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Future of mustard oil consumption - India, world scenario
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Friday, 27 February, 2015, 08 : 00 AM [IST]
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Umesh Verma
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fiogf49gjkf0d As a commercial crop, rapeseed-mustard is predominantly grown in the northern belt of India and its production has been growing over the past decade. Mustard is also an extremely versatile crop and can easily be grown even in dry, arid and scantily irrigated areas. Being strongly pest-resistant, it is a safe and cost-effective crop for Indian farmers to focus on. The world production of rapeseed-mustard has been increasing at rapid rate in several countries largely in response to the continuing increase in demand for edible oils and its products.
With global production touching 14-15 million tonne, it accounts for about 15 per cent of the world's total edible oil production and 30-35 per cent of India’s total edible oil production. When compared to other edible oils, the rapeseed-mustard oil has the lowest amount of harmful saturated fatty acids. It also contains adequate amounts of the two essential fatty acids, ideal ratio of Omega-3 and Omega-6 fatty acids, linoleic and linolenic, which are not present in many of the other edible oils.
During the last few years, the domestic consumption of edible oils has increased substantially and has touched the level 17.5 million metric tonne (mmt) in 2012-13 from 11.6 mmt in 2003-04 and is likely to increase further. The Recommended Daily Allowance (RDA) for oils & fats, according to WHO, is 30 g/day or 11 kg/ annum. Ministry of Agriculture, under National Mission on Oilseeds and Oil Palm (NMOOP), estimates that with per capita consumption of vegetable oils at the rate of 16 kg/year/person for a projected population of 1,276 million, the total vegetable oils demand is likely to touch 20.4 million tonne by 2017.
Veg oil economy - 4th largest
India is among major oilseed growers and edible oil importers and its vegetable oil economy is world’s fourth largest after USA, China and Brazil. The oilseed accounts for 13% of the gross cropped area, 3% of the Gross National Product and 10% value of all agricultural commodities. Considerable regional variance exists in the consumption of various edible oils in the country in accordance with the diverse food habits and tastes and preferences of consumers, and also between rural and urban areas. Among the other edible oils, households in Punjab, Himachal, J&K, Rajasthan, Assam, Bihar, Jharkhand and Uttar Pradesh consume substantial quantities of mustard oil.
The key demand driver, apart from population growth, that is impacting edible oil demand is the increase in disposable income amongst the growing middle class. This reflects the changing pattern of urban lifestyles and greater concern for consumption of healthier edible oils, particularly among urban consumers. Natural processed and cold pressed mustard oil is fast regaining its value as popular edible oil among all sections of society on account of its high nutritive value and medicinal benefits; it is affordable and provides greater health benefits than other edible oils. Ever since mustard oil has been perceived to be healthy oil, recommended by eminent cardiologists, its consumption has been growing at the rate of 20% in the north India.
In India, mustard oil is also used for rub-downs and massages (see Ayurveda). Massage with