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1st Thailand Conference of Fats & Oils Role of Rice Bran Oil & its Products in Changing Asia

Indias Overall Demand & Supply of Edible Oil with Special Reference to Rice Bran Oil
By: Dr.B.V.Mehta Executive Director The Solvent Extractors Association of India

Presentation Sequence
SEA Profile Incredible India Indian General Economy Agricultural Economy Indian Oilseed Sector Edible Oil Demand & Supply Short term & Long term projection Rise of Rice Bran Oil in India
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16th -17th May 2013 Naresuan University, Phitsanulok Phitsanulok, , Thailand

SEA Profile
Over 850 Members Formed in 1963 to foster the development & growth of the Solvent Extraction Industry in India g and Premier Association in the Vegetable g Oil Largest Sector in India First Association in Vegetable Oil & Oilseed sector to receive ISO 9001 Certification in India (2004) Recognised as NGO and TPO by Government of India
S. E. Units Oil Millers Refiners

SEA Members
India
6 2 1 104 291 87 49 32 2 43 22 8 50

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. Vanaspati Mnfrs. . Importers . Exporters . Surveyors . Shipping Agents . Fin. institutes . Foreign Buyers &
many more.

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What People Talk About India


Second most populous nation 1.22 Bn people Largest Democracy Multi ethnic country Country with maximum young people Median age is 24 years Amongst the fastest growing economies Fourth largest economy Literacy level 65% (2012)
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3 Bs.

BOLLYWOOD

BEAUTY

BRAINS.
38% of doctors in USA are Indians 12% of scientists in USA are Indians 37% of NASA scientists are Indians 31% of MICROSOFT employees are Indians 27% of IBM employees are Indians 17% of INTEL scientists are Indians 13% of XEROX employees are Indians
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Indian General Economy

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Indian Macro-economic Overview


India a fast growing significant economy in spite of global slowdown
GDP Gr rowth Rate (%)

India's Overall GDP Growth


8.5 7.5 6.1 4.4 5.8 3.8 9.5 9.6 9.3 8.4 8.4 6.7 6.2 6.8 5.7

Strong Macro-economic fundamentals GDP Value: Over US$ 2.0 Trillion (Tn) Purchasing Power Parity (PPP): US$ 5 Tn Forex Reserve: US$ 294 Bn FDI Flow US$ 24.2 Bn (2012-13) Household Savings Rate 30.8% (2011-12) (worlds highest)

The average GDP growth in last five years is registered at 7.1% For FY13-14, growth is projected at 6.8%

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Source : CMIE

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Agriculture Sector GDP Growth


Agriculture GDP Growth Rate (%)

I di Indian A Agriculture i l S Scenario i

Agriculture Sector Growth depends heavily on monsoon performance. For the year 2013-14 growth is forecasted at 2.6%

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Source : CMIE

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Indias Ranking in the World


Area (3.3 Mn Km2) Arable Land (161.7 Mn Ha) Irrigated land (56.0 Mn Ha) Milk Production Rice Production Wheat Production Rapeseed Production Fruit Production Tea Production Sugar Production Cotton Production Coffee Production No. 7 No. 2 No. 1 No. 1 No. 2 No. 2 No. 2 No. 2 No. 2 No. 2 No. 2 No. 5

Indias Agriculture Production

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India is well connected with cellular phone having 930 Million users and with the talk time rate cheapest in the world

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Indian Oilseed Sector


Average yield

Oilseed Sector 2012-13


Area Under Oilseed Cultivation Output of 9 cultivated Oilseeds Output of Cottonseed & Copra Total 26-27 Mn. Ha. 1100 Kgs. 29.8 11.0 40.8 7 45 7.45 17 .5 10.5 Mn. T. Mn. T. Mn. T. Mn T. Mn. T Mn.T. Mn.T.(E)

Demand - Supply and Import of Vegetable Oils

Production of Vegetable Oils Demand of Veg. Oils (Edible) Import of Veg. Oil 2012-13 (Nov-Oct) (Edible)

Per capita consumption (2011) Per capita consumption is rising by 3 to 4% per annum.

