1st IARBO Symposium

Safety, Nutrition And Health

Present and Prospect of Rice Bran Oil

Development in India
By:
Dr. B. V. Mehta
Executive Director
The Solvent Extractors’ Association of India
Mumbai, India

16th -17th May 2014

Wuhan, China

1
 Presentation Sequence

 SEA Profile

 Incredible India

 Indian General Economy

 Agricultural Economy

 Global & Indian Rice Production

 Rice Bran Oil – Growth Story

 Benefits to the Nation in Promoting RBO

 Way Forward
2
 SEA Profile

 Formed in 1963 to foster the development & growth

of the Solvent Extraction Industry in India

 Largest and Premier Association in the Vegetable

Oil 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

 SEA celebrating 2013 as Golden Jubilee year

3
 SEA Members
Over 850 Members India

 S. E. Units
 Oil Millers 29 6

 Refiners 18
2
33
 Vanaspati Mfgrs. 28
1
 Importers
104 43 50
 Exporters
22 8
291
 Surveyors
 Shipping Agents 87
2
 Fin. institutes 49

 Foreign Buyers &

32
many more…. 9
4
 Incredible India

Incredible India 5
 What People Talk About India

 Second most populous nation

 1.25 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)
 4 B’s…. 6
BOLLYWOOD

7
BEAUTY

8
 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

9
Birth Place of Lord Buddha

10
Indian General Economy

11
 Indian Macro-economic Overview
 India – a fast growing significant economy
in spite of global slowdown

 Strong Macro-economic fundamentals

 GDP Value: Over US$ 2.13 Trillion (Tn)

 Purchasing Power Parity (PPP): US$ 5.45 Tn

 Forex Reserve: US$ 309 Bn

 FDI Flow US$ 28 Bn (2013)

 Savings Rate 30.1% of GDP (2012-13),

includes Household Savings Rate of 21.9%

12
 India's Overall GDP Growth

9.5 9.6 9.3

8.5 8.4 8.4
7.5
GDP Growth Rate (%)

6.7
6.1 5.8 6.2
5.7 5.5
4.4
3.8

 The average GDP growth in last five years is registered at 7.1%

 For FY13-14, growth is forecasted at 5.5%

Source : CMIE 13
 India’s Agriculture Production

India is well connected with cellular phone having 903 Mn users (total
telecom users stand at 931 Mn) and with the talk time rate cheapest in the
world
Source : TRAI, data as on 28-Feb-2014 14
 India’s Ranking in the World

Area (3.3 Mn Km2) No. 7

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

15
 Agriculture GDP Growth Rate (%)
Agriculture Sector GDP Growth

 Agriculture Sector growth depends heavily on monsoon performance

 For 2013-14, growth is forecasted at 2.6% compared to 1.4% in previous year

Source : CMIE 16
 World & India Production of
Oils & Fats 2012-13
World India Palm Oil

Other Oils &

Other Oils & Fats Soya Oil
Rice Bran Fats
Oil Palm Oil
Rice Bran
Oil
Groundnut
Oil

Cottonseed Groundnut
Oil Oil
Sun Oil

Rape Oil
Cottonseed
Soya Oil Oil
Rape Oil
Sun Oil

World Oil & Fats (Quantity in MnT) India

55.95 Palm Oil 0.08
42.29 Soya Oil 1.76
24.26 Rape Oil 2.34
13.74 Sun Oil 0.21
4.95 Cottonseed Oil 1.11
3.78 Groundnut Oil 0.28
1.20 Rice Bran Oil 0.93
41.59 Other Oils & Fats 1.49
187.40 TOTAL 8.20
Major Vegetable Oils produced in India are Rapeseed Oil, Soybean oil, Cottonseed Oil, Rice Bran Oil &
Groundnut Oil 17
Source: Oilworld 2013 & SEA Data Bank for India
Global and Indian

Rice Production
 Global Rice Production (2013-14)
Country Qty ‘000 MT %
Global Rice Production (Qty ‘000 MT)
China 1,42,300 29.9
India 1,05,000 22.1 Cambodia
1% Others
17%
Indonesia 37,355 7.9 Philippines China
2% 30%
Bangladesh 35,590 7.5
Myanmar
Vietnam 27,800 5.8 3%
Thailand
Thailand 20,500 4.3 4%

Myanmar 11,957 2.5

Philippines 11,640 2.4 Vietnam
6%
Cambodia 4,900 1.0 Bangladesh India
7% Indonesia 22%
Others 78,531 16.5 8%

