Edible Oil Market Faces Global Challenges, says Mr. Priyam Patel
Ahmedabad, November 20: Mr. Priyam Patel, Managing Director of NK Proteins Pvt Ltd and Chairman of the West Zone of the Solvent Extractors’ Association of India (SEA), delivered critical insights on the edible oil sector during the 21st Annual Convention of the Gujarat State Edible Oil Association. Speaking as a special guest at the event, Mr. Patel analysed global market trends, highlighted consumer safety concerns, and stressed the need for self-reliance in edible oil production to reduce dependence on imports.
Addressing market dynamics, Mr. Patel explained that tightening of palm oil stocks are expected to persist until March 2025, driven by Indonesia’s B40 biodiesel mandate, which requires blending 40% palm oil with diesel, significantly increasing demand. Adjustments to Indonesia’s Domestic Market Obligation (DMO) policy, which reserves a portion of palm oil production for domestic use, further constrain global export supply, adding to price pressures. Additionally, the global supply of sunflower oil remains tight due to geopolitical disruptions and reduced production in key regions, further contributing to firm edible oil prices.
Mr. Patel also highlighted bearish factors that could counterbalance these price trends. He noted that global soybean supplies remain abundant, with South America projected to deliver a record crop, which could lead to downward pressure on soybean oil prices. Changes in the U.S. biodiesel policy expected under the new leadership is likely to reduce demand for vegetable oils in biofuel production, further softening price pressures. Additionally, a surplus in the global crude oil market has lowered crude oil prices, making biodiesel less competitive and reducing the demand for edible oils used in biofuel manufacturing.
Shifting focus to consumer safety, Mr. Patel condemned the illegal practice of reusing tins for edible oil packaging. “Recycled tins for edible oil packaging not only breaches regulatory standards but also exposes consumers to severe health risks such as foodborne infections and chronic illnesses,” he said. Mr. Patel called for stricter enforcement of food safety regulations to eradicate this malpractice.
He also emphasised the importance of achieving self-reliance in edible oil production. “India imports over 60% of its edible oil requirements. Promoting domestic oilseed cultivation and investing in advanced processing technologies are critical to reducing this dependency. A self-reliant edible oil industry is essential for ensuring price stability and safeguarding consumer interests,” Mr. Patel remarked.
