A Analytic Study of Coocking Oil

8/10/2019 A Analytic Study of Coocking Oil

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Preface

The Project work is field which uses tools and techniques to transfer

subjectivity in the environment into objectives, also the findings of the

research, when applied show results, which can be measured and evaluated

so there is feedback this is what makes it a dynamic activity.

This survey is an analytical study of a different facts of the product. The

focus is given on the Brand profile. This project entitled Company Profile of

T! "#"$%T&C"$ 'T()% !* C!!C+ !&$ B('-'' '""/, is for the partial fulfillment of 0.B.". &&&) '-0. )egree.

The idea behind this project is to give practical knowledge and to make

them to face real life situation. The project survey is commonly used for the

collection from the respondents through questionnaire. &n this method

statistical techniques have been used systematically. This project survey is not

only with my own efforts but also that of others.

"0&T !'1"0&

0.B.". &&&) '-0.


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ACKNOWLEDGEMENT

I would like to whole hearty thank and express my sincere gratitude to

)r. 2ayant )ubeyHead of the Department of Busines Studies, Babulal Tara

Bai Institute of Research and Technology , Sagar for suggesting me this

problem and for giing an insight in dealing with the sub!ect

"I am highly obliged to 0r. ahul Pandey 3"sstt. Professor4 , and #ll

$aculty member, for guiding me in arious aspects of this pro!ect like

conducting field work and designing %uestionnaire and suggesting me the

&ro!ect 'ork and helping me in finalising the Report" I express my gratitude to

all the customers who ery kindly discussed arious aspects of this study and

proided useful suggestions for discussing arious problems"

(astly, I )ust express my gratitude to all the elders of the family and

citi*en of the city who blessed me in course of discussion" I also extend my

sincere thanks to my family and my friends for their encouragement and

support"

"0&T !'1"0&


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CERTIFICATE

This to certify that MR. AMIT GOSWAMIStudent of M.B.A. IIIrd

Sem.)epartment of Business 'tudies Babulal Tarabai &nstitute of esearch

and Technology Has diligently worked on the &ro!ect Report of the + T!

"#"$%T&C"$ 'T()% !* C!!C+ !&$ B('-'' '"" " He

has done this 'ork under )y -uidance and Superision" This pro!ect work is

original and not submitted earlier for the award of any degree or associate ship

of any other .niersity"

During this study he made meticulous efforts for its completion" I wish

him all the best in this sincere endeaors for a bright and successful future"

'ignature of the 'ignature of the 'ignature of the

'upervisor 5ead of the )epartment -6aminer


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DECLARATION

I hereby declare that the pro!ect work entitled T!

"#"$%T&C"$ 'T()% !* C!!C+ !&$ B('-'' '""

submitted to the)epartment of Business 'tudies Babulal Tarabai &nstitute of

esearch and Technology, is a record of an original work done by me under

the guidance ofMR. RAHUL PANDE !ASSTT. PROF." (ecturer / $aculty

)ember at the )epartment of Business 'tudies Babulal Tarabai &nstitute of

esearch and Technology" I also ensure that this work done by me is purely

original and is my own creatiity"

Da#e $ AMIT GOSWAMI

P%ace $


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E&ec'#()e S'mmar*

The )anagement Research &ro!ect has been undertaken to study the

international market of 0oocking oil Business and to analy*e comprehensiely

the Indian )arket scenario" The research study was conducted to find out the

factors which would influence the ma!or deelopments taking place in this

Business, at both the global as well as domestic leel" This study was also

conducted to understand the Import12xport scenario and goernment

influences"

'ith these ob!ecties in mind, the information is collected from arious

publications related with this Business, websites, -oernment institutions and

other secondary sources" (ater on all this information was compiled in the form

of presentable and highly comprehensible report"

The important outcomes are3

The 0oocking 4il )arket is highly fragmented"

India is the fourth largest oilseed producing country in the World next to

USA, China, and Brazil, harvesting about 25 million tons of oilseeds per

annum.

There has been a persistent gap between demand and domestic

aailability of 0oocking oils" India has emerged as the world5s largest

importer of egetable oils since 6778177"

'orld 9egetable oil importers market has been diided into two parts,

first, the markets of #merican continent including #rgentina and Bra*il ,

and secondly the markets of South12ast #sian countries including

)alaysia and Indonesia" :ow India has entered this cut1throat

competitie market by the import contract of groundnut oil"


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I+#r,d'c#(,+

India is one of the world;s leading producers of oil seeds and oil, contributing

to 7"@= of the total oilseeds produced in the country in a year"

Soya oilcontributes about 6A= of total egetable oils produced in the country"