World Total 4,75,573 100

Source : USDA

19
 Rice Production – Global vs Indian
World Production India’s Production India’s Share
Year
(MnT) (MnT) (In %)
2001-02 399 93.34 23.39
2002-03 380 71.82 18.90
2003-04 390 88.53 22.70
2004-05 405 83.13 20.53
2005-06 423 91.79 21.70
2006-07 427 93.35 21.86
2007-08 438 96.69 22.08
2008-09 459 99.18 21.61
2009-10 457 89.09 19.49
2010-11 449 95.98 21.38
2011-12 456 104.32 22.88
2012-13 463 103 22.25
2013-14 476 105 22.06
20
Source : USDA
 Production of Food grains & Rice in India
300

250
Qty in MnT

200

150

100

50

0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Food Grains MnT Rice MnT
Year Food Grains, MnT Rice, MnT %
2004-05 198.4 81.1 40.9
2005-06 208.6 91.8 44.0
2006-07 217.3 93.4 43.0
2007-08 230.8 96.7 41.9
2008-09 234.6 99.2 42.3
2009-10 218.1 89.1 40.8
2010-11 244.5 96.0 39.3
2011-12 259.3 105.3 40.6
2012-13 257.1 105.2 40.9
2013-14 263.2 106.2 40.3
Source: Economic Survey, GoI 21
Top Ten Rice Producing States in India

As in January 2012

22
Rice Bran Oil in India....

…. A Growth Story
 What is Rice Bran Oil (RBO)?

..a Unique Cooking Oil

Produced

From Rice Bran

24
What is Rice Bran?

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

25
 Paddy Production in India
Qty in MnT
Year Qty in MnT
160 2004-05 125
140 2005-06 137
2006-07 140
120 2007-08 137
2008-09 148
100 2009-10 133
80 2010-11 142
2011-12 149
60 2012-13 155
2013-14(P) 158
40
20
0

 Paddy Production increased by 125 MnT to 158 MnT in 10 years

26
 Rice Bran Potential in India
Qty in MnT
Year Qty in MnT
90 2004-05 7.50
80 2005-06 8.22
2006-07 8.40
70 2007-08 8.22
60 2008-09 8.88
2009-10 7.98
50 2010-11 8.52
40 2011-12 8.94
2012-13 9.30
30 2013-14(P) 9.48
20
10
0

 Average Recovery 6.0% from Paddy. Rice Bran Potential

in India is close to 9.5 MnT 27
 Rice Bran Processing in India
Qty in MnT
Year Qty in MnT
50
2004-05 4.0
45 2005-06 4.3
40 2006-07 4.4
2007-08 4.4
35
2008-09 4.5
30 2009-10 4.0
25 2010-11 4.4
2011-12 4.6
20
2012-13 4.8
15 2013-14(P) 5.0
10
5
0

Currently India is processing about 5 MnT of Rice Bran

Source : SEA 28
 Rice Bran Oil Potential in India
Qty in MnT
Year Qty in MnT
16 2004-05 1.28
2005-06 1.40
14
2006-07 1.43
12 2007-08 1.40
2008-09 1.51
10 2009-10 1.36
8 2010-11 1.45
2011-12 1.52
6 2012-13 1.58
2013-14(P) 1.61
4
2
0

 Average RBO Recovery of 17% from Rice Bran. Current

potential of RBO is close to 1.6 MnT 29
 Rice Bran Oil Production in India
Qty in MnT
Year Qty in MnT
10 2004-05 0.68
9 2005-06 0.73
8 2006-07 0.75
2007-08 0.80
7 2008-09 0.85
6 2009-10 0.80
2010-11 0.83
5
2011-12 0.88
4 2012-13 0.90
3 2013-14(P) 0.93
2
1
0

India is producing about 900,000 Tonnes of Rice Bran Oil

30
 Untapped Potential of RBO in India
Qty in MnT
6 Year Qty in MnT
2004-05 0.60
2005-06 0.67
5 2006-07 0.68
2007-08 0.60
4 2008-09 0.66
2009-10 0.56
3 2010-11 0.62
2011-12 0.64
2012-13 0.68
2
2013-14(P) 0.68

31
 RBO – Production & Potential in India

2013-14
Paddy Production 158 Mn Tonne
Rice Production 106 Mn Tonne
Rice Bran Potential 9.48 Mn Tonne
Rice Bran Oil Potential 1.61 Mn Tonne
Rice Bran Processing 5.00 Mn Tonne
Rice Bran Oil Production 0.93 Mn Tonne
Untapped Potential for RBO 0.68 Mn Tonne
Average Recovery (estimated for India):
 Paddy to Rice  67% recovery
 Rice to Rice Bran  6% recovery
 Rice Bran to Rice Bran Oil  17% recovery

