other oilseeds; worldwide consumption of the oil totals upwards of one billion pounds/year.

A non-toxic variety of the castor plant would open up the market in the USA and save the country US$50M in import costs from India. Biochemist Donald Walters, who established Nova Synthetix,

‘A volume roughly the size of a grain of table salt would be a fatal dose for an adult’ explains that US castor oil production ceased in the 1970s because “farmers would incur too much liability in producing a toxic bean.” He notes that, if Nova Synthetix brought a ricin-free castor plant to market, it “could be the foundation for a resurgent, US based castor industry”.

The technology to do this is provided by Precision Biosciences, a Durham company. The system, called a Directed Nuclease Editor, enables the modification of genes in nearly any organism.

According to the Charlotte Observer report, it is not considered genetically modified organism technology because no foreign DNA is introduced into the host plant. The technology minimises the risk of transferring non-desirable traits into the host plant along with the trait of interest.

Because of this, researchers can bypass regulations that apply to GMOs, producing tremendous cost savings. “It costs upwards of US$10M to put a GMO on the market right now – we avoid all that by using this technology,” Walters says.

The experimental plants are being grown and tested in the laboratory of Dr Linda HanleyBowdoin, a plant virologist at North Carolina State University. Walters expected a prototype plant by the end of 2014.

The report states: “Nova Synthetix will eventually produce two generations of products. The first will be ricin-free castor beans for use in agriculture. The second, more exciting possibility, is to use Precision Biosciences’ technology to engineer the castor plant to produce so-called “designer oils” … For example, while castor oil can be used as a biofuel,

Other companies focusing on the potential of castor oil include Arkema, BASF, DuPont, Vertellus, Alnor Oil and Gustav Heess. France-based Arkema has been working with castor derivatives since the early 1940s, according to an ICIS Chemical Business article published in April 2009, titled ‘Cracking Castor’s Code’. The article explains that Arkema first created its 100% castor oil-based ‘Rilsan’ polyamide 11 (PA11) to make synthetic fibres as an alternative to another oil-based polyamide: nylon. Rilsan is used today in high value-added applications such as fuel lines in cars, offshore pipelines, gas distribution piping systems and in traditional markets such as electronics, sports equipment, furniture and automobile components.

The company additionally produces ‘Rilsan HT’, a flexible, high-temperature resin that is a polymer blend of PA11 and polyphthalamide; ‘Pebas Rnew’, a thermoplastic polyamide elastomer that can contain between 20% and 90% castor derivative depending on applications; ‘Platamid Rnew’, a 100% bio-based hot melt adhesive; and ‘Rilsan Clear Rnew’, a transparent polyamide that contains 54% castor derivatives.

In 2007, the leading German chemicals company BASF – which had sales of €72.1bn in 2012 – reintroduced a castor oil-based engineering polymer that it developed, produced and marketed 50 years before, says ICIS. The article quotes Matthais Scheibitz, product manager for ‘Ultramid’ – a polyamide 6.10, comprising around 60% sebacic acid, a castor derivative – at BASF: “Ultramid Balance is well received in the market not only because it is based on renewable materials but [also] because it has a superior performance compared to the standard polyamides PA6 and PA66 ... It offers a higher dimensional stability and better resistivity against numerous chemicals.”

BASF also markets ‘Lupranol Balance’ a polyol made up of 31% castor oil by weight. BASF’s European polyurethane subsidiary, Elastogran, produces it mostly for the synthesis of soft PU foams used in mattresses.

In October 2013, BASF launched its ‘Ultramid S Balance’ for monofilaments, a high performance polyamide 6.10 with unique mechanical properties and partly bio-based raw materials. The new version was launched because “the demand for bio-based raw materials is increasing worldwide”, according to Hermann Althoff, senior vice president of the Global Polyamide and Intermediates Business Unit.

Vertellus’s castor development focuses on all potential applications, including industrial, personal care and urethane markets, the ICIS report claims. Larry Slovin, previously the president of Vertellus, says: “Vertellus is probably one of the few chemical companies worldwide dedicated to doing continuous R&D work in castor chemistry.”

In late 2006, Vertellus expanded its Greensboro, North Carolina, USA facility to ramp up production capacity, as well as R&D for castor oil derivatives.w Charlotte Niemiec is OFI’s former assistant editor

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EDIB LE OILS

R

ice is a staple for many diets across the globe. According to the Food and Agriculture Organization (FAO), rice is the second largest crop grown in the world, after corn (maize).

An April 2013 Inform article, ‘Rice bran oil: nature’s healthful oil’ states that, in 2009, total world production of rice was 455.7M tonnes. FAO figures from 2011 show that the top five producers of rice are China, India, Indonesia, Bangladesh and Vietnam, which produced 202.6M tonnes, 155.7M tonnes, 65.7M tonnes, 50.6M tonnes and 42.3M tonnes, respectively.

To produce white rice – the rice most commonly sold – the brown, paddy rice (rough rice) is milled and polished. The husk that is polished off is called rice bran and is a good source of oil; the article states that rice bran contains 15% to 20% oil, depending on the cultivar, agricultural practice and extent of polishing.

Despite their huge rice production levels, not all the growing countries listed above produce rice bran oil (RBO). India produces the most, at 820,000 tonnes/year, but only 19% of RBO’s potential is realised, even though rice is grown in many countries.

RBO has not enjoyed the popularity of other edible oils. According to Yi-Hsu Ju and Shaik Ramjan Vali, the authors of ‘Rice bran oil as a potential resource for biodiesel: a review’, the wax in RBO is difficult to remove completely, which gives the oil a haze, especially in colder climates.

The authors explain that “this, along with the darker colour of the oil, has been responsible for the poor acceptance of RBO by consumers”.

They continue: “Another major drawback in producing edible grade RBO from crude oil is its high [free fatty acid (FFA)] content. Freshly milled rice bran has a short shelf life because of the decomposition of lipids into FFA by lipases, making it less economical to process into edible oil for human consumption.”

RBO is not a common source of edible oil compared to other traditional cereal or seed sources such as corn, cotton, sunflower or soyabean, states the report.

It is also not produced in large enough amounts to be considered a significant oil. If all the rice bran in the world was harnessed for oil extraction, the estimated potential yield of crude RBO would only be about eight million tonnes.

Rice bran’s liquid gold A ‘balanced and versatile’ cooking oil, a beneficial cosmetics ingredient and an ‘economical and affordable’ biofuel, rice bran oil (RBO) has a lot to offer. India is the world’s leading producer of RBO. Charlotte Niemiec examines the growing popularity of this niche oil A heart healthy oil Nevertheless, RBO has enjoyed some popularity as a heart healthy oil. It contains 47% monounsaturated fats, 33% polyunsaturated fats and 20% saturated fats. It is composed of 38.4% oleic acid, 34.4% linoleic acid, 21.5% palmitic acid, 2.9% stearic acid, 2.2% α-linoleic acid and 0.6% myristic acid.

The oil has a high smoke point of 232ºC, making it suitable for high temperature cooking methods such as stir frying and deep frying, and it has a mild flavour. It is popular as a cooking oil in Asian countries such as Japan and China.

While it is used mainly for frying and cooking processes, it is also used in the preparation of nutraceutical products and there have been a number of studies into its potential as a biofuel.

The American Heart Association (AHA) has claimed RBO is the most versatile and balanced cooking oil available. A 19 September 2012 press release from the AHA revealed that a new study into RBO found it helped lower blood pressure in high blood pressure sufferers. The study involved a group of 300 people prescribed a common blood pressure medication. Those who took the medicine in conjunction with a blend of sesame and rice bran oil had more than twice the drop in blood pressure compared to either the group taking medication alone, or those only supplementing their diet with the oil blend.

Dr Devarajan Sanker, a research scientist at the Department of Cardiovascular Disease at Fukuoka University in Chikushino, Japan, says: “Additionally, [RBO] may reduce heart disease risk in other ways, including being a substitute for less healthy

oils and fats in the diet.”

Studies also suggest the RBO component ‘gamma oryzanol’ is effective in relieving hot flushes and other symptoms of menopause, while other potential benefits include modulation of pituitary secretion, inhibition of gastric acid selection, antioxidant action and inhibition of platelet aggregation. It has also showed some success in managing high fat-induced hyperlipidemia.

Finally, the biodiesel review report claims its phytic acid content of 8.7% is comparatively higher than that in other bran and seeds. Phytic acid exhibits strong anticancer activity and its hexasulphate content is claimed to inhibit the proliferation of Human Immunodeficiency Virus (HIV).