14.3 Kg.

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Oilseed Sector - Share of India


Vegetable Oil Sector Turnover US$ 23.0 bn. (Rs.125,000Cr)

Indias Oilseeds & Veg. Oil Production


Qty in Mnt

Year (Nov-Oct)

Oilseeds Production

Availability of Veg. Oils Edible NonEdible 0.65 0.78 0 60 0.60 0.51 0.50 0.49 0.43 0.47 0.43 0.38 Total 7.45 8.12 8 52 8.52 7.77 8.21 8.24 7.76 8.03 7.59 7.59

Import & Export from Oilseed Sector 2011-12 In World's Oilseed Production In World's Oilmeal Production In World's Oilmeal Export In World's Production of Veg. Oils In Worlds Vegetable Oil Import In World's Edible Oil Consumption
Source: OIL WORLD

US$ 12.0 bn. (Rs.65,000 Cr.)

8.0 % 6.8 % 6.5 % 5.2 % 13.6 % 10.2 %

2012-13 (P) 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04

29.46 29.80 32 48 32.48 24.88 27.72 29.76 24.29 27.98 24.35 25.18

6.8 7.34 7 92 7.92 7.26 7.71 7.75 7.33 7.56 7.16 7.21

The average avaibility of vegetable oil is about 8.0 Mnt

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Source : SEA & Ministry of Agriculture

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World & India Production of Oils & Fats 2012-13


Qty : Mn T

Per Capita (kg) Disappearance of Oils and Fats in Selected Countries and World
Country 2011-12 59.4 54.7 92.1 25.1 14.8 33.4 21.5 21.5 29.6 26.0 25.91 2010-11 60.3 52.5 77.7 24.5 14.5 29.7 21.4 21.5 29.0 25.2 25.31 2009-10 61.6 50.4 63.0 23.8 14.3 25.6 21.5 21.7 28.7 23.6 24.68 2008-09 60.0 51.3 46.4 22.9 13.9 23.5 20.8 21.6 27.2 22.2 23.92 2007-08 57.4 54.9 35.7 21.8 12.5 21.9 22.2 21.5 31.3 19.1 23.43 2006-07 56.4 54.0 24.8 21.3 12.1 19.8 22.3 21.3 31.5 15.3 22.78 EU-27 U.S.A. Argentina China India Indonesia Japan Pakistan Turkey Thailand World

Other Oils & Fats GN RBO RBO Cotton Seed Sun Oil Rape Oil

Palm Oil

Oil & Fats Palm Oil Soya Oil Rape Oil Sun Oil Cottonseed Oil Groundnut Oil Rice Bran Oil Other Oils & Fats
TOTAL

World 54.90 43.54 23.69 14.70 4.89 4.21 1.20 41.59 188.72

India 0.08 1.76 2.01 0.21 1.13 0.12 0.90 1.29 7.50

Soya Oil

WORLD

Major Veg.Oils produced in India are Rapeseed Oil, Soybean oil, Cottonseed Oil, Rice Bran Oil & Groundnut Oil
Source: World data from Oilworld 2012 & SEA Data Bank for India

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Number shown includes consumption of oils and fats for Bioenergy


Source : Oil World 2012

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India WTO Bound Rates & Import Duty


2013 WTO Bound Rate 45% 300% 300% 300% 300% 75% Duty on Crude Edible Oils 2.5% 2.5% 2.5% 2.5% Duty on Refined Edible Oils 7.5% 7.5% 7.5% 7.5% 7.5% 7.5% Tariff Value US$/MT
(30th April 2013)

Import Duty on Crude & Refined Palm Oil


Period 1994 (April) Crude Palm Oil 75.0 88.8 20.60 Nil 2.50 Refined Palm Oil 65.0 92.2 99.4 28.33 7.73 7.73
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Item Description

Soybean Oil RBD Palmolein RBD Palm Oil Crude Palm Oil Sunflower Oil Rape/Mustard Oil

1103 (Crude) 861 851 824 -

2001 (Apr.) 2006 (28, Feb) 2008 (20, Mar.) 2012 (10, Oct.) 2013 (23, Jan.)

