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F&B SPECIALS

Indian sunflower oil industry needs to aim high
Saturday, 26 May, 2007, 08 : 00 AM [IST]
Gireesh Babu, Mumbai
used vegetable oil as cooking medium in the world, is increasing in India in the recent years. More companies are focusing on the production and branding of Sunflower oil with the latest technologies to refine the raw materials.

Modern technologies which are time-saving with lesser cost for processing have created a better arena for the companies to provide quality products. The importance of standard qualities for processing is high in this sector, as the product is also known for its health contents, mainly Vitamin E.

The technologies introduced by foreign machinery manufacturers, like Alpha level refining technology and Belgian technology are widely used by the Indian companies in Sunflower oil refining. The Alpha level continuous refinery technology, which is designed to handle the refining process from Neutralisation, Bleaching, Deodourisation and De-waxing to Packing, can reduce the time for processing considerably.

"Some 10 years ago, each of these technologies was handled separately, in a stage wise method consuming maximum 24 hours time for completing the process. Now, with the Alpha level technology, we are able to complete the process within 16 hours," said Khimji Satara, CMD of the Mumbai-based Meghdoot Oil Mills.

Similarly, the Belgian technology is also designed as automatic and continuous refining device for processing in order to maintain the highest standards of quality and hygiene. Sunflower oil processing giants like the Tamil Nadu based Goldwinner are using the technology for better refining quality. Desmet technology, devised by Desmet Ballestra with its operations mainly in South America, is another technology used by the oil refineries in India for processing Sunflower oil. Desmet Ballestra is a world-class engineer of plants to process oils and fats, and is one of the leading suppliers of vegetable oil refining and biodiesel technologies.

"These technologies also reduce the cost involved in the refining process with its lesser consumption of energy at the time of processing. The process is also cost-effective as the time consumption for refining is less and at the same time a good quality of end product is ensured," said a source from Liberty Oil Mills.

Around 80% of Sunflower seeds' value comes from oil. The seeds have to be crushed to remove the hulls and these hulls are used to produce steam to power the plant. For every 100 pounds of seed, about 40 pounds of oil, 35 pounds of high protein meal, and 20 to 25 pounds of by-products are produced with the help of modern technologies.

The Sunflower oil market in India is increasing by which the demand and supply gap of the raw material is huge. The raw material production in the country satisfies only 20% of the manufacturing needs of Indian companies. The remaining 80% of raw material for the country is imported from countries like Argentina and Malaysia, which are the front-runners in Sunflower seed production. The products manufactured with this imported seeds will affect the price of the end product in a considerable way, due to the various expenses in importing, including the changes in the dollar-rupee value.

However, states like Karnataka, Andhra Pradesh, Maharashtra and Haryana are slowly emerging as major hubs for the Sunflower seed production. The first ever venture to develop Sunflower seed has been initiated by ITC Zeneca India, which has changed its name to Advanta India. The company is currently the market leader in Sunflower seed business.

South India is considered as the major market for Sunflower oil, where brands like Sundrop, GoldWinner, Gemini, Gold Drop and Crystal, Fortune, Godrej Sunflower Oil and Godrej Shakti have their strong foothold. Major manufacturers like GoldWinner, Agro Tech Foods and Adani Wilmer have already announced their plans to explore more into south Indian states because of the increased market size and the availability of raw materials from states like Karnataka and Andhra Pradesh.

However, the oil manufacturers in the country seem to be not much interested in exports, mainly due to the cost inputs to be incurred in competing with global giants in overseas markets. "Currently, the maximum export of Sunflower oil is from 100 to 200 tonnes per month, that also not on a regular basis. There is a good opportunity for the companies in India if they are ready to explore, as the total demand of the product globally will be around 5000-10000 tonnes with a high demand-supply gap existing," said Suressh N Rajan, CEO, Valasha Merchandising Consortium, a Chennai-based Sunflower oil exporting company.

The country, which has its strengths in agriculture and producing quality products, can win the world market by cultivating and processing various types of Sunflower oil seeds, aver these company sources.
 
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