Historically, says Henk Hoogenkamp, research technician at the Nijmegen Centre for Molecular Life Science, rice bran was considered a waste product with little value because active enzymes caused rapid lipid degradation.

“However, the introduction of innovative lipase deactivation resulted in lipid stabilisation, which has allowed rice bran to move up into a higher hierarchy of the food chain,” he says.

The Inform article explains that RBO was first extracted with food-grade hexane in India in the 1960s. It says oil extraction should be done on fresh bran or on the bran obtained soon after milling, to prevent the lipase action on bran oil and to ensure the quality of the extracted oil.

The article continues: “Refining of RBO is accomplished by two methods, one by chemical reaction with alkali, known as alkali refining/ chemical refining; the other by steam strippingvacuum distillation of FFA, known as physical refining. In addition to removing FFA,

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EDIB LE OILS

both processes involve the steps of degumming, dewaxing and bleaching. Chemical refining involves the additional step of deodorisation.”

Use of RBO in health and cosmetics Currently, several studies are being conducted around the world for RBO’s use in cosmetics.

According to rice reporting agency, Oryza, studies have shown that RBO has several beneficial properties for skin and hair.

The Solvent Extractors Association (SEA) of India states that RBO can be effective in treating itching of the skin and can be used as an antidandruff agent in the production of cosmetics.

The association explains: “While the chemical ‘tocopherol’ that is found in RBO is an antioxidant belonging to the vitamin E group – which is good for the skin – another chemical, ‘squalene’ is beneficial in maintaining the tone of the skin.”

Furthermore, cosmeticsdesign-europe.com, which provides daily news on the cosmetics industry and manufacturers in Europe, reports that a Vietnamese scientist had developed a method to make gamma oryzanol from rice bran, that can then be used in cosmetics and anti-ageing supplements.

Gamma oryzanol is a complex of ferulic acid esters extracted from rice bran oil and, as such, it has biological properties similar to those of ferulic acid, which is a potent antioxidant.

According to the news report, it has been used widely in manufacturing medicine, cosmetics and anti-ageing supplements for women, as well as being used as supplements to help develop muscles in the body and increase strength.

In addition, Oryza reports that a study is attempting to tap the potential of antioxidants present in rice bran to help fight colon and other kinds of cancer.

Biofuel potential As a potential biofuel, RBO has been largely neglected. Nevertheless, several studies have been carried out as to its potential, and biodieseltechnologiesindia.com explains that RBO is a “nonconventional, inexpensive and low-grade vegetable oil. If the by-products are derived from crude rice bran oil and the resultant oil is used as a feedstock for biodiesel, the resulting biodiesel

could be quite economical and affordable.”

The report claims that crude RBO is a rich source of high value-added byproduct and, therefore, use of RBO as a raw material for the production of biodiesel not only makes the process economical but also generates value-added bioactive components.

Rice bran oil manufacturers Dedicated manufacturers of rice bran oil are quick to point out the oil’s health benefits.

RiceBran technologies focuses on the processing and distribution of stabilised rice bran and other proprietary, rice branbased ingredients and formulations.

The US company, headquartered in Phoenix, Arizona, has rice bran processing facilities in both north and south America.

Its listed s t o r a g e capacities are 5,000 tonnes in Dillon, Montana; 30,000 tonnes in Mermentau, Los Angeles; and 10,000 tonnes in West Sacramento, California.

It has an additional plant in Arbuckle, California, but the company has not revealed its capacity.

King Rice Bran Oil, produced by the Thai Edible

Oil Company, is one of the largest rice bran oil extraction plants in the world. In 1988, Thai Ruam Jai Vegetable Oil Co Ltd was founded to help the Thai Edible Oil Co expand production capacity for rice bran oil. In 2011, the latter expanded its extraction capacity to 200,000 tonnes/year of rice bran.

Other, smaller manufacturers include Surin Bran Oil Co Ltd, established in 1990 and located in Thailand. It has a 300 tonnes/day storage capacity and its rice bran oil refining plant handles 30 tonnes/day. The solvent plant of Indian company Shivangi Oils produces 200 tonnes/year of rice bran and 50 tonnes/day of RBO for refining.

Its additional refinery unit, commissioned in 2008, has a capacity of 50 tonnes/day. w Charlotte Niemiec is OFI’s former assistant editor RICE BRAN OIL HAS ANTIOXIDANT PROPERTIES AND IS CLAIMED TO HELP LOWER BLOOD PRESSURE (PHOTO: PIKKYSTOCK/ DREAMSTIME.COM)

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EDIB LE OILS

IMAGE: AIRBORNE77 / ADOBE STOCK

Fighting malnutrition in India

VEGETABE OIL IS ONE OF THE MOST EFFECTIVE CARRIERS OF VITAMINS SUCH AS A, D AND E AS THESE ARE OIL SOLUBLE

One in three of the world’s malnourished children lives in India. Fortification of vegetable oil is an effective and cheap solution to address this problem.

Ashwin Raj R writes

I

ndia is one of the fastest growing economies in the world with immense potential to grow even further. The World Bank has projected India’s GDP growth to be 7.9% in 2018, the fastest among developing nations followed

by Bangladesh at 6.8% and China at 6.5%.

India is also expected to overtake other developing economies in 2016 and 2017 due to the rise in its middle class population and their increasing disposable incomes.

With close to 360M people between the ages of 10 and 24, India is home to the largest proportion of young people in the world. The rapid rate of urbanisation, coupled with an increasing working population, further substantiates the potential for growth in the subcontinent. However, like other growing economies, it faces several challenges on its road to success. One of the most critical challenges faced by the nation from a nutritional perspective is malnutrition.

Health and food Health and food have a direct correlation and are significant factors that control life expectancy.

Across the globe, malnutrition kills about 3M children below five and affects 160M children to the point that it results in stunted growth.

However the situation in India is particularly grave as one in three of the world’s malnourished children lives in the country.

According to the Rapid Survey on Children (RSOC) Factsheet 2014, in India about 40% of the children under five are moderately or severely underweight (see Figure 1, following page); almost 75% of women and children are micronutrient deficient; and about 15% of children are acutely malnourished.

Other research studies suggest n The prevalence of Bitot’s spot, a test that signals the presence of Vitamin A deficiency (VAD), was found to be around the 0.8% mark among pre-school children in India, significantly higher than the figures recommended by the World Health Organization (WHO) that has suggested less than 0.5% n Blood VAD indicates a figure of 61% (<20µg/ dL) and severe VAD 21.5% (<10 20µg/dL), against the recommended 20% n Vitamin D deficiency is yet another alarming

condition that threatens the Indian population with the prevalence mounting up to 70% among adults.

These figures raise concern over the current state of vitamin deficiencies in India and there is an acute need to address the situation. Experts around the globe including nutritionists, scientists and representatives of NGOs such as the Global Alliance for Improved Nutrition (GAIN) have collectively agreed that fortification of food and beverages is one of the most effective strategies to face the challenge of malnutrition and vitamin deficiency.

Oil, rather than other options such as flour or milk, is considered to be one of the most effective carriers of vitamins such as A, D and E as these vitamins are oil soluble and offer a cheaper and efficacious solution.

Edible oils in India The demand for edible oils in India has witnessed unprecedented growth rates in the past decade, recording a CAGR of 6% (2004/05 – 2014/15). The growth in the market is caused by the surge in a middle class population with increased disposable income and a preference towards fried and fatty food. The demand is projected to increase even further due to the constant increase in population

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EDIB LE OILS

and the growth in the fast food sector in India.

The total imports of vegetable oil in India were 140 lakh (14M) tonnes in 2014-15 increasing at an encouraging CAGR of 10% from the period 2003-2015, according to a press statement by Solvent Extractors’ Association of India. The Indian edible oils market is highly driven by imports – 60-70% of all oils are imported.

Palm oil continues to dominate, contributing close to 50% of the total oil demand followed by soyabean oil, mustardseed oil and sunflowerseed oil. The low cost of palm oil is the prime reason for its wide use in the market, and its ability to blend effectively with other oils is also a major driving factor. Soya and mustard/rapeseed oil consumption is increasing at a steady pace, especially in the western and northern parts of India. Rice bran oil is an up and coming oil in the country while the consumption of groundnut oil is gradually fading away.

Fortification with premixes Crude vegetable oils naturally contain certain antioxidants and nutrients such as vitamin A and E. Almost all crude oils undergo a processing stage to eliminate the fetid smell and raw taste of the oil.

However, most nutrients are lost during the process.

Fortification is an extremely effective step taken to revive this condition. It is the process of adding blended vitamins (premix) to the refined oil.