32
World Potential & Actual Production of Rice Bran Oil (2009)
By Food & Agricultural Organization (FAO), UN
Production of
Country
Rice Bran Oil in ‘000 MT
Potential Actual
Bangladesh 370 2
Brazil 80 15
Cambodia 60 10
China 1470 90
India 1252 800
Indonesia 490 -
Japan 70 61
South Korea 44 11
Myanmar 249 101
Pakistan 50 5
Philipines 110 -
Thailand 230 45
USA 80 -
Vietnam 300 11
Others 480 32
World 5335 1183
Source: FAO 33
 Rice Bran Oil Potential in World
Qty in MnT
Rice Rice Bran Rice Bran Oil
Country
Production Potential Potential
China 142 11.36 1.70
India* 105 9.48 1.61
Indonesia 37 2.96 0.44
Bangladesh 36 2.88 0.43
Vietnam 28 2.24 0.34
Thailand 21 1.68 0.25
Myanmar 12 0.96 0.14
Philippines 12 0.96 0.14
Cambodia 5 0.4 0.06
Others 79 6.32 0.95
World Total 476 39.26 6.06
Average Recovery (estimated for the world): *Average Recovery (estimated for India):
 Rice to Rice Bran  8% recovery  Rice to Rice Bran  9% recovery
 Rice Bran to Rice Bran Oil  15% recovery  Rice Bran to Rice Bran Oil  17% recovery
34
 Rice Bran Oil - Indian Scenario (1/3)
 The First Rice Bran processing plant in India was set up in 1964 in Andhra
Pradesh. States like Punjab, Haryana, West Bengal and other rice growing
states followed the suit with close to 70 plants being established by 1990
 During 1990–2000, the Government of India undertook the modernisation
programmes of the rice mills in India for quality upgradation of rice and rice
bran
 Until 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 the last fifteen years
 In 2001, SEA took a six-member delegation to Japan to study the latest
technology in RBO processing
35
 Rice Bran Oil - Indian Scenario (2/3)

 From the year 1995 onwards, RBO started to be used in Edible

purpose in Vanaspati & Blended Oil
 In the year 2001, the Government of India sponsored Research and
Development for developing cost-effective pre-treatment
technologies for Physical Refining of Rice Bran Oil
 Regional Research Laboratory, Trivendrum developed a pre-
treatment process of simultaneous degumming and dewaxing
 Indian Institute of Chemical Technology, Hyderabad developed
enzymatic degumming process
 Grant-in-aid assistance was given by the Government of India to set
up Physical Refining Units based upon newly developed technologies
 Over 40 Units were set up in the recent past throughout India with
the grant-in-aid assistance from the Government
36
 Rice Bran Oil - Indian Scenario (3/3)
 From the year 2005 onwards with the awareness campaign it was accepted as
a very good healthy cooking oil
 In the year 2008, Health Ministry amended Food Standards of Refined Rice
Bran Oil – Unsap Matter raised from 3% to 4.5% to maintain oryzanol
 By 2010 – Many RBO & Blended RBO Brands entered into the market
 SEA has organized number of seminars, workshops and Doctors and
Dietitians meet in last 15 years to create awareness
 SEA conducted mass “consumer awareness” campaigns from April 2013 to
highlight virtues of Rice Bran Oil which achieved tremendous success
 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’
 I can now proudly say that, India produces the best quality of Rice Bran Oil
and has emerged as the largest producer of this oil in the world

37
 Leading Manufacturers & Marketers of
Refined Rice Bran Oil in India

Note: This is not an exhaustive list and there are many more producers / marketers of Refined Rice Bran Oil 38
 Benefits to the Nation in Promoting RBO

 It can help in protecting the health of the 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 the people
 It helps to reduce the imports of edible oil and at the same
time helps to bridge the demand-supply gap of edible oils in
India when its full potential 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
39
 Status of Rice Bran Oil in the World

 Japanese call it Heart Oil

 In USA, it is being sold as World’s Healthiest Oil

 In Europe, RBO has acquired the status of Functional

Food

 It is accepted as a Premium Cooking Oil in Japan,

Thailand and in India

40
 Way Forward

 Identify the ways and means to explore full potential of RBO

 Create awareness and educate people the Health benefits of

Rice Bran Oil

 Focus on value added products from Rice & its by-products

 Finalisation of the Codex standards for RBO

 Bring all Rice producing countries under umbrella of IARBO

 Share information and statistical data on Rice Bran Oil

 Create a dedicated website for RBO under IARBO

41
 And So , To Conclude . . .

Nature’s 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”!

42
 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: Dr.B.V.Mehta ppt / IARBO 16th -17th May, Wuhan, China// Word// Presentations

43