-roundnut is the most widely consumed and traded 0oocking oil determining

0oocking oil economics" India is the world5s second largest producer of

groundnut, next only to 0hina" But groundnut being primarily a harif

Cmonsoon crop is ulnerable to agaries of monsoon and also speculatie

actiities"In 677E, the -oernment set up a Technology )ission on oil seeds, to increase

production of other oil seeds and oil, and to reduce dependence on imports"

The strategy followed was3

To increase productiity with better farm inputs and practices"

To increase area under oilseed crop"

To encourage winter CRabi oilseed crops"


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This led to a sharp increase in oilseed production drien mainly by rapeseed,

sunflower, castor seed and Soya 4il seed production !umped from E"6mn ton in

the mid 8A;s to around >>mn ton currently" India is today world5s third largest

producer of rapeseed and cottonseed and the largest producer of castor seed"

Timely and ade%uate rain is expected to result in an all time high oilseed

production of 6?>"? lakh tonnes during the current year as compared to earlier

record of 6"< lakh tonnes in 6778177 and 88"6 lakh tonnes for the year >AA>1

A< estimated"

The total oilseeds crop Cinclusie of nine ma!or oilseeds and also copra and

cottonseed for this kharif season is estimated at >AF"> lakh tonnes giing

marketable surplus for crushing 6@?"8 lakh tonnes and harif 4il aailability

?F"< lakh tonnes compared to last year 6?A"@ , 6AA"7 and AA"F lakh tonne, torai at 6"@

lakh tonne, sesame seed at


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The highest oil will be recoered from groundnut and Soya bean, both at 6A"@

lakh tonne each, followed by rice bran oil at E"@ lakh tonne, cottonseed oil at

@"> lakh tonne and copra at ?"> lakh tonne" Rest will be recoered from balance

oilseed crops"

India5s winter groundnut output is expected to top @"@ million tones with the

crop in good shape after sufficient rains" Incessant rain for a week in the

groundnut1growing region of western -u!arat had threatened to damage the

crop, but the rains hae since stopped" Saurashtra grows nearly half of India5s

winter groundnut1crop, which is sown in )ay1Gune and harested in 4ctober1

:oember" -roundnut output in the >AA> winter season fell to


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Re-earc S#'d*

Re-earc O/0ec#()e-

The ob!ecties of the study are explained below3

The &ro!ect has been undertaken3

6" To study the Sagar market of 0ocking 4il"

>" To study the Sagar market of 0ocking 4il"


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Re-earc Me#,d,%,1* Ad,2#ed

Da#a C,%%ec#(,+ Me#,d 3 Secondary )ethod

S,'rce- 3 &ublications

4il 'orld

The 2conomic Times

Business 'orld

-oernment Departments The 0ooking 4il 'ing of the

Department of $ood / &ublic

Distribution

Trade #ssociations

Solvent Extractions Association

of India (SEA)

L(m(#a#(,+-

It may be difficult to determine the

accuracy of the data because the

)ethodology used in collecting the data

may be unknown"

Time and 0ost might be the limitations"


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B'-(+e-- De-cr(2#(,+

A/,'# C,,3(+1 O(%

4ils is a collectie term for more or less iscous, generally organic1chemical

li%uids" Depending on their chemical composition, a distinction may be drawn

between fatty, essential, mineral and silicone oils" $atty oils include li%uid,

semisolid and solid products of egetable and animal origin" They are also

known as sweet oils"

4ne ery basic difference between the way of looking at 0ooking14ils and the

Industrial 4il technician;s iewpoint should be understood" 'hen he sees dark

color, it represents the presence of impurities 11 material that preents the oil

from being light colored, odorless and bland in taste" $rom our iewpoint, those

impurities look desirable 11 the things, which impart color, odor and flaor,

are :.TRI2:TS" It is both tragic and ironic that the remoal of nutrientsshould be e%uated with purity" Tragic because if those nutrients were present

they would contribute to the health of the consumer" Ironic because establishing

the desired purity really results in producing poor %uality food"


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C,(ce ,f ,(%

:ew methods of production, transportation and refining, mean that oils are

aailable to suit any and eery need" -ien such a range of options, what

factors should determine the choice of particular oil

The choice of oil as a food ingredient, or for cooking or frying, will usually

inole a compromise" The factors that will need to be taken into account mayinclude3

Pr(ce3 (ike all other products, this will be goerned by the laws of

supply and demand" Supplies of oil1bearing crops will depend on acreage

planted, the %uality of the crop and, of course, the weather" Demand for

all oils will ineitably grow in line with the increase in the world;s

population" &rices will reflect this fundamental demand, as well as being

influenced by a whole host of technical factors, such as currency

moements and the aailability of transport and refining capacity"

I+#e+ded '-e3 The specific characteristics of some oils mean that they

hae a relatiely limited number of uses, while others are extremely

ersatile and lend themseles to being substituted one for another"