Premix is a blend of these vitamins that could be used to fortify the refined oil that has lost its nutrients during the refining process. The process of fortification (addition of premix) is carried out after the final step of deodorisation so as to minimise the loss of vitamins due to heat.

In order to ensure uniform mixing of these vitamins in the oil, the intended amount of vitamins is measured and added to a small portion of warm oil (40oC – 50oC), which is then added to the bulk of the oil prior to homogenisation. Along with the vitamins, other antioxidants such as BHA, BHT, ascorbyl palmitate and Vitamin E may also

‘Experts around the globe...have collectively agreed that fortification of food and beverages is one of the most effective strategies to face the challenge of malnutrition and vitamin deficiency’ be added, as per the governmental regulations governing that region.

Currently, both customers and consumers have certain misconceptions about fortification.

Table 1 (below, right) shows a few of the myths, as well as the facts behind them.

It is therefore evident that the concept of fortification adds more value to the oil and also helps fight malnutrition on a large scale.

IMAGE: CPAUSCHERT / ADOBE STOCK

FIGURE 1: PERCENTAGE OF UNDERWEIGHT CHILDREN UNDER 5 IN INDIA

The state of oil fortification in India Despite the advantages and positive effects of fortification, the overall quantity of fortified oils in the country remains surprisingly low. It stands at just 10% of the total branded edible oils in the country. The main reason for this is the presence of loose/unbranded oils in the country, which make up almost 40-50% of the entire edible oils market.

This is a potential threat in furthering fortification, as most loose oil producers sell used oils back to the market. Apart from posing serious health issues, it also negates the chance of fortifying such types of oil, mainly due to cost. The other reason is that consumers are unaware of the advantages of fortified oils.

The future There is enormous potential to educate consumers about the benefits of consuming fortified oils. An increasing economy, rising disposable income of the working population and elevated levels of vitamin deficiencies are expected to drive the fortified oils market in India. Most states, such as Gujarat, have mandated the fortification of oil and other states such as Maharashtra, Madhya Pradesh and Rajasthan have been in the forefront in supporting the programme.

International organisations such as GAIN have been very involved in the fortification of food with the support of allied organisations such as the Indian Institute of Health Management Research (IIHMR) that helps from a R&D perspective. It is only through the combined efforts of the government, NGOs, oil manufacturers, regulatory bodies, R&D units and premix manufacturers that the concept of fortification could reach the masses and help bring an end to the problem of malnutrition in India. w Ashwin Raj R is manager of business development at Hexagon Nutrition, India www.hexagonnutrition.com

TABLE 1: MYTHS VS FACTS OF EDIBLE OIL FORTIFICATION Myth

Fact

Fortification adds The process of fortifying oil with vitamins A, D and significant cost to the E costs INR 0.08-0.15/kg of oil (US$0.001-0.002). production process The process is neither complex nor requires any special equipment. The premix could be added in the same way that antioxidants are added.

The taste and colour of oil changes

The fortification process does not impact the taste of the oil. Research proves that food such as fried potatoes, soup, wheat tortillas and fried meat cooked in soyabean oil have been accepted by consumers who did not distinguish the taste of food cooked in fortified and non-fortified oil.

The vitamins lose stability while cooking

The vitamins do not lose stability during the cooking process. Normally they are viable for the first three times after which they gradually start to wear out, which is natural. It also depends on factors such as the quality of the refined oil and packing. The shelf life of fortified oil is five months with adequate preservation techniques.

35% or more 30-35% 25-30% 20-25% Less than 20%

PERCENTAGE OF TOTAL CHILDREN IN EACH AREA WHOSE WEIGHT IS AT LEAST TWO STANDARD DEVIATIONS BELOW AVERAGE. (SOURCE: RAPID SURVEY ON CHILDREN UNICEF AND GOVERNMENT OF INDIA 2013-2014. VIA THE ECONOMIST)

By: Hexagon Nutrition, India

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Alarm over rising imports A

s the world’s largest edible oil importer, India urgently needs to address its stagnating oilseed production if it wants to avoid an ever increasing dependence on imports.

India’s demand for edible oils is some 21M tonnes/year and it meets this with domestic production of some 7M tonnes and imports of 14M tonnes, valued at over Rs65,000 crores (US$12bn).

With expected population and per capita income growth, its demand in 10 years is set to hit 30M tonnes.

“Oilseed production is more or less stagnating,” says Sushil Goenka, director of 3F Industries Ltd. “If nothing is done, imports will rise to 75-80% of our requirements.”

His view is echoed by Dinesh Shahra, managing director of Ruchi Soya Industries Ltd. “The import of edible oils has risen to alarming levels – 65% of our requirements – and we can’t afford to let this continue. No country should rely on such large imports for food.”

Large economy India itself is a US$2tr economy, according to Atul Chaturvedi, CEO, agri business, at Adani Wilmar.

“In purchasing power parity, it’s actually a US$5tr economy.”

Its GDP is growing at more than 7% but its agriculture sector is struggling at sub 2% growth and contributing less than 15% to GDP. “Collapsing farm incomes are leading to upheavals in the rural economy, compounded by the fact that 60% of the population depends on agriculture. Tragic farmer suicides are common.”

“Minimum support price-driven production has ensured India is self-sufficient in basic foods like wheat and rice, along with sugar. In all these commodities, except rice, we have a surplus but are not competitive in world markets due to high

PHOTO: EYEGELB/DOLLARPHOTOCLUB

F OCUS ON INDIA

India is projected to require some 30M tonnes of edible oils in 10 years’ time. Already the world’s largest vegetable oil importer, what can the country do to promote its domestic oilseed and processing sector? Serena Lim writes domestic values.

“Oilseeds and pulses are the biggest sufferers and the period between 1995 and 2015 should be considered the lost decades for these commodities.

There is practically no growth in oilseed and only marginal increase in pulses.”

India’s oil and oilseed turnover is US$25bn and import-export turnover is US$13bn, providing employment to over one million people, says Pravin Lunkad, president of the Solvent Extractors’ Association of India (SEA).

Oilseeds production has stagnated at around 2830M tonnes with productivity of 1,000-1,100kg/ha.

The rise of imports In the late 1990s, India opened up edible oil imports under open general license and its total consumption stood at around 10.5M tonnes, of which the imported component was about 4.5M tonnes. “With rising income levels and changing food habits coupled with competitively priced palm oils, demand skyrocketed and currently we are consuming almost 19-20M tonnes of oil.

“Out of this, the imports are almost 13.75M tonnes,” Lunkad says. “About 70% of our requirement is met by imports which are growing at almost one million tonnes/year valued at around US$12bn.”

According to Dorab Mistry, director of Godrej International, India’s edible oil imports have soared by almost 50% in the last five years (see Table 1, following page). Of these imports, palm oil tonnages have increased by 25% while soya oil has recorded

an increase of over 300%. “Soya oil imports will take market share from every other oil because soya is so attractively priced.”

Consumer trends in oil and meal Going forward, Atul Chaturvedi says loose oil sales will gradually cease to exist and packed and branded oils will keep increasing.

“More and more oils may get launched on the health platform. Groundnut and mustard oil will price itself out. Groundnut will become a dry fruit and mustard oil will be for connoisseurs and die hard Bengalis who can afford it. Rice bran oil may gain in popularity with health conscious consumers and blended oils may start getting marketed officially.”

Food safety issues will also become more and more important, with a more proactive regulatory regime in future.

“The Indian vegetable oil industry would be well advised to take food safety issues seriously or their very existence could be jeopardised.”

Along with growing edible oil imports, imports of corn and soya meal are also expected to rise.

“Poultry is the real sunrise sector in India with chicken and egg consumption growing with changing food habits,” says Chaturvedi.

“Youngsters prefer more animal proteins in their diets. We feel the poultry sector is growing at 10% and is poised to grow at 15% in the next decade.”

Even at a conservative 12% growth, this sector would require huge quantities in feed by 2025 of 33.67M tonnes of corn meal (the current consumption is 9.68M tonnes) and 13M tonnes

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F OCUS ON INDIA

Tackling the oilseed deficit In order to tackle India’s domestic woes, various solutions have been proposed including increasing its cultivated oilseed area, promoting oil palm cultivation, introducing minimum support prices for oilseed farmers and increasing import duties on edible oils to support the domestic industry.

Goenka says the problem with increasing cultivated area is that land is finite, with food, fibre, fuel, fodder and factories all competing for its use.

Oil palm cultivation also needs corporate backing to take off, he says.

Pravin Lunkad says oil palm plantations yield up to four tonnes/ha of oil compared to 400kg/ ha in high oil content oilseeds like groundnut and mustard.