Import duty on Crude Oil raised from Nil to 2.5% w.e.f. 23rd Jan 2013

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Import & Export from Oilseed Sector


Import of Edible Oils freely allowed
9.98Mnt(11-12) Rs.56,000 Crores (US$: 10.3bn)
(PalmOil:7.66mnt,SFO:1.13mnt, SBO:1.08mnt)

Consumption

Oilmeal Export freely allowed


5.5 mnt (11-12) Rs.8500 Crores (US$: 1.6bn)
(Soybean Meal 4.0 Mnt, Rapeseed Meal 1.25 mnt)

Oilseeds Export freely allowed


1.25Mnt (11-12) Rs.8200 Crores (US$: 1.5bn)
(Seaseme Seed 0.40 Mnt, HPS Groundnut 0.85 Mnt)

Exports of Castor Oil & derivatives Freely allowed


400,000 tonnes valued Rs.4000 Crores (US$: 730 mn)

Export of Edible Oils in consumer packs freely allowed Bulk banned 20,000 tonnes valued Rs.150 Crores (2012-13) (US$: 27mn)

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Consumption of various oils in India in 2011-12


Qty: in MnT

Zone wise Consumption Pattern


WestIndia Population26.1% Consumption32.8% NorthIndia Population23.9% Consumption22.6%

Oils Palm Oil Soybean Oil Rapeseed Oil Sunflower Oil Cottonseed Oil RiceBranOil Groundnut Oil Other TOTAL

Domestic 0.07 1.65 1.74 0.22 1.19 0.85 0.39 0.65 6.75

Import 7.50 1.01 0.09 1.08 9.67

Total 7.57 2.66 1.83 1.30 1.19 0.85 0.39 0.65 16.42

% 46.0 16.2 11.1 7.9 7.2 5.2 2.4 4.0 100


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EastIndia Population29.1% Consumption23.3%

SouthIndia Population20.9% Consumption21.3%

(201011Figures)

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Consumption & Characteristics of Indian Consumer

Consumption of Edible Oils In India


Qty in MnT
17.5

Major Oil consumed in India - Palm, Soya & Rape Lower & Middle Class Price Sensitive
10.12 10.79 9.95 13.36 12.2 11.6 11.98 12.04

15.89 16.08

16.29

Palm Oil preferred Oil being cheapest Vegetable Oil Demand quite Elastic and switchable Rice Bran Oil consumption is picking up in metros on health platform

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Consumption Of Edible Oils In India


Consumption in Mnt
17.44 18.08 19 19.65 20.48 21.28 22.27 23.1

15.7

16.8

Import of Vegetable Oils by India

Demand Scenario upto 2020


Due to high growth in income levels, increasing trend in spending & better living standards; India promises to continue high growth in consumption of edible oils and consumption may reach 23 ml T by 2020 @ 3% growth rate.

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Import of Vegetable Oils


Edible, Vanaspati & Non-edible 2006-07 To 2011-12 (Nov Oct)
(Qty in Mn T)

Import of Palm Oil by India


Qty in 000 Tonnes

Vegetable Oils

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

Countries Jan/Dec 2012 Indonesia y Malaysia Singapore Thailand Others Total


Source: Oil World

Jan/Dec 2011 5011 1677 49 6745

Jan/Dec 2010 5435 1189 2 21 1 6648

Edible Oils V Vanaspati ti


(Hydrogenated Fat)

9.98 -0.21 10.1

8.37 -0.29 8.66

8.82 -0.42 9.24

8.18 0 02 0.02 0.46 8.66

5.61 0 05 0.05 0.65 6.31

4.71 0 25 0.25 0.63 5.59

5301 2494 4 10 7809

Non-edible Total

Import of Veg Oils is rising from year to year to bridge the demand and supply gap
Source : SEA

