The Business Bytes
Ahmedabad, November 20, 2024 (TBB Bureau): The 21st Annual Convention of the Gujarat State Edible Oil Association witnessed a thought-provoking address by Priyam Patel, Managing Director of NK Proteins Pvt Ltd and Chairman of the West Zone of the Solvent Extractors’ Association of India (SEA). Patel’s comprehensive analysis of global edible oil market trends, consumer safety concerns, and India’s dependency on imports underscored the critical challenges and opportunities in the sector.
Delivering his keynote speech, Patel highlighted significant factors influencing the global edible oil market. He pointed out the tightening palm oil stocks expected to persist until March 2025 due to Indonesia’s B40 biodiesel mandate. This policy, which mandates the blending of 40% palm oil with diesel, has escalated domestic demand and reduced export availability. Further compounding the issue, adjustments to Indonesia’s Domestic Market Obligation (DMO) policy are straining global supply. Adding to this scenario, geopolitical tensions and production challenges in key regions have kept sunflower oil supplies tight, contributing to firm global edible oil prices.
However, Patel noted certain bearish factors that could help stabilize the market. “Abundant soybean supplies, particularly with South America poised for a record harvest, could exert downward pressure on soybean oil prices,” he stated. He also highlighted potential policy shifts in the United States under new leadership, which may reduce the use of vegetable oils in biofuel production. Additionally, a global crude oil surplus has lowered prices, making biodiesel less competitive and indirectly reducing edible oil demand in this sector.
Addressing consumer safety, Patel condemned the illegal practice of reusing tins for edible oil packaging, warning of severe health risks such as foodborne infections and chronic illnesses. “This malpractice is a breach of regulatory standards and a grave threat to public health,” he said, urging stricter enforcement of food safety regulations to eliminate the issue.
Patel also made a strong case for self-reliance in edible oil production to reduce India’s dependency on imports, which currently meet over 60% of the nation’s edible oil requirements. “Promoting domestic oilseed cultivation and adopting advanced processing technologies are imperative for achieving self-sufficiency. A self-reliant edible oil industry is key to price stability and protecting consumer interests,” he emphasized.
The convention provided a platform for key stakeholders in the edible oil industry to discuss innovative solutions and policy interventions aimed at addressing these pressing challenges.