Ta-#e

A22eara+ce

N'#r(#(,+a% a+d ea%# c,+cer+-$#ll oils are made from three main

types of fatty acids3 saturated, monounsaturated and polyunsaturated" $or

the most part, the human body is able to manufacture all the different

types of fat it needs from the fat and other nutrients in the diet" The only

fatty acids which need to be eaten are the so1called essential fatty acids

or 2$#s 1 linoleic and linolenic 1 Calso known as 4mega1< and 4mega1E


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fatty acids" The oerwhelming conclusion of current dietary research is

that while the intake of saturated fats is both unhealthy and unnecessary,

a minimum of


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T*2e- ,f C,,c3(+1 O(%- !H(-#,r* 5 De-cr(2#(,+"

L(+-eed O(%

C,'+#r(e- ,f ,r(1(+

E'r,2e Russia, Hungary

Afr(ca 2gypt

A-(a India

Amer(ca .S#, 0anada, #rgentina, .ruguay, &araguay

A'-#ra%(a 1

(inseed comes from the family (inaceae, -enus (inum, which includes the

ast ma!ority of the herbs and shrubs found in temperate and sub1tropical

regions bordering the )editerranean Sea" (inseedJflax, linium usitassium is

certainly not a new crop" $laxfibre and linen hae been discoered with

remains of Stone #ge man and it is known that flax was a well1established crop

in the :ile 9alley around 6AAA B0"

In terms of 2. support for both linseed and fibre flax, a subsidy system of one

sort or another has been in operation since 67FE" In the early days of the

scheme, $rance was the single biggest producer of linseed" $rench production

fell away significantly towards the end of the 67FAs and it was not until linseed

began to be grown in the . during the early 678As that linseed;s 2. fortunes

were reied to any extent"


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Pa%m Ker+e% O(%

C,'+#r(e- ,f ,r(1(+

E'r,2e 1

Afr(ca 2ast and 'est #frica

A-(a Indonesia, )alaysia, India

Amer(ca 1

A'-#ra%(a 1

&alm kernel oil is ery similar to coconut oil in fatty acid composition and

properties" The two trees also look rather similar, both are called palms but

they belong to different genera" 0oconut palm is 0ocos nucifera, while the oil

palm, which gies both palm oil C&4 and &4 is 2laeis guineensis" This tree

is generally belieed to hae originated in the !ungle forests of 2ast #frica and

there is some eidence that palm oil was used in 2gypt at the time of the

&haraohs, some @AAA years ago"

The palm fruit looks like a plum" The outer fleshy mesocarp gies the palm oil,

while the kernel Cwhich is inside a hard shell gies palm kernel oil" It is rather

strange that the two oils from the same fruit are entirely different in fatty acid

composition and properties" In palm oil, most of the fatty acids are 06E Ci"e"

hae 6E carbon atoms and higher, while in palm kernel oil, they are 06? and

lower"


16/44

&alm kernel oil and its hydrogenated and fractionated products are widely used

either alone or in blends with other oils for biscuit doughs and filling creams,

cake icings, ice1cream, imitation whipping cream, substitute chocolate and

other coatings, sharp1melting margarines, etc"

)alaysia, absorbing oer half a million tonnes per annum for her oleo chemical

Business, no doubt helped palm kernel oil prices, but it cannot be the main

reason since, in spite of that, in the last fie years world exports of palm kernel

oil increased by


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Pea+'# !1r,'+d+'#" O(%

C,'+#r(e- ,f ,r(1(+

E'r,2e 1

Afr(ca 2ast #frica, 'est #frica

A-(a India, South12ast #sia

Amer(ca Bra*il

A'-#ra%(a 1

&eanuts Cgroundnuts are pulses, the seeds of the leguminous plants C#rachis

hypogaea and belong to the same botanical family as beans, peas and lentils"

The peanut, while grown in tropical and subtropical regions throughout the

world, is natie to the 'estern Hemisphere" It probably originated in South

#merica and spread throughout the :ew 'orld as Spanish explorers

discoered the peanut;s ersatility" 'hen the Spaniards returned to 2urope,

peanuts went with them" (ater, traders were responsible for spreading peanuts

to #sia and #frica before making their way to :orth #merica"

By the end of the nineteenth century, the deelopment of e%uipment for

production, haresting and shelling peanuts, as well as processing techni%ues,

contributed to the expansion of the peanut Business" The new twentieth century

labor1saing e%uipment resulted in a rapid demand for peanut oil, roasted and

salted peanuts, peanut butter and confections"


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&eanut kernels range in oil content from about ?