Besides the state of Goa, the governments of India’s north-eastern states and Maharashtra have also been encouraging oil palm plantations and some plantations have been started up in Mizoram, Assam and Arunacha Pardeesh states.

“Yet this is a large scope to do a lot more by the state governments and the industry,” Lunkad says.

States which have the right agro-climatic conditions should provide land to the industry on long-term lease or sale, he adds.

Dorab Mistry believes that while oil palm cultivation must be encouraged and expanded, it can never be undertaken on such a big scale.

“The solution to India’s oilseed deficit lies in three factors – better planting material, the ability to lease land for contract farming and, above all, a switch from wheat to rapeseed in the granary belt of Punjab and Haryana.

“The switch must be enabled by making rapeseed

Supporting the domestic industry The oils and fats sector itself has been lobbying the government to increase the import duty on crude and refined oils to support its domestic industry.

Edible oil prices have fallen by about 20% in the past year, says Lunkad. “This has badly affected the local market price of oilseeds and farmers are reluctant to offer their oilseeds at the prevailing price and are discouraged from planting oilseeds.”

The SEA has urged the government to increase the import duty on crude edible oils from 7.5% to 25% and on refined vegetable oils from 15% to 45% to provide a 20% differential to support oilseed farmers and the domestic refining industry, which is languishing at 30% capacity utilisation.

The government raised the import duty in September by 5% on both crude and refined oils.

“This is too little to be of benefit to farmers and as there is no increase in the duty difference, large

Learn about the Indian oils and fats market Come to OFI India 19-20 May 2017 www.ofievents.com/india imports of refined vegetable oils will continue.”

Mistry says it is only a matter of time before import duties on crude and refined oils in India are revised upward or the Indian rupee is devalued to help the country become more competitive.

“India cannot compete when all its competitors have devalued their currencies by 20-40%.

“A lower rupee and a stronger economy can be achieved by lowering domestic interest rates and that is what India needs to do aggressively.”

The future scenario India’s consumption growth is pegged at 5%/ year and the country is expected to be consuming around 34M tonnes of edible oil by 2025.

“The import requirement of oils would balloon to 25M tonnes and domestic availability will only be 9M tonnes at the current rate of growth,” says Chaturvedi. The country’s vegetable oil imports bill may rise to USD$25bn.

“However part of this oil may come in the form of oilseed and not oil alone. Oilseed imports look a distinct possibility in the future.

“With soya and other oilseed crops going nowhere and India requiring both oil and meal, India is going the China way,” he says.

“Port-based crush plants could become a reality.

Canola imports on the west coast and sunflower and soyabeans down south is a distinct possibility.

“Corn import looks inevitable in the future for the livestock sector.

“Whether we like it or not, volatility will remain the order of the day in the next decade.

Be it exchange rate, be it commodity prices, be it employee expectation, be it employee attrition, be it consumer expectations, be it regulatory expectation or be it government expectation and responses. Only companies and organisations which are nimble footed and adaptable will survive and thrive,” Chaturvedi concludes. w

TABLE 1: MARKET SHARE OF INDIAN EDIBLE OIL IMPORTS (‘000 TONNES) 2015-16

2014-15

2013-14

2011-12

Soyabean oil

3,550

3,010

1,951

1,080

Palm oil

9,600

8,710

7,960

7,670

Sunflower oil

1,400

1,510

1,510

1,140

Lauric oils

300

250

220

200

Others

250

300

200

100

15,100

14,100

11,818

10,200

Total

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TABLE: DORAB MISTRY/GLOBOIL 2015

of soya meal against a current consumption of 4M tonnes.

“This again is a scary scenario as domestic availability would not keep pace with this increase.”

cultivation remunerative and attractive – if necessary by import duties and even cash transfers.

To my mind, that is the easiest way to reduce India’s oilseed deficit.”

Goenka agrees that improving oilseed productivity is India’s best solution. “India’s yields are half of world averages or a third compared with the best in the world.”

Its soyabean yield, for example, is 47% of the world average and its cottonseed yield is 56% of the world average.

Along with good planting material, water and fertiliser management and good agronomic practices, the oilseed industry must also tackle the lack of communication between its players, research, farmers and the government, Goenka says. It should also feature model farms in selected areas around the country to showcase good practice to farmers.

Pravin Lunkad says an all out effort has to be made to increase productivity of oilseeds in the country. “It needs policy change by the states and the central governments; use of new releases and certified planting materials; a change in the mindset of the farmers to cooperatively grow oilseeds with the support of contract farming from the user industry.”

For some, GM crops also offer the chance to improve oilseed productivity.

“The debate on GM has been going on for more than two decades and the government may bite the bullet in the next decade,” says Atul Chaturvedi.

“India currently has more than 11M ha of land under GM, much more than China. The tragedy is that all this land is under cotton. In future, this may get extended to corn and oilseeds as well.”

F OCUS ON INDIA

A global player: past and present

India is a net importer of edible oil and plays a vital role in the global oils and fats marketplace.

Charlotte Niemiec provides a round-up

A

TABLE 1: CONSUMPTION OF EDIBLE OILS IN OUT-OF-HOME CATEGORIES Category

OHC Share

Food outlets

SOURCE: GGN INTERNATIONAL

Fried food

Non-edible uses

Share in category OHC share ml T 46%

19.3%

1.35

Restaurants/canteen

32%

13.4%

0.94

Banquets/caterers

22%

9.3%

0.65

Namkeen/savories

70%

18.1%

1.27

Others

30%

7.9%

0.55

Bakery products*

60%

13.1%

0.92

Others**

40%

8.9%

0.62

Hair oil

55%

5.4%

0.38

Others***

45%

4.6%

0.32

22% 10% 100%

Sub-category

2.94 Snack shop/hawkers

26%

Non-fried food

Total

42%

ml T

7.00

* OUT OF WHICH 50% IS BISCUIT **CONFECTIONARY, PICKLES, TABLE MARGARINE AND MAYONNAISE, DESSERTS, ICE CREAM, DAIRY *** SOUP, COSMETICS, PAINTS

7.00

country struggling for self-sufficiency in oilseed production but hugely reliant on imports, India has enormous influence on the global oils and fats industry. As its population grows and becomes wealthier, edible oil consumption is rising and imports are growing.

Surprisingly, India has the highest percentage of arable land in the world – 57% versus a 16% average elsewhere – according to Dr Davish Jain, managing director of Prestige Group of Industries, Indore, India, who submitted an article on the subject to All About Feed in July 2011.

Nevertheless, India’s land is not being exploited for oilseeds and the country remains dependent on other markets.

According to research company GGN International, in the late 1980s and early 1990s, self-sufficiency in vegetable oils production was high on India’s list of priorities.

However, trade reforms in the mid-1990s, followed by meagre growth in domestic oilseed production, fuelled the resurgence of imports to keep up with India’s growing requirements.

Historically, government price support programmes and policies have favoured crops that compete with oilseeds, which has resulted in a waning oilseed crop production and stagnant yields.

Before 1994, edible oil was imported through v

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v India’s State Trading Corporation (STC), which imported palm oil, soyabean oil and rapeseed oil under the Public Distribution Scheme (PDS) and distributed it to the vanaspati (hydrogenated fat) industry.

In 1994, however, the import of refined/ bleached/deodorised (RBD) palm olein was placed under Open General Licence (OGL) and import of all other edible oils met the same fate in March 1995. From then on, India’s import of edible oils increased rapidly, providing little incentive for farmers to produce domestic oilseeds.

Additionally, Jain notes that “very small and marginal land holdings, low penetration of technology, dependence on monsoon rains for almost 58% of the arable land and non-availability of hybrid/certified seed” hinders the domestic industry further. The supply chain, he says, is also very fragmented, which prevents farm produce from quickly and cheaply reaching the market. “As a result, the farmer is able to realise only 30-35% of the final price paid by the customer, whereas elsewhere in the world, the farmer realises 60-65%.

This acts as a substantial deterrent for farmers to invest in farm inputs.”

India has now become the world’s largest importer of edible oils and is likely to remain so in the foreseeable future, according to GGN International.

The country imports some 14M tonnes/year of edible oil, against domestic production of 7-8M tonnes/year, and consumes 19-20M tonnes of edible oil with per capita consumption standing at around

14-15kg. Its dependence on imports increased from 44% in 2001/02 to 60% in 2013/14, while per capita consumption rose from 4kg in 1973 to 14.40kg in 2013/14. This rapid growth in consumption has resulted from increased incomes, a rising urban population, supply of oils from the government at a subsidised rate and an increase in out-of-home consumption.

