Domestic Consumption of Veg Oil in India Likely to Grow by 1 MT a Year Over Next Decade

Considering the projection that domestic consumption of vegetable oils in India is likely to grow by 1 million tons per year over the next ten years, the partnership between associations representing the vegetable oil industries in Brazil and India assumes immense significance. The recent visit of the Indian delegation to Brazil, organised by the Solvent Extractors' Association of India (SEA) and supported by the Brazilian Association of Vegetable Oil Industries (ABIOVE) has given new momentum to the bilateral collaboration between the two countries.

The two associations had signed in 2023 a protocol that established robust collaboration between the two countries in this industrial segment. During the visit, technical trips were taken to industrial crushing and biodiesel plants, logistics terminals and rural properties, according to a joint press release issued by ABIOVE and SEA.

The release said presentations and meetings were organised with companies of the sector, seed associations (including a visit to Brazilian Seed Exhibition), and representatives of the Brazilian government to ensure a valuable exchange of information.

The vegetable oil industries in Brazil and India, represented, respectively, by ABIOVE and SEA, managed to establish a shared and aligned diagnosis of opportunities and challenges. Brazil has the potential to crush more soybeans to meet the growth of biodiesel and domestic food markets, as well as the increased consumption of vegetable oils for food in India.

"Domestic consumption of vegetable oils in India is likely to grow by 1 million tons per year over the next ten years. Although there is growing demand, the challenge of increasing soybean crushing in Brazil lies in the need to expand markets and uses for soybean meal. There is a range of options to improve more soybean crushing in Brazil, however, concrete actions still need to be worked on," the release noted.

The work plan includes the export of soybean meal from Brazil to India. Today the market is closed, as India does not authorise the production or import of products from genetically modified crops (GMO).

The Indian perspective includes diversification of oilseed production, encouragement of non-genetically modified soybean production, focusing on increasing the production of Soybean and other oilseeds to meet growing demand of edible oils and greater use of soybean protein in human nutrition.

"No option should be discarded and cooperation between the countries' vegetable oil industry will make solutions viable. What is certain and clear is that the Indian delegation can personally verify the quality of the soybean production chain from seed production, soybean and cotton planting, processing for bran and oil extraction and export logistics, all with high phytosanitary controls and carried out efficiently," the release said.

Certainly, SEA representatives will bring a good image to their colleagues in India and Southeast Asia, it added.