19/44

rapeseed oil would cling to water and steam1washed metal surfaces better than

any other lubricant" In fact, the need for 0anadian rapeseed production arose

from the critical shortage of rapeseed oil that followed the 'orld 'ar II

blockage of 2uropean and #sian sources of rapeseed oil in the early 67?As" The

oil was urgently needed as a lubricant for the rapidly increasing number of

steam engines in naal and merchant ships"

Rapeseed oil for 0oocking purposes was not fully exploited by 'estern nations

until the end of 'orld 'ar II" The merits of the crop as a source of food were

acknowledged by the agricultural Business who felt success could be achieed

if proper processing techni%ues could be adopted"

The first 0oocking rapeseed oil extract in 0anada was in 67@EJ@F" This eent

marked the beginning of a rapidly expanding Business" #ll of the rapeseed

arieties grown produced oils containing large amounts of eicosenoic and

erucic acids, which are not considered essential for human growth"

S,*a /ea+ O(%

C,'+#r(e- ,f Or(1(+

E'r,2e Southern 2urope, Russia

Afr(ca 1

A-(a Gapan, 0hina

Amer(ca .S#, Bra*il, 0anada

A'-#ra%(a 1


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The Soya bean is one of the oldest egetables known to man" Soya beans hae

been grown and consumed for more than @AAA years in 0hina and the $ar 2ast"

They are, howeer, a relatie newcomer to the 'estern consumer, particularlywhen looking at Soya food consumption only" Soya bean has proed adaptable

to a wide ariety of climatic conditions" #lthough sub1tropical in origin,

cultiation now extends much farther" Soya beans only arried in the .nited

States in 68A? and were a relatiely minor crop until the 67>As" Since then,

commercial growing has been continuously increasing"

Soya foods, for example, Soya milk, Soya nuts, tofu and tempeh, are the most

isible form of soy containing foods to the consumer" Soya beans and Soya

bean products hae a much wider application area" They contain all

components necessary for optimal food and feed application" Soya is not only

an excellent source of egetable protein C


21/44

S'+f%,6er O(%

C,'+#r(e- ,f ,r(1(+

E'r,2e Turkey, Russia

Afr(ca South #frica, Tan*ania

A-(a 0hina

Amer(ca .S#, #rgentina, 0anada

A'-#ra%(a 1

The history of world sunflower production in the last >A years has been directly

related to the political changes in the Soiet .nion" The former Soiet .nion

was the largest producer of sunflower seed and also the largest consumer of

sunflower oil" It was also a leader in the research and deelopment of the crop"

Howeer, in the last few years, #rgentina has become the largest producer of

sunflower seed and international based seed companies hae taken the hybrid

seed and new genetics to all corners of the earth"

The decline in sunflower production in the former Soiet .nion regions has

limited the growth of sunflower as it relates to other oilseeds" $rom 677>J7< to

677FJ78, the world;s growth in sunflower production was !ust under 7 percent"

This compares poorly to the other ma!or oilseed crops, such as rapeseed;s >?

percent growth and Soya bean;s >< percent growth"Howeer, the changing role of country production has not impacted the olume


22/44

of sunflower oil exports as dramatically when compared to the other oilseeds"

The percentage increase of sunflower oil exports during the fie year period of

677>J7< to 677FJ78 was percent and

Soya bean oil of ?8 percent" The difference, of course, is that #rgentina and the

.S export a ma!ority of the sunflower oil that they produceL the former Soiet

.nion only exported limited olumes to seeral of their trading partners, such

as 0uba"

4f those oils in common daily use, Sunflower has the highest leel of

polyunsaturates and which are effectiely all of the more stable, linoleic

ariety" The actual leel can ary from below EA= to oer FA=, with the

highest leels being found in crops grown in areas experiencing the largest

ariation between day and night1time temperatures"

Se-ame O(%

C,'+#r(e- ,f ,r(1(+

E'r,2e Turkey

Afr(ca Sudan, 2gypt

A-(a India, 0hina, Burma

Amer(ca )exico, -uatemala

A'-#ra%(a 1

Sesame seed is belieed to be one of the oldest seeds to hae been used as a

condiment, as well as for the home1based production of oil" The 2nglish word

sesame traces back to the #rabic word of simsim, the 0optis semsem and the

early 2gyptian word semsent" The earliest records mentioning the use of


23/44

sesame seed as a spice come from the #ssyrian myth which claims that the

gods drank sesame wine the night before they created the earth" # more

common name is Sesamum Indicum (" which clearly links the sesame seed to

India" Sesame domestication began in #frica and, more particularly, in what is

now known as Sudan" It traeled eastwards to Gapan, leaing a clear trail in

2gypt, India and 0hina and westward to (atin #merica along with the slaes"

0hina and India are today the largest producers of sesame seed" It is already

known that some @AAA years ago, the 0hinese were burning sesame as a source

of light and used it to produce soot for their ink blocks"