Edible oil preferences Currently, India produces around 37M tonnes of oilseeds, including soyabeans, rapeseed, mustard seed, peanuts, sunflowerseed, cottonseed and copra. It also produces other oilseeds such as castor, sesame, safflower and niger seed. In terms of volume, palm oil, soyabean oil and mustard/ rapeseed oil are the three largest consumed edible oils in India, with respective shares of 46%, 16% and 14% of total oil consumption in 2010, according to data from the Indian Information Credit Rating Agency (ICRA).

Palm oil’s food use consumption is expected to rise to 9.2M tonnes in 2014/15, against 3.2M tonnes for soyabean oil and 2.6M tonnes for rapeseed oil. However, with its widespread area and population, regional preferences exist for edible oil within India. Coconut, peanut and sunflower oils are popular in south India; peanut and

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Refining, storage and logistics Jain notes that, in the 1990s, solvent extraction and refining plants in India were capable of producing 500 tonnes/day for crush and 250 tonnes/day for refining.

However: “At the close of the 20th century, two new developments took place – the entry of lowcost palm oil in the world’s oil basket, and Wilmar joining with Indian company Adani to build a state-of-the-art refinery of 1,000 tonnes/day capacity, with a fractionation unit for palm oil.” This was the first step towards modern-day capacity levels in India, as it “immediately caught the eyes of others and a series of new refineries of this size were developed.”

These refineries began producing quality products at a much lower processing cost. As Jain explains: “This expansion is on-going, as the import of oil continues to increase to meet the everincreasing demand of Indian consumers.

As of now, the capacity of both solvent extraction and refining is hardly utilised in full, and is currently up to 33% of installed capacity.”

According to the ILO, by 2008, India had 150,000 crushing units, 779 solvent extraction units and 127 refineries (with vanaspati units attached). India’s edible oil situation will, says Jain, “persistently influence the world demand and supply to a large extent”.

The total market size of the Indian edible oil industry, as of 2008, was Rs600bn, with an import/ export trade of Rs130bn. Domestic turnover had reached around Rs70,000 tonnes and import/ export turnover of about Rs16,000 crores/year, which comprised Rs10,000 crores for import and Rs6,000 crores for export of oil meals, oilseed castor oil, groundnut oil and vegetable fats of treeborne oilseeds.

However, the ICRA notes, the edible oil industry in India is very fragmented, with a large number of participants in both the organised and unorganised sectors. This has resulted in severe competition and inherently thin profitability margins.

To tackle this, the government’s 12th five-year

plan (2012/13-2016/17) aims to increase domestic production of oils from 7.06M tonnes to 9.51M tonnes by the end of the period, by increasing oilseed area and productivity.

Furthermore, a report by India Rating says the Indian edible oil industry is set to attract fresh capital investment of Rs450 crore (US$7.5M) in the financial year 2014/15, compared to Rs100.7 crore (US$1.7M) in 2013/14, following a 2.5% rise in the import duty on refined oil, taking it to 10%.

The import duty on crude oil is 2.5%, making its import and refining operations more attractive and economically viable.

Logistically, imports of vegetable oil enter India via eight important ports, which service a vast hinterland – Mumbai and Kandla in the western region; Mangalore and Cochin in the south west; Chennai, Kakinada and Vizag in the south east; and Calcutta in the eastern region. Out of these ports, Mumbai and Chennai account for as much as 60% of total vegetable oil imports.

The Port of Kandla has a capacity of 261,600m3 and is considered one of India’s largest independent storage facilities for chemicals and vegetable oils.

In 2011, Vopak acquired the port under the new name Vopak Terminal Kandla.

Another important port, Krishnapatnam Port on the east coast of India in Andhra Pradesh, has six edible oil refinery plants in the surrounding area. These consist of South India Edible Oils, with a 1,000 tonnes/day capacity; Emami Foods, 1,000 tonnes/day; Adani Wilmar, 650 tonnes/day; Saraiwaala Agri Refineries, 650 tonnes/day; Gemini Oils, 650 tonnes/day; and Foods, Fats and Fertilisers, 650 tonnes/day.

It is the first port in India to have discharged one million tonnes of edible oil through a single pipeline in 2012-13 and is strategically located for Andhra Pradesh, Karnataka and Tamil Nadu.

PHOTO: ABOIKIS/ADOBE STOCK

cottonseed oil in Gujarat and Maharashtra; rapeseed oil in the northeast and northwest; soyabean oil in central India; and rice bran oil in eastern India.

As public perception changes, the import and consumption of olive oil is also on the rise, seen growing 25%/year. This is a recent development; until 2002, statistics from the India Law Offices (ILO) show, the olive oil sector in India was predominantly unorganised and people used olive oil for cosmetic rather than edible purposes.

On the production side, groundnut, soyabean and mustard oils comprise around 85% of the country’s oilseed, according to the ILO. Coconut is the most important plantation crop – Kerala has the largest number of coconut trees in the country and is famous for its coconut-based products. It accounts for 45.22% of India’s production, while Tamil Nadu, Karnataka and Andhra Pradesh account for 26.56%, 10.85% and 8.93%, respectively.

Coconut is also grown on the Andaman and Nicobar islands.

Palm oil remains the most widely consumed oil in India, due to its blending versatility with other oils and competitive price.

Major players In 2013, Ruchi Soya Industries, Adani Wilmar, Gujarat Co-operative Milk Marketing Federation, Cargill, K S Oils and Marico were the leading players within oils and fats, with an anticipated combined retail value share of 52%. In May Ruchi Soya and Adani Wilmar announced their plan to set up a joint venture.

Ruchi Soya Industries, with a turnover of US$5bn/year, is one of India’s leading edible oil manufacturers (see ‘Family Fortunes’, p---). It produces the popular brands Nutrela, Sunrich, Ruchi Gold and Mahakosh. The company has 21 manufacturing facilities across 19 locations and 139 company depots (with storage and other logistical facilities) across the country providing strategic access to key regions. Its production capabilities total 3.72M tonnes of oilseed extraction in 10 locations; 3.04M tonnes of edible oil refining in 12 locations; 0.9M tonnes of palm fruit processing in two locations; 0.53M tonnes of vanaspati and bakery fats in seven locations; and 3.05M tonnes of soya meal extraction in 10 locations.

Another giant in India is Adani Wilmar, a 50/50 joint venture between the Adani Group and Wilmar International, which set up India’s first port-based refinery at Mundra, Gujarat.

The company has production infrastructure across the country, with crush capacity of 6,200

INDIA PRODUCES OILSEEDS INCLUDING SOYABEANS, RAPESEED, MUSTARD SEED, PEANUTS, SUNFLOWERSEED, COTTONSEED, COPRA, CASTOR, SESAME, SAFFLOWER AND NIGER SEED

tonnes/day and refining capacity of over 9,100 tonnes/day. It produces the brands Fortune, King’s, Raag, Bullet, Fryola, Jubilee, Alpha, Alife and Aadhaar.

Cargill India handles soyabeans, rapeseed, groundnut and other vegetable oils and meals, distributing the Leonardo brand of olive oil and other brands such as Gemini, Sunflower Vanaspati, Nature Fresh, Sweekar and Rath.

The company also owns and operates three vegetable oil refineries located at Paradeep (Odisha), Kandla (Gujarat) and Kurkumbh (Maharashtra).

K S Oils produces the brands Kalash, Double Sher and K S Gold, among others, and processes mustard seed, soyabean oil and palm oil, enjoying an 11% market share in mustard oil. The company’s manufacturing plant is located on the belt of Madhya Pradesh and Rajasthan, with the capacity to crush 1,475 tonnes/day of mustard seed.

According to the company’s website, four further plants are planned. w Charlotte Niemiec is OFI’s former assistant editor

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On 25 May, Ruchi Soya and Adani Wilmar announced that they planned to set up a new joint venture to tap into the country’s rising food demand and purchasing power. Charlotte Niemiec looks at the operations of Ruchi Soya and its joint ventures and strategic decisions that have helped contribute to the company’s success in the soyabean, edible oil and renewable energy industries

Family fortunes

R

uchi Soya Industries Limited is India’s largest manufacturer of edible oils, vanaspati, bakery fats and soya foods.

It is the second largest fast moving consumer goods (FMCG) company in India and among the 50 fastest growing in the world. Ruchi Soya has 21 manufacturing facilities across 19 locations, 11 wind power generating locations and 139 company depots (with storage and other logistical facilities) across the country providing strategic access to key regions. It has a large distribution presence in India with over 6,000 distributors covering 2,210 towns and over 600,000 retail outlets. Its production capabilities, spread across various locations, total 3.72M tonnes of oilseed extraction in 10 locations; 3.04M tonnes of edible oil refining in 12 locations; 0.9M tonnes of palm fruit processing in two locations; 0.53M tonnes of vanaspati and bakery fats in seven locations; 3.05M tonnes of soya meal extraction in 10 locations; and 85.3MW of wind power generation in 11 locations.

