look news india
Edible Oil Market: Priyam Patel, Managing Director, NK Proteins Pvt Ltd and President of Solvent Extractors Association of India (SEA) West Zone, presented important insights on the edible oil sector during the 21st Annual Conference of Gujarat State Edible Oil Association. Presenting his views as a special guest at the event, Patel analyzed global market trends. He highlighted concerns related to consumer protection and stressed the need for self-reliance in edible oil production to reduce dependence on imports.
Elaborating on the market dynamics, Patel said palm oil stock shortages due to Indonesia’s B40 biodiesel mandate are likely to persist until March 2025. According to this mandate, 40 percent palm oil will have to be mixed in diesel, which will lead to a significant increase in demand. Indonesia’s domestic market obligation (DMO) policy requires a portion of palm oil production to be reserved for domestic use. According to this policy, global export supply will shrink more than adjusted, which will put pressure on prices. Additionally, global supplies of sunflower oil remain tight due to geopolitical disruptions and lower production in key regions, keeping edible oil prices strong.
Patel also highlighted bearish factors that could offset these price trends. He said soybean supplies are abundant around the world and a record crop is expected in South America, which could put pressure on soybean oil prices. Changes in US biodiesel policy under new leadership are likely to reduce demand for vegetable oil in biofuel production, putting further pressure on prices. Additionally, oversupply in the global crude oil market has depressed crude oil prices, making biodiesel less competitive and reducing demand for edible oils used in biofuel production.
Focusing on consumer protection, Patel criticized the illegal practice of reusing cans for edible oil packaging. Reusing old cartons for packaging edible oil is a violation of regulatory norms, and also poses serious health risks to consumers such as food-borne infections and serious illnesses. Patel demanded strict enforcement of food safety rules to remove these irregularities.
He also stressed the importance of achieving self-reliance in edible oil production. India imports more than 60 percent of its edible oil requirements. To reduce this dependence, it is necessary to promote local oilseed cultivation and invest in modern processing technologies. To maintain price stability and protect the interests of consumers, it is necessary for the edible oil industry to become self-reliant.