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Import of Sunflower Oil by India


Qty in 000 Tonnes

Import of Soybean Oil by India


Qty in 000 Tonnes

Countries Jan/Dec Jan/Dec Jan/Dec 2012 2011 2010 Russia 23 10 26 Ukraine USA Argentina Others Total
Source: Oil World

Countries Jan/Dec Jan/Dec Jan/Dec 2012 2011 2010 USA 18 161 Argentina Brazil Paraguay Thailand Others Total
Source: Oil World

1055 37 1 1116

818 43 871

588 11 37 1 663

817 313 32 1180

746 144 36 8 6.8 941

1284 78 45 1568

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Indias Vegetable Oil Imports


FiguresinMln.Tn

Import of Edible Oils by India


Qty: 000 Tonnes

2011-12
10 10.5

2012-13 Nov.12 to Mar.13 (LY)


621 (821) 3120 ( (2079) ) 249 (241) 422 (477) 8 (38) 77 (49) 4497 (3705)

9.24 8.64 8.66

Oils
RBD Palmoein Crude Palm Oil Crude Soybean Oil Crude Sunflower Oil Rape (Canola) Oil Others Total

Nov.11 to Oct.12
1577 5944 1079 1135 91 105 9981

2012-13 Projection
1800 6500 1000 1000 100 100 10500 +

6.26 5.09 5.39 4.76 4.63 5.45 5.13 5.34

Stagnant Domestic oil production is leading to higher imports YOY to feed the growing Indian demand.

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India also Imports about 200,000 tonnes of Non-Edible Oil for Industrial Purpose

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India's Growing Dependence on Imports


59% 53% 49% 62% 58% 61% 59% 57% 49% 50% 46%

Why the Import of Edible Oil is Rising?

57%

Low Productivity of Oilseeds Small farm sizes p Lack of varietal replacement Shifting of acreage from Oilseed to other crops Losses due to pests and diseases Vagaries of nature

Inlast3years,Importdependencehasincreasedmuchmoreduetorising consumptionandstagnantdomesticproduction.

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What are the Prospects for Indigenous Supplies of Oils in India ?


Oilseed output targeted by 4% per year Vegetable Oil Production increase 350/400Thousand per year Demand to rise Faster 700/800 Thousand per year Oil Palm cultivation yet to pick up

India has a Promising Demand Growth


Demand drivers in India
Consistent GDP growth rate at above 7 % in last 5 years The big emerging Indian middle class. Urbanisation Nucleus Family y Change in Food Habits The double digit growth of out of home consumption of edible oils. Per capita consumption of Edible oils in India at 14.0 kg (2012) which is still a lot below threshold level of consumption. Even with a moderate population growth the absolute increase in number of people is quiet High.

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India has a Promising Demand Growth


Governments Support Scheme like NREGA (National Rural Employment Guarantee Act) and rising labor income is increasing the income level of people who are consuming much below the all India level. Supply of edible oils , mainly palm oil, oil by the Government at subsidized rates under PDS . Duty Free-Regime: Nil or negligible duty on crude imports has facilitated lower oil price to consumers and in turn push demand.

Indias Demand Projection by 2020

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Indias Population & Consumption of Edible Oils 2012-2020


Population @1.76% Growth
In Bn

Edible Oil Demand and Import Projection Short & Long Term

Consumption @ 3% Growth
Per Capita Kgs Mn. T

Consumption @ 4% Growth
Per Capita Kgs Mn. T

Consumption @ 5% Growth
Per Capita Kgs Mn. T

Year

Parameter Population (in Bn) Total Demand (MnT) (M T) Domestic Supply (MnT) Import (Mn T) Import as % Share of Demand
* Based on 3% Growth