Today a giant in the country, delivering products such as Nutrela and Ruchi Gold – and enjoying a turnover of US$5bn – Ruchi Soya has humble beginnings.

The company was integral to the ‘soya revolution’ of the 1960s in the state of Madhya Pradesh, when founder Mahedeo Shahra created awareness on the potential of soya among the farmers of that state. As soyabean cultivation began on a commercial scale, the Shahra family, with experience in commodities trading, entered into the oil milling business.

Today, according to the company’s website, Madhya Pradesh is considered the soya bowl of the country and India is the fifth largest producer of soyabeans in the world after the USA, Brazil, Argentina and China, respectively.

Ruchi’s food processing facilities in the state were constructed in 1986 and, in 1992-93, Ruchi

DINESH SHAHRA IS THE FOUNDER AND MANAGING DIRECTOR OF RUCHI SOYA INDUSTRIES LIMITED, INDIA’S LARGEST MANUFACTURER OF EDIBLE

established India’s first soyabean seed processing facility of 400 tonnes/day capacity. A few years later, Ruchi entered into the edible oil and distribution business and, shortly after, it expanded its soya processing facility to 2,000 tonnes/day.

By 1990, it was well positioned to establish the first port-based edible oil refinery at Chennai, South India’s biggest industrial and commercial centre and the capital of Tamil Nadu. Here, the company introduced its palm oil in packed form under the ‘Ruchi Gold’ brand, which remains one of its most popular edible oil products.

Not content with imports, Ruchi began domestic oil palm production in 2004-05 and, in 2005-06, it amalgamated its soya-based and other edible oil companies.

In 2009-10, Mac Oil Palm Limited and Palm Tech India Limited were merged, which gave Ruchi access to 80,000ha for oil palm plantations and palm fruit processing capacity of 518,400M tonnes/year.

Currently, Ruchi Soya has oil palm procurement

TABLE 1: RUCHI SOYA’S MANUFACTURING CAPABILITIES IN INDIA Business operations Capacity/year Oilseed extraction Edible oil refining Palm fruit processing Vanaspati and bakery fats Soya meal capacities Wind power generation Source: Ruchi Soya Industries

4.02M tonnes 2.99M tonnes 0.52M tonnes 0.52M tonnes 3.29M tonnes 85.3 MW

Locations 11 14 2 7 11 11

rights for oil palm plantations covering a land bank of 200,000ha across six Indian states.

Dipping its toes into the renewable energy industry, in 2010-11, Ruchi entered into a joint venture (JV) with Indian Oil Corporation Limited and set up wholly-owned subsidiaries in Singapore and Dubai for overseas ventures.

The following year, it set up a refinery and vanaspati unit at Karanpura (Bihar) and another refinery in Guna, Madhya Pradesh, where it launched its Dal Analogue and Nutrela Table Spread brands. The same year, it signed a Memorandum of Understanding (MoU) with Thermex, a leader in energy and environment solutions in India, to set up a one megawatt fluidised bed biomass gasification plant, laying the foundation for large-scale commercialisation of biomass power in the country.

Ruchi’s latest foray into the food industry is a joint venture with Kagome and Mitsui to revolutionise 17M tonnes in the Indian tomato market. Ruchi has also teamed up with J Oil Mills and Toyota Tsusho Corporation to enter into the business of production and marketing of high quality functional edible oil. It has also established a joint venture with D J Hendrick International Inc and JMDI International to research, produce, market and distribute high-yielding, non-genetically modified (non-GM) soyabean seeds, which the company says have a higher oil percentage and nutritional value.

Today, Ruchi has a pan-India presence, according to a Business India corporate report on the company, with five port-based refineries, three

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PHOTO: RUCHI SOYA

F OCUS ON INDIA

E OIL, VANASPATI, BAKERY FATS AND SOYA FOODS

stand-alone crushing plants, eight integrated crushing and refining units, one refinery (not located at port), one vanaspati unit and two palm fruit processing factories.

Keeping it in the family The Ruchi Group is very much family-run.

While Dinesh Shahra – the youngest son of Mahadeo Shahra – joined the company in 1972 and is the managing director (MD), one brother chairs the group, another is MD of Anik Industries Ltd (an agricultural, dairy and other commodities concern), and another brother

is the MD of General Food Ltd and Ruchi Pvt Ltd. The brothers’ sons are also the MDs, directors and heads of the Ruchi Group’s various subsidiaries and related companies, such as Ruchi Strips & Alloys Ltd, Indian Steel Corporation Ltd and Ruchi Agritrading Pte Ltd. But the model works. The company is poised to double its turnover to 50,000 crore (US$8.1bn) in three years, by launching new products and reaching out to new markets, a Hindu Business Line article explained in October 2014. In addition to its current offerings, Ruchi plans to launch a series of edible oils such as soyabean oil, kachhi ghani mustard oil, rice bran oil, sunflower oil, groundnut oil and cottonseed oil under its Mahakosh brand.

The decision comes as demand for edible oils increases in the country. Ruchi Soya’s market share in the packed edible oil sector, which stood at 19% in 2015, was expected to reach 25% in the next three years.

reducing import dependency through improving the oil content of domestically grown soyabeans which, in turn, will benefit public health, conserve precious foreign exchange, raise farmer incomes and improve the rural economy.”

Other joint ventures include that made in June 2013, when Ruchi entered into a JV with Japan’s edible oil major J-Oil Mills Inc and a global trading company Toyota Tsusho Corporation. The partnership required Ruchi to sell and transfer its soya processing plant in Shajalpur, in Madhya Pradesh, to the JV for producing and marketing high quality functional edible oils from the second half of 2014.

These JVs are set to support and supplement the research and development (R&D) capabilities of Ruchi, which has an R&D centre in Powai, Mumbai, which focuses on new product developments and modern testing and quality control laboratories across India.

Joint venture strategy

Pushing for palm and sunflower

Part of the company’s success is due to its strategic joint ventures which, Dinesh Shahra told Business Line, are vital for innovation in India. “India’s FMCG sector is currently undergoing a paradigm shift, driven by a ‘lifetime change of the customers’”, which has “forced major players in the sector to promote products with customer preferences.”

He adds: “Our view of innovation has been multifaceted; we understand evolving customer needs and focus on providing high quality products through innovation to attract increasing numbers of customers.”

The company’s latest joint venture occurred in February 2014 which, it said, had the potential to revolutionise soyabean production in India. The JV was with D J Hendrick International of Canada and KMDI International of Japan for research, production, marketing and distribution of highyielding non-GM soyabeans in India. Ruchi Soya will hold 55% of the equity.

The Business Line article explains that, while India produces large amounts of soyabeans, with yields around 12M tonnes/year and an additional 1.8M tonnes/year of soyabean oil, its productivity of just 1.02M tonnes/ha is less than half the global average of 2.5M tonnes. India is thus a net importer of soyabean oil, purchasing almost 1.2M tonnes/year.

“India’s soyabean oil consumption far outstrips domestic production so, if corrective action is not taken, the country’s foreign exchange bill will continue to inflate”, explains Ruchi’s CEO, Satendra Aggarwal. “This JV plans on

What began as a foray into palm is now becoming a focus – the company proposes to produce 300,000 tonnes of fresh fruit bunches (FFBs), produce 53,000 tonnes of crude palm oil (CPO) and 6,000 tonnes of crude palm kernel oil (PKO) by 2014-15.

This figure is to double over the next four years to reach levels of 100,000 tonnes of CPO and 11,000 tonnes of PKO, N K Akora, corporate head of Ruchi’s oil palm division told Business Line.

The future The joint venture between Ruchi Soya and Adani Wilmar will have the exclusive right to originate, market and distribute finished products from both companies including oilseeds and vegetable oils, derivatives and by-products; soya foods, by-products and all other food products; oleochemicals; biodiesel; grains; and castor oil and derivatives.

Adani Wilmar will own 66.66% and Ruchi Soya the remaining 33.34%.

The companies said that the venture was conceived looking at India’s complex agricultural environment, where declining farm productivity was occurring in the face of rising consumption patterns. this could be partially eased by optimising and improving the supply chain networks of both groups, they said.

“We are very bullish on Indian demand for high quality food products due to population and economic growth,” said Kuok Khoon Hong, w chairman and CEO of Wilmar.