C,c,+'# Pa%m O(%

The coconut palm C0ocos nucifera, ( is commonly called the Tree of (ife

because of its myriad uses" #ll parts of the palm, from the roots to the leaes

and particularly its fruit, hae special uses as a proider of food, beerage,

shelter, animal feed and as an important raw material for arious industries like

the oleochemical Business" Traditionally, it re%uires little attention throughout

its life span of oer @A years, thus the reference as a la*y man;s crop"

0ommercial farms, howeer, are tended and deeloped for improed

productiity" The coconut palm reaches a height of >A meters or higher for the

tall arieties, while dwarf arieties grow up to < meters upon maturity"

The palm is propagated through seed nuts, normally from elite parents" These

are stored in a shade to germinate in loose and friable soil proided with

ade%uate moisture and drainage facilities" The sprouted seed nuts are

transferred into polybags to allow proper selection of seedlings" $urthermore,


24/44

the seedlings in polybags are protected from shock and other damages when

transplanted in the fields"

In the countries where it is produced, coconut oil is used mainly as cooking oil

or frying oil" It is also an important raw material for margarine and shortening

production" In the &hilippines, a 7AJ6A blend of coconut oilJcorn oil is used as a

milk fat in filled milk formulations"


25/44

W,r%d Mar3e# ,f C,,c3(+1 O(%

G%,/a% Sce+ar(,The oils and fats Business consists of processors of egetable, animal

and marine products that conert these products into 0oocking oils and fats

usually sold as food products in their own right, or sold as ingredients for

further processing into other food products"

7egetable oils

9egetable oils are extracted from the fruits, flowers and seeds of plants,

and essentially hae the same constituents but its proportions may ary" The

principle egetable oils are soybean, palm, rapeseed, sunflower, corn,

groundnut and cottonseed" #pproximately ?A= of the world5s 0oocking oil

re%uirements are met by Soya oil and crude palm oil C0&4, accounting for

6F= and >


26/44

WORLD PRODUCTION OF 78 OILS 5 FATS$ 799: 4 ;


27/44


28/44

G%,/a% dema+d a+d -'22%* -(#'a#(,+

#lthough demand for oils and fats was affected by the #sian economic

crisis, 4il 'orld, the leading forecaster of supply and demand in the

0oocking oils Business still pro!ected a growth of AAA respectiely" These forecasts assume an expected

recoery of the Southeast #sian economies as well as a decrease in

demand for animal fat due to concern oer its high cholesterol content"

Historically, demand for 0oocking oil has increased in line with

population growth" The aerage growth in global demand for palm oil

has been F"E= per year from 6776 to 677E CI:- Barings ResearchReport, Gune 6777"

Source3 4il 'orld, )ay >AA


29/44

Ma0,r Pr,d'cer- ,f C,,c3(+1 O(%

L(+-eed O(%

0anada remains the world;s largest producer of linseed and is the single biggestexporting country" It has also been the proider of many 2uropean1grown

arieties, although in recent years Hungary has also emerged as a strong

presence in the deelopment of linseed arieties, particularly for winter sowing"

Pa%m Ker+e% O(%

The largest palm kernel oil producing country by far is )alaysia, whichaccounts for more than @>"8= of world production, while two countries,

)alaysia and Indonesia together, account for about 8A= of production and

7A= of exports" :o other country produces more than 8= or exports more than

E

percent in 6778 to 68"F percent in 6777" The year saw significant rebounds in

palm oil supply, exports and consumption"

&alm oil is expected to demonstrate an annual growth of ?"@F= oer the next

fie years" &roduction is expected to reach >E"> million tonnes by the year

>AA@, and anticipated to account for around >A= of the global oils and fats

supply"

)alaysia and Indonesia will be at the forefront of this production growth, with

production forecasts of some 6>"> million tonnes by the year >AA@ in )alaysia,

while Indonesia is expected to reach 7"? million tonnes in production"

Pea+'# O(%


30/44

'orld peanut production totals approximately >7 million )T" India and 0hina

are among the largest producers of peanuts, accounting for approximately >J stricter import standards for food safety and %uality"

Ra2e-eed O(%

0anada has become a market leader by deeloping, producing and marketing

canola as a world oilseed" This achieement would hae been impossible

without the canola breeding research that has been conducted by dedicated

0anadian scientists who had the support of the goernment and on1going

funding of the canola Business"

S,*a /ea+ O(%

In the .nited States, nearly ?AA,AAA farmers grow Soya beans on more than >7

million hectares of land" #t a record of M6F"F billion, Soya beans are the second