2013 1.22 17 5 17.5 6.8 10.5 60%

2015 1.25 19 0 19.0 8.0 11.0 57%

2020* 1.32 23 10 23.10 9.2 13.9+ 61%

2012 2013 2014 2015 2016 2017 2018 2019 2020


Source : SEA

1.20 1.22 1.23 1.25 1.26 1.28 1.29 1.31 1.32

13.9 14.3 14.7 15.2 15.6 16.0 16.5 17.0 17.5

16.68 17.44 18.08 19.00 19.65 20.48 21.28 22.27 23.10

13.9 14.4 15.0 15.6 16.2 16.8 17.4 18.0 18.72

16.68 17.56 18.45 19.5 20.41 21.50 22.44 23.58 24.71

13.9 14.5 15.2 15.9 16.6 17.4 18.2 19.1 20.0

16.68 17.69 18.69 19.87 20.91 22.27 23.47 25.02 26.4

(Excluding Non-edible Oils)

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Rice Bran Oil - Indian Scenario

INDIAN RICE BRAN OIL


A GROWTH STORY

Until recent past (1995), RBO produced in India was mainly used in soap manufacturing and product mix of vanaspati manufacturing. Since 1998 SEA, jointly with TMOP & CSIR launched campaign to encourage production and use of RBO as a Healthy Cooking Medium. SEA in its crusade to encourage the production and use of Rice Bran Oil as Health Oil, has organised 13 National Seminars and a number of regional workshops in last fifteen years. It also took a six-member delegation to Japan to study the latest technology in RBO processing (2001).

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Rice Bran Oil - Indian Scenario (Contd..)


2000 onwards it started to be used in Edible purpose in Vanaspati & Blended Oil 2005 onwards with the awareness campaign it was accepted as a very good healthy cooking oil By 2010 Many RBO & Blended RBO Brands entered into the market These efforts have gone a long way in encouraging the production of good quality refined Rice Bran Oil & progressively increasing its consumption as a cooking oil for the Health of Entire Family. India produces the best quality of Rice Bran Oil and has emerged as the largest producer of this oil in the world.

What Is Rice Bran Oil?

..a unique cooking oil produced F From Rice Ri B Bran

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What Is Rice Bran ?


Qty in MnT
5

Indias Paddy Production


Qty in Year Mnt 2004-05 125 2005-06 137 2006-07 140 2007-08 137 2008-09 148 2009 10 2009-10 133 2010-11 142 2011-12 149 2012-13(E) 155

What is Rice Bran?

Rice Bran
Hull

White Rice

Rice Germ

Rice Bran is an oily layer in between the paddy husk and the white rice.

160 140 120 100 80 60 40 20 0

Paddy Production increased by 125 Mnt to 155 Mnt in 10 years

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Rice Bran Potential


Qty in MnT Qty in MnT
Qty in Year Mnt 2004-05 7.0 2005-06 8.0 2006-07 8.0 2007-08 8.0 2008-09 8.0 2009-10 8.0 2010-11 8.0 2011-12 8.0 2012-13 (E) 9.0

Rice Bran Oil Potential


1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0
Qty in Year 000MT 2004-05 1165 2005-06 1277 2006-07 1308 2007-08 1320 2008-09 1386 2009 10 2009-10 1252 2010-11 1336 2011-12 1400 2012-13 (E) 1460

9 8 7 6 5 4 3 2 1 0

Average Recovery 6.5% from Paddy

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Average RBO Recovery 15% to 16% from Rice Bran

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Rice Bran Processing


Qty in MnT

Rice Bran Oil Production


Qty in Year Mnt 2004-05 4.00 2005-06 4.30 2006-07 4.40 2007-08 4.45 2008-09 4.50 2009-10 4.00 2010 11 2010-11 4 40 4.40 2011-12 4.60 2012-13 (E) 4.80

Qty in MnT

4.8 4.6 4.4 4.2 4 3.8 3.6

0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0

Year

Qty in 000Tonnes

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12


2012-13 (E)

680 730 750 800 850 800 830 880 900

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Untapped Potential Rice Bran Oil