Charlotte Niemiec is OFI’s former assistant editor

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O F I I NDIA 2017 PREVIEW

Mumbai to host OFI India 2017

OFI India returns to the world’s largest edible oil market on 19-20 May 2017 at the Bombay Convention and Exhibition Centre

Book a stand Exhibition & sponsorship Mark Winthrop-Wallace, Sales Manager E-mail: markww@quartzltd.com Tel: +44 (0) 1737 855 114 Anita Revis, Sales Consultant E-mail: anitarevis@quartzltd.com Tel: +44 (0) 1737 855 068 Nikunj Vishwakarma, India Sales Executive E-mail: nikunj@quartzltd.com Tel: +91 67351022; +93 73517070 Erik Heath, Chinese Sales Executive E-mail: erikheath@quartzltd.com Tel: +44 (0) 1737 855 108

Present a paper OFI India 2017 Business Conference To present a paper, contact: Serena Lim, Editor, Oils & Fats International (OFI) E-mail: serenalim@quartzltd.com

www.ofievents.com/india

W

ith the success of the first OFI India event in Hyderabad this April, the show’s organisers are delighted to return to India by hosting OFI 2017 at the Bombay Convention and Exhibition Centre (BCEC) in Mumbai on 19-20 May 2017.

OFI India 2017 will feature: t An international exhibition of suppliers, producers and processors t A Business Conference: ‘New Strategies, New Approaches’ t A Smart Short Course technical programme

Learn from the experts Delegates at the two-day OFI India Business Congress & SOPA Soya Conference will have the chance to learn from leaders in their fields. Four modules will cover ‘World Supply and Demand – 2017/18 Price Forecast and Outlook’; ‘The Indian Market – Challenges and Opportunties’; ‘SOPA Soya Conference’; and ‘Feedstocks and Applications’.

A parallel two-day Smart Short Course technical programme will be held for marketing, technical and plant personnel, entitled ‘Advanced Extraction, Processing and Use of Sunflower, Cottonseed, Soyabean, Canola and Palm Oil’.

The Indian market India is the world’s largest edible oil importer and the second most populous nation in the world, with over 1.2bn people. It imports some 14M tonnes/ year of edible oil, against domestic production of 7-8M tonnes. With the country projected to need some 30M tonnes of edible oils in 10 years’ time and increases in population and lifestyle changes driving a rise in edible oil consumption, interest is strong in this growing market.

Palm oil remains the most widely consumed oil in India due to its blending versatility with other oils and competitive price. Palm oil’s food use consumption in India was expected to rise to

THE GATEWAY OF INDIA IS AN ICONIC LANDMARK OF MUMBAI, HOST CITY OF OFI INDIA 2017 (PHOTO: ADOBE STOCK)

9.2M tonnes in 2014/15, against 3.2M tonnes for soyabean oil and 2.6M tonnes for rapeseed oil.

Vegetable oil imports enter India via eight important ports – Mumbai and Kandla in the western region; Mangalore and Cochin in the southwest; Chennai, Kakinada and Vizag in the southeast; and Calcutta in the eastern region.

Mumbai – India’s commercial centre The Bombay Convention & Exhibition Centre (BCEC) is the largest permanent exhibition centre in the private sector in India. The centre is ideally situated along the Western Express Highway in Goregaon, within 10 minutes from Mumbai’s airports, walking distance to train stations and a 20 minute drive from the heart of the city. There are numerous hotels, entertainment activities, retail shopping and sightseeing spots in close proximity.

Mumbai is situated on the west coast of the Indian peninsula and its superb natural harbor provided a focal point for sea routes crossing the Arabian Sea, and Mumbai soon became the main western gateway to Britain’s expanding Indian empire. The city emerged as a centre of manufacturing and industry during the eighteenth century. Today, Mumbai is India’s commercial and financial capital.

Industry support OFI is supported by the main edible oils and fats associations in India including the Solvent Extractors’ Association of India (SEA); the Soybean Processors Association of India (SOPA); the CSIRIndian Institute of Chemical Technology (IICT) and also the Federation of Oils, Seeds and Fats Associations Ltd (FOSFA). w

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F OCUS ON INDIA

Plant & technology listing 2016 Oils & Fats International’s updated Indian selection of plant and equipment suppliers to the oils and fats industry Anchrom Enterprises I P Ltd 101-104 Shri Aniket Navghar Road Mulund, East Mumbai Tel: +91 22 2163 9928 Fax: +91 22 2163 9927 E-mail: hptlc@anchrom.in Website: www.anchrom.in Other: Chromatographic analysis of fixed oils Ascent S.No-2, 1st Floor Nalanda Shopping Center Station Road, Goregaon (W), Mumbai Maharashtra 400062 Tel: +91 2228 765 887 Fax: +91 6691 0293 E-mail: ascent08@gmail.com Website: www.ascentmachineries.com Bombay Test House Pvt Ltd Unit No: 1, 4th Floor, Banking Complex-II Plot No. 9 & 10, Sector 19-A Opp. APMC Market -2, Vashi Navi Mumbai, Maharashtra 400703 Tel: +91 224 1239 185 Fax: +91 222 7831 911 E-mail: bombaytesthouse@gmail.com Website: www.bombaytesthouse.com Other: Technical testing, quality control and analysis BUCHI India Pvt Ltd 201, Magnum Opus Shantinagar Ind. Estate Vakola, Santacruz, Mumbai Maharashtra 400074 Tel: + 91 2266 7754 00 Fax:+ 91 22 66 71 89 86 E-mail: india@buchi.com Website: www.buchi.com Chempro Technovation PVT Ltd 802 Astron Tech Park Satellite Road Ahmedabad Gujarat 380015 Tel: +91 982 500 5649 E-mail: ramesh@chempro.in Website: www.chempro.in Other: Dry fractionation, hydrogenation autoclaves D. P. Engineers A-12, LGF, Pandav Nager Complex Ganesh Nager, Near Aggarwal Sweet Delhi 110092 Tel: +91 1122 08 3434 E-mail: dpengineers300@yahoo.co.in Website: www.dpengineer.co.in

Fenix Process Technologies Pvt Ltd K 6/1, Malini, Erandwane Co-op Housing Society, Erandwane, Pune - 411004 Tel: +91 20 6650 8772, 6500 8773 Fax: +91 20 2545 8454 E-mail: info@fenix.in Website: www.fenix.in Contact: M.V Rao Other: Evaporation, used oil re-refining, static mixers, methanol recovery, glycerine purification Filteration Engineers India Pvt. Ltd Plot No. W 62B, TTC Industrial Area MIDC Rabale, Navi Mumbai, Maharashtra 400701 Tel: +91 22 2760 8501 Fax: +91 22 2760 8510 E-mail: sales@feipl.com Website: www.feipl.com Flosys Pumps PVT Ltd No.90 SIDCO Industrial Estate Malumichampatti Post Coimbatore Tamil Nadu 641050 Tel: +91 422 2655 030 Fax: +91 422 2655 230 E-mail: info@flosys.in Website: www.flosys.in Fortune Natural Resources 402 Lenyadri Tower, Plot No 49 -2 Sector 19-A Nerul East, Navi, Mumbai Maharashtra 400 706 Tel: +91 22 2772 5497 Fax: +91 22 2772 4909 E-mail: pawankpoddar@gmail.com Website: www.fortunenatural.com Contact: Pawan Kumar Poddar HRS Process Systems Ltd 201/202, Karan Selene, 851, Bhandarkar Institute Road, Pune Maharashtra 411004 Tel: +91 20 2566 3581 Fax: +91 20 2566 3583 E-mail: info@hrsasia.co.in Website: www.hrsasia.co.in Kevin Enterprises Pvt Ltd Plot No.11, Street No.10, MIDC, Andheri (E) Mumbai, Maharashtra 400093 Tel: +91 2261 4780 00 Fax: +91 2261 4780 01 E-mail: contact@kevincpp.com Website: www.kevincpp.com Other: Structured packing, random packing, tower internals, mist eliminators, tower trays *Kumar Metal Industries Private Ltd 101 Kakad Bhavan 30th Road, Bandra (West), Mumbai 400050 Tel: +91 22 26441673, 28458200 28458300 E-mail: kumarind@vsnl.com Website: www.kumarmetal.com Contact: Rishabh S Maniktala

