VegOil Import: India Overtakes China by 0.5 Million Tons
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Asia-Pacific is the dominant region for the global Vegetable Oil market, and in Asia-Pacific, China holds the largest share of Vegetable Oil consumption and production. Though the production volume is high, consumption exceeds production, resulting in higher import volumes when compared to export volumes. For instance, according to the US Department of Agriculture, in 2021, China’s population consumed around 2.6 million metric tons of sunflower seed Oil, an increase from approximately 2.07 million tons in the previous year.
The Chinese Vegetable Oil market majorly encompasses palm, soybean, rapeseed, peanut, sunflower, and olive Oil. Over the past five years, soybean and palm Oil had the most significant shares in the Chinese Vegetable Oil market. Wilmar International Ltd (Yihai Kerry), Cofco Corporation, and Xiwang Food are some of the notable Vegetable Oil companies operating in the Chinese and Asian markets.
Japan is another major player in the industry. Japan imports most olive Oil from Southern Europe for cooking and non-food uses. According to the US Department of Agriculture, the consumption volume of olive Oil in Japan amounted to around 75 thousand metric tons in 2021, an increase from 69 thousand metric tons in 2020. Similarly, India is also taking agile measures to be self-reliant in Vegetable Oil. In August 2021, the Government declared a National Edible Oil Mission-Oil Palm (NMEO-OP) to increase domestic Oilseed production and achieve national self-sufficiency in cooking Oils.
To give farmers every advantage, including improved seeds and technology to increase its production of Vegetable Oil, the Government asserted that it would invest more than 11,000 crores through the National Mission on Oilseeds and Oil Palm. Such initiatives are expected to boost the region’s productivity, consumption, and sales during the forecast period.
According to AgFlow data, India imported 1.45 million tons of Vegetable Oil while China purchased 0.9 million tons in Jan-Mar 2023. India imported 0.6 million tons of Vegetable Oil from Indonesia in Jan-Mar 2023, followed by Argentina (0.3 million tons), Malaysia (0.2 million tons), Ukraine (0.16 million tons), and Brazil (83,500 tons). In MY 2021-22, India’s Vegetable Oil imports rose to 14.03 million mt after two years of low imports, as lesser COVID-19 restrictions in the year drove up consumption. India will likely import around 14.37 million tons of Vegetable Oil during the current Oil year (October 2022-September 23).
The Vegetable Oil market is competitive, and the practical strategies adopted by the key players in the market studied include product innovations, partnerships, expansions, and mergers and acquisitions. Sime Darby Plantation Berhad, Wilmar International Limited, Bunge Limited, Golden Agri-Resources, and Archer Daniels Midland Company are prominent players in the market. The major players in the market have a broad geographical presence and extensive product portfolios to cater to numerous consumer demands. This factor assists the companies in maintaining a solid foothold in the market.
Vegetable Oil Market Developments in India
In June 2022, Freedom Refined Sunflower Oil, Gemini Edibles & Fats India (GEF India) announced plans to expand into other States, including Tamil Nadu and Kerala. The business asserted that it is considering strategic expansion and plans to enter Tamil Nadu and Kerala, with a strong demand for Sunflower Oil, in the coming years.
In November 2021, Cargill Incorporated acquired an edible Oil refinery in Nellore, India, and invested USD 35 million to purchase and improvise the facility, which would increase the production volume of Vegetable Oil and help the company to extend its existing supply chain to meet consumer requirements.
Other sources: MORDO INTELLIGENCE
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