Qty in MnT

India Rice Bran Oil Potential & Production


Qty in 000Tonnes 485 547 558 520 536 452 506 520 560

0.6 0.5 0.4 0.3 0.2 0.1 0


Year 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 (E)

2012-13 Paddy Production Rice Production Ri Bran Rice B P Potential t ti l Rice Bran Oil Potential Rice Bran Processing Rice Bran Production Untapped Potential for RBO 155 Mnt 103 Mnt 8 86 M 8.86 Mnt t 1.46 Mnt 4.8 Mnt 0.9 Mnt 0.56 Mnt
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World Production of Paddy, Rice Bran & RBO Potential & Actual Production (2009)
Country Bangladesh Brazil Cambodia China India Indonesia Japan SouthKorea Myanmar Pakistan Philipines Thailand USA Vietnam Others World Paddy Production (MnT) 49.4 11.3 8.2 197.2 120.6 66.4 10.6 5.8 33.2 7.2 15.8 31.5 11 40 63.8 672 Production of Rice Bran Rice Bran Oil in 000 MT (MnT) Potential Potential Actual 2.47 370 2 0.56 80 15 0.41 60 10 9.86 1470 90 6.03 900 820 3.32 490 0.53 70 61 0.29 44 11 1.66 249 101 0.36 50 5 0.79 110 1.57 230 45 0.55 80 2 300 11 3.2 480 32 33.6 5040 1203

Value addition to Rice Bran as raw materials is a must, focused to RBO and its products and By-products

The balance between these are very vital

Source: FAO & SEA Data Bank

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Rice Bran Rice Bran Oil Other Applications


A wide variety of Value-added products are also derived from Rice Bran and Rice Bran Oil
Value-added Product
Gamma Oryzanol Inositol(Vitamin B) Tocopherol(Vitamin E) & Tocotrienol Squalene Calcium Phosphate (Dibasic) Microchemicals Gum Phytin Wax Fatty Acids Soap IP-6 Phytosterol

Uses
Cholesterol Reducing Agent, Growth Preserver, Health Rejuvinator Good for General Growth & Nutrition Antioxidants, Cholesterol Reducing Agent, Anticancer Good for Nutrition and Integrity of Skin Organic Fertilizer Industrial and Medicinal Lecithin Food Processing Industry Polish, Cosmetic, Carbon Paper, Fruit Coatings, Pharmaceuticals Soaps and Paint Industry Industrial Medicinal, Antioxidant, Chelating Agent Cholesterol Reducing Agent

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Benefits in Promoting Rice Bran Oil


It can help in protecting the health of our people from diseases. According to Cardiologists Society of India, 30% of India's population is prone to cardiac problems. Since every 1% reduction in Cholesterol, reduces the risk of heart attack by 2%, Rice Bran Oil can become a boon for our people . It can help bridge the shortage of edible oils in the world when its full potential of 5 Mn tonnes is exploited. Rice Bran Oil Promotion will give better realisation for Paddy to the farmers. Higher capacity utilisation of rice milling and solvent extraction thereby leading to larger employment opportunities.

Status of Rice Bran Oil in the World

Japanese call it Heart Oil. In USA, it is being sold as Worlds Healthiest Oil. In Europe it has aquired the status of Functional Food. It is accepted as a Premium Cooking Oil in Japan, Thailand and also in India.

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And so to conclude.
Natures gift to mankind

Rice Bran Oil


A nutritionally superior edible oil Providing immense benefits for the heart and for general health A healthier alternative to your existing cooking Medium for a Healthy, Happy Family!
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Dr. B. V. Mehta
Executive Director

The Solvent Extractors Association of India


A Premier Association of Vegetable Oil Industry & Trade in India ISO 9001:2008 Organisation
142, Jolly Maker Chambers No. II, 14th Floor, 225, Nariman Point, Mumbai 400 021 Tel: (+91-22) 2202 1475. 2282 2979, Fax.: (+91-22) 2202 1692 Email: solvent@mtnl.net.in , Website:www.seaofindia.com

File :Int RBO Seminar Thailand// Word// Presentations

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