MAZDA Limited Mazda House, 650/1, Panchvati Second Lane Ambawadi Ahmedabad, Gujarat 380006 Tel: + 91 79 4000 7000 Fax: + 91 2656 5605 E-mail: vacuum@mazdalimited.com Website: www.mazdalimited.com Mectech Process Engineers Pvt. Ltd. 366 Phase 2, Udyog Vihar Gurgaon Gurgaon 122016 Tel: + 91 124 470 0800 Fax: + 91 124 470 0801 E-mail: pb.nalawade@mectech.co.in Website: www. mectech.co.in Mold-Tek Group Plot Number 700, Road Number 36 Jubilee Hills, Telangana, Hyderabad Tel: +91 40 40 300 300 Fax: +91 40 300328 E-mail: kavya@moldtekindia.com Website: www.moldtekgroup.com Muez-Hest India Private Limited 230 & 231, Blue Rose Industrial Estate W. E. Highway, Borivali (East) Mumbai, Maharashtra 400 066 Tel: +91 22 2870 1752 Fax: +91 22 2854 1758 E-mail: info@muezhest.com Website: www.muezhest.com Other: Meal desolventisation, condensate recovery management system Neo Conveyors G-414,UPSIDC PHASE-II, M.G Road Industrials Area Ghaziabad, Uttar Pradesh 201015 Tel: +91 965 411 2235 E-mail: info@neoconveyors.com Website: www.neoconveyors.com Other: Conveyors Oilex Engineers India Pvt Ltd 101 Akshaya Plaza, Road No 1, Chembur Mumbai, Maharashtra 400077 Tel: +91 22 2528 1265 Fax: +91 22 2528 7909 E-mail: info@oilexindia.com Website: www.oilexindia.com Rostfrei Steels Pvt Ltd 211, 2nd Floor, Okhla Phase 3 New Delhi 110020 Tel: + 91 9810 1381 69 E-mail: monica@rostfreisteels.com Website: www.rostfreisteels.com Other: Solvent plants Sharplex Filters (India) Pvt Ltd R-664, T.T.C Industrial Area M.I.D.C. Rabale, Maharashtra, Navi Mumbai Tel: +91 22 6940 9850 Fax: +91 22 2769 6325

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Extraction

* Denotes entries from 2015 questionnaire ‘Other’ refers to other activities selected in the accompanying chart (right)

Screens & filtration

ANCILLARY EQUIPMENT

The above companies are a selection of Indian plant, equipment and technology suppliers to the oils and fats industry who have replied to an Oils & Fats International questionnaire this year. Please refer to ‘Summary Table of Company Activities’ chart for companies’ areas of operation.

Storage & handling

United Oil Mill Machinery and Spares Pvt Ltd D-58, 2nd Floor, Okhla Industrial Area Phase 1 New Delhi, Delhi 110020 Tel: + 91 11 2637 1201 Fax: + 91 11 2637 1200 E-mail: ash@umas-india.com Website: www.umas-india.com Veendeep Oiltek Exports Pvt Ltd N-16/17/18, Additional Midc, Patalganga Dist. Raigad 410207 Tel: +91 291 2250 532 Fax: +91 291 2250 534 E-mail: info@veendeep.com Website: www.veendeep.com

Hydrogenation

PROCESS PLANT & EQUIPMENT

End user processes/equipment

Tintometer India Pvt Ltd B-91, APIE, Sanathnagar, Hyderabad, Telangana 500018 Tel: +91 9322 4434 33 E-mail: k.kantawala@tintometer.com Website: www.lovibondcolour.com Other: Tintometer, color matching equipment

Other equipment

Suresh Engineering Works Shukla Industrial Shed, Mahadeoseth Compound, Mahim Road behind Briwasi Hotel Palghar, Maharashtra 401404 Tel: +91 2525 254793 Fax: +91 2525 254793 E-mail: sureshengine@vsnl.net Website: www.sureshengineering.com Contact: Suresh Kewat Other: Driers, drum flakers etc

Refining

Surendra Kumar & Co. Pvt Ltd #B-10, 1ST Floor, 219-C Old China Bazar Street Kolkata, WB 700001 Tel: +91 9339 2335 33 Fax: +91 3340 6850 10 E-mail: skcplindia@gmail.com Website: www.skcpl.in

OILSEED CRUSHING MILLS SOLVENT EXTRACTION FISH OIL/MEAL PROCESSING RENDERING/FAT MELTING PLANT PELLETING MILLS OTHER DEGUMMING WINTERISING CRYSTALLISATION OIL DISTILLATION/FRACTIONATION ALKALI & PHYSICAL REFINING INTERESTERIFICATION MISCELLA REFINING DEODORISERS BLEACHERS OIL DRYERS FAT SPLITTING FATTY ACID DISTIL’N/FRACT’N OTHER HYDROGEN GENERATORS HYDROGEN SYSTEMS OTHER COOKING/SALAD OILS BUTTER FORMULATION SHORTENING/MARGARINE PROD’N VITAMIN E PRODUCTION LECITHIN PRODUCTION SULPHONATION ETHOXYLATION/PROPOXYLATION DETERGENT FORMULATION DETERGENT PRODUCTION SOAP PRODUCTION SOAP FINISHING COSMETICS PRODUCTION GLYCERINE REFINING FATTY ACID DERIVATIVES PHARMACEUTICALS BIODIESEL/METHYL ESTER OTHER PNEUMATIC CONVEYORS BELT CONVEYORS VIBRATORY CONVEYORS SLATTED CONVEYORS ELEVATORS LOADING ARMS/CHUTES AUGER FEEDERS STORAGE SILOS STORAGE TANKS OTHER SCREENS CENTRIFUGAL SEPARATORS GRAVITY SEPARATORS MAGNETIC SEPARATORS MEMBRANE SEPARATORS FILTER PRESSES PRESSURE LEAF FILTERS OTHER PACKING EQUIPMENT INSTRUMENTATION PUMPS/FLUID HANDLING VACUUM SYSTEMS/EJECTORS PROCESS HEATING SYSTEMS STEAM BOILER THERMAL OIL HEATER HEAT RECOVERY SYSTEM OTHER

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Veendeep Oiltek Exports Pvt Ltd

United Oil Mill Machinery & Spares

Suresh Engineering Works

Shree Nandinee Fibre Glass Engineers

Sharplex Filters (India) Pvt Ltd

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Rostfrei Steels Pvt Ltd

Oilex Engineers India Pvt Ltd

Neo Conveyors

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Muez-Hest India Private Limited

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Mold-Tek Group

MAZDA Limited

Kevin Enterprises Pvt Ltd

HRS Process Systems Ltd

Fortune Natural Resources

Flosys Pumps PVT Ltd

Fenix Process Technologies

D. P. Engineers

Ascent

Shree Nandinee Fibre Glass Engineers Pvt Ltd 81/17 & 81/16 GIDC Industrial Estate Makarpura Nr. Guajarat Aluminium Pvt Ltd Vadsar Main Road, Vadodara Gujarat 390010 Tel: +91 265 6444 528 Fax: +91 265 2656 104 E-mail: info@shreenandineefibreglass.com Website: www.shreenandineefibreglass.com Other: Non metallic (pp, frp, hdpe, pvdf, pvc) piping, tanks, vessels, agitator, scrubbing systems

BUCHI India Pvt Ltd

v E-mail: sales@sharplexfilters.com Website: www.sharplex.com Contact: Satish Khadke

Chempro Technovation PVT Ltd

F OCUS ON INDIA

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24 – September 2016 w TO RECEIVE REGULAR COPIES OF THE MAGAZINE CLICK HERE

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The Industry’s Number 1 Choice Serving the international oils and fats industry for nearly 30 years OFI Aug.Sept cover_feature.qxp 8/3/12 3:33 PM Page 1

As an industry player you require the latest news and developments at your fingertips.

Aug/Sep 2012 Vol 28 No 7 www.oilsandfatsinternational.com

Make sure you understand the trends that will affect your business. Don’t let your competitors take the leading edge.

OFI examines the latest important topics affecting every step of the supply chain – such as feedstocks, processing, trading, transport and shipping, technology, biofuels, sustainability, legislation and consumer trends – in its news, market columns and features.

SUSTAINABILITY

RTRS: Expense without return?

RENEWABLE RESOURCES The drive towards bioplastics in cars Exhibition catalogue inside

OFI Nov cover_feature.qxp 10/4/12 9:14 AM Page 1

March Cover_feature.qxp 03/03/2014 11:47 Page 1

March 2014 Vol 30 No 3 www.oilsandfatsinternational.com

Exhibition catalogue inside

Oct/Nov 2012 Vol 28 No 8 www.oilsandfatsinternational.com

FLAXSEED

CASTOR OIL

Recovering from the Triffid gene

RUSSIA

Deadly opportunity

OLIVE OIL

Maintaining standards

MIDDLE EAST

Staying afloat

cover_feature.qxp 4/4/13 9:46 AM Page 1

Readying for biofuels

BUTTER

Industry keeps spreading April/May 2013 Vol 29 No 4 www.oilsandfatsinternational.com

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