31/44

most aluable .S cash crop after corn" The .nited States exports almost half of

its Soya bean production to the world market" It is also the world;s largest

consumer of Soya beans, Soya bean meal and Soya bean oil" # growing world

population, rising incomes and changing diets around the world are pushing up

the market for Soya beans and deried products" 9egetable protein and

egetable oils replace or add to animal protein and fats" 2ating more eggs and

meat re%uires the production of more animal feed"

The 2uropean .nion is the ma!or importer whilst 0hina is the strongest

growing market for Soya beans, meal oil" Southeast #sian countries, Turkey

and the Turkish Republics, are the other ma!or growth markets for Soya beans,

meal and oil"

S'+f%,6er O(%

The former Soiet .nion was the largest producer of sunflower seed and also

the largest consumer of sunflower oil" It was also a leader in the research and

deelopment of the crop" Howeer, in the last few years, #rgentina has become

the largest producer of sunflower seed and international based seed companies

hae taken the hybrid seed and new genetics to all corners of the earth" $rom

677>J7< to 677FJ78, the world;s growth in sunflower production was !ust under

7 percent" This compares poorly to the other ma!or oilseed crops, such as

rapeseed;s >? percent growth

and Soya bean5s >J7< to 677FJ78 was percent and

Soya bean oil of ?8 percent" The difference, of course, is that #rgentina and the

.S export a ma!ority of the sunflower oil that they produceL the former Soiet

.nion only exported limited olumes to seeral of their trading partners, such

as 0uba


32/44

Se-ame -eed O(%

0hina and India are today the largest producers of sesame seed" The largest

producers in #sia are 0hina and IndiaL in #frica it is Sudan followed by :igeria

while, in 0entral #merica, it is )exico and -uatemala"

C,c,+'# O(%

'orld production of coconut aeraged 7"E@ million metric tons, copra terms

C677>17E aerage, which is e%uialent to about @6"AE8 billion nuts" 4f this

total, close to FA= is supplied by the ma!or producers5 i*" Indonesia, India and

the &hilippines" 4f the three leading producers, the &hilippines is the biggest

supplier to world trade in the form of coconut oil, which accounts for some

8A= of her total coconut production" Indonesia and India use the bulk of their

production internally, both as food nuts and as coconut oil"

0oconut is widely traded in the world market in the form of coconut oil"

0oconut oil accounted for E"


33/44

#s for production, olie oil consumption is largely concentrated in the

)editerranean Basin, particularly within the 2uropean .nion and, more

specifically, in its producing countries CItaly, Spain, -reece, &ortugal and

$rance" Between 677FJ78 and 6777JAA, the 2uropean .nion accounted for

F6""? million tonnes"

In the non1)editerranean group, the .nited States was by far the most

important consumer country, with an aerage consumption figure of 6@6,6AA

tonnes, the e%uialent of E">= of aerage world consumption and well aboe

the consumption leels of important producer countries like Syria C= and Turkey C


34/44

Overview of the Coocking Oil business in Sagar

India has a ibrant priate sector drien 0oocking oil Business" 'ith the right

macro1economic policies now in place, the sub1sector has made a huge turn

around and it is no longer an eyesore"

The 0oocking oil Business is now one of the leading sustainers of the positie

annual economic growth rates India has en!oyed for oer a decade now"

Sagar demand for 0oocking oil has been growing at a rate of 817 per

annum" The national demand for 0oocking oil is pro!ected to reach oer 6A">@

lakh )T in >AA@ up from 6AA"7E lakh )T in >AA6" :ational production as of

>AA6 stood at @?"@? lakh )T making India a net importer of 0oocking oil to

the tune of oer ?E"7> lakh )T" This gies inestment opportunities into the

0oocking oil Business" Trained, trainable as well as unskilled labour is readily

aailable for prospectie inestors in the sector to utili*e"


35/44

Im2,r#a+ce ,f C,,c3(+1 O(%- (+ #e C,'+#r*- Ec,+,m*

4ilseeds and 0oocking oils are two of the most sensitie essential

commodities" India is one of the largest producers of oilseeds in the world andthis sector occupies an important position in the agricultural economy coering

an area of >?"A"8F

million tonnes of oilseeds during the year 67771>AAA" India contributes about

7= of the world oilseeds production, about F= of the global production of

protein meal and is the ?th largest 0oocking oil economy in the world" 2xport

of oil meals, oilseeds and minor oils for the financial year 67771>AAA slightly

declined from AAA"

Howeer, in terms of alue, reali*ation has gone up from Rs"


36/44

T*2e- ,f ,(%- c,mm,+%* '-ed (+ Sa1ar

Sagar is fortunate in haing a wide range of oilseeds crops grown in its

different agro climatic *ones" -roundnut, mustardJrapeseed, sesame, linseed,

:iger seedJcastor are the ma!or traditionally cultiated oilseeds" Soya bean and

sunflower hae also assumed importance in recent years" 0oconut is most

important amongst the plantation crops" 2fforts are being made to grow oil

palm in Sagar" #mong the non1conentional oils, rice bran oil and cottonseed

oil are the most important" In addition, oilseeds of tree and forest origin which

grow mostly in tribal inhabited areas are also a significant source of oils"

C,+-'m2#(,+ Pa##er+ ,f C,,c3(+1 O(%- (+ Sa1ar

Saga ris a ast city and inhabitants of seeral of its regions hae deeloped

specific preference for certain oils largely depending upon the oils aailable in

the region" $or example, people in the South and 'est prefer groundnut oil

while those in the 2ast and :orth use mustard seedJrapeseed oil" (ikewise

seeral pockets in the South hae a preference for coconut and Sesame oil"

Inhabitants of northern plain are basically hard fat consumers and therefore

prefer 9anaspati, a term used to denote a partially hydrogenated 0oocking oil

mixture" 9anaspati has an important role in our 0oocking oil economy" Its

production is about seeral )T annually" It has around 6


37/44

4f late, things hae changed through technological means such as refining,

bleaching and De1odouraisation, all oils hae been rendered practically

colorless, odorless and tasteless and, therefore, hae become easily

interchangeable in the kitchen" :ewer oils which were not known before hae

entered the kitchen, like those of cottonseed, sunflower, palm oil or its li%uid

fraction, palmolein, Soya bean and ricebran" #ll of them are again essentially

bland, processed 0oocking oils" #bout EA1FA= predominantly groundnut and

mustard seeds are used to make non1refined or filtered oils" These tend to hae

a strong and distinctie test preferred by most traditional customers"

evelopments in the Business

All agricultural activities in the country will be guided under the Plan for the

Modernization of Agriculture (PMA). The PMA is part of the Government of

Indias broader strategy of poverty eradication contained in the Poverty

Eradication Action Plan (PEAP). Strategically the PMA objectives include:

Deepening decentralization

Reduction in public sector activities in favour of the private sector

Adoption of productivity enhancing technologies

The overall government policy framework in the agricultural sector therefore

continues to emphasize private sector participation and investments. This

emphasis is highlighted in a comprehensive strategy to deal with major

constraints to private sector development

Specifically, in the Coocking oil Business:

The sub-sector has been fully liberalized to create competition in

production, processing and marketing,


38/44

he taxation system is being harmonized so that oil millers operate on a

level playing field, and

Institutions that promote raw material production have been set up and

are adequately financed.

Trends in the Coocking oil Business

Raw material production

Production of raw material in the Coocking oil Business has shown an upward

trend. In 2001, 208.72 lakh MT of locally available oilseeds were crushed and

this scenario is projected to grow positively. Today, the number of farm

families involved in oilseeds growing has been expanding. This trend has

reduced the reliance on imports to meet the national Coocking oil.

Institutional support to raw material production

A number of institutions have been created to boost production of raw

materials for crushing:

The National Agricultural Research Organization (NARO) spearheads

research in the production and dissemination of improved varieties for

vegetable oil processing.

The Cotton Development Organization (CDO) was set up to revive thecotton Business. Already modest progress has been recorded in the

supply of crushable cottonseed.

Solvent Extractions Association of India (SEA), a private sector

organization, is very instrumental in coordinating the rehabilitation and

development of Coocking oil sub-sector. SEA has established a

sustainable seed multiplication and distribution system in the country.

National milling capacity


39/44

There are presently 1,50,000 oil crushing units utilizing 10-30% of their

capacity,785 Solvent Extraction Units utilizing 32% of their capacity,950

Refineries utilizing 32% of their capacity and 222 Vanaspati Units utilizing

41% of their capacity, in the country.The large-scale processors have sophisticated refining, downstream

manufacturing and packaging facilities. Medium-scale mills follow a similar

design of 4 or 5 low-capacity expellers, a decorticator, a low-pressure boiler

and a crude oil neutralizing vessel.

Production of Coocking oil and fat

Large-scale commercial production of refined vegetable oil and fat is a possible

investment.

National demand for vegetable oil exceeds local production, making India a net

importer of Coocking oil and fat. Currently, national demand stands at about

108.65 lakh MT and about 45% of this is met by imports. Out right purchase of

existing mills or joint venture arrangement with the owners are possible

investments in this area. By Indian standards, a large-scale oil processing

facility is estimated to require a minimum of US $ 350,000 450,000 on

equipment and accessories.

Local Market

The local market for oil in India is comprised of households, baking and

confectionery Business, and the food service Business. Most urban areas

have a range of cooking oils in shops and markets.

National demand for vegetable oil is growing at 8-9% p.a. Demand for

vegetable oil is expected to reach 110.25 lakh MT in 2005. This is an

indicator of potential investment in the sub sector.


40/44

F'#'re ,f I+d(a+ C,,c3(+1 ,(% B'-(+e--

Dema+dDr()er-

)acroeconomic factors 3 &opulation growth, per capitaincome, purchasing power, oilseeds crop

4ther factors 3 &rices 1 domesticJ international,

#ailability 1 oil, oilseeds Influence of branded products 1 Nhealth5 message

-rowing preference for conenience foods"

Ke* S'cce--Fac#,r-

Raw material sourcing 3 focus on improing yields,getting better %uality oilseeds , ensuring regular supplies 1through symbiotic relationship with farmer

Branding essential for success Ce"g" 9anaspati 1 Dada, 4ils1 Sun drop

Better distribution network to improe reach 2fficiency in operation 1 to become price competent and

withstand oerseas competition

&roposed $uture trading in 0oocking oils will help curtailprice olatility and lend knowledge 1 based assistance tofarmers of eliminate unofficial markets

F'#'re

In the next fie years, the market for1 0oocking oils will grow by 8 to 7= to 6?"E@ million)T


41/44

B'-(+e--

C,+cer+-

$ree imports, low import duties and slump in globalprices 1 lead to Ndumping5

Domestic industries of 0oocking oils affected 1 lowreali*ation and idle capacities in oil industries

&roduction slippages hae also forced imports

2xcessie Ccheap imports of oilseeds 1 led tounremuneratie prices, locally

Hence, farmers hae shifted to other cash crops

Increasing health awareness 1 impact of oils usage onindiidual5s cholesterol leels

Ta& 2,%(c*

ecent actions taken in the area of *ats and !ils.

Some of the recent actions taken in the area of fats and oils are as under3

9anaspati and margarine continue to be exempted from 0entral 2xcise

and placed at par with the refined 0oocking oils"

Import duty on 0oocking oils has been reduced to 6@= ad1alorom"

There has been further reduction in duty on fatty acids and crude palm

stearin from ?A= to =" Howeer, a surcharge as special custom duty

on imported stocks O >= has been leied"

Special #dditional Duty CS#D has been remoed for 9anaspati"

.pward reision of unsaponifiable matter in anaspati to


42/44

.se of all 0oocking oils including expeller mustard oil and coconut oil

has been allowed in the manufacture of anaspati"

$laouring of margarine with wider range of permitted flaours has also

been accepted by the -oernment" # :otification in this regard is being

issued"

O22,r#'+(#(e- 5 Trea#- A+a%*-(-

O22,r#'+(#(e-$

&nvestment !pportunities

The 0oocking oil Business is now one of the leading sustainers of the positie

annual economic growth rates India has en!oyed for oer a decade now" India5s

demand for 0oocking oil has been growing at a rate of 817= per annum" The

national demand for 0oocking oil is pro!ected to reach oer 66A">@ lakh )T in

>AA@ up from 6AA"7E lakh )T in >AA6" :ational production as of >AA6 stood at

@?"@? lakh )T making India a net importer of 0oocking oil to the tune of oer

?E"7> lakh )T" This gies inestment opportunities into the 0oocking oil

Business"

'trategic location

India is strategically positioned within the South of the Asian continent that

includes the SAARC countries, an economic grouping with a market of over

1500 million people. This location gives India a commanding importance as a

base for regional trade and investment.


43/44

Predictable and stable economic environment

Since 1985, India has been on the path of economic reconstruction and

development, which has made her the new face of emerging Asia. The

economic reforms undertaken, coupled with political stability, have contributedto growth rates averaging 6.5% over the last decade.

Inflation has consistently been maintained below 6 %. India is now rated the

second best improving Countries in the Asian continent after China.

Cheap but quality labour

The quality of labour force is one of Indias main strengths. With hundreds of

universities and polytechnics, all levels of skills and training needed to run the

Coocking oil Business are adequately covered.

India5s labour is cheap compared to that of most developed countries.

Trained, trainable as well as unskilled labour is readily aailable for

prospectie inestors in the sector to utilise"

0acroeconomic factors

&opulation growth31

&er capita income3

&urchasing power3

4ilseeds crop3

Trea#-$

0onsoon dependent "griculture

Raw materials supply of 0oocking oil Business is directly related with the

agricultural production of oil seeds" That agricultural production in India has a

fluctuating trend is now a new thing" #griculture here still depends largely on

monsoon rains and the intensity of the latter has significant influence on


44/44

production" Significantly, een the agriculturally rich state with better irrigation

networkL hae witnessed sharp changes in their production of late"

BIBLIOGRAPHSource3 www"cybgroup"co"uk

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Documents

A Analytic Study of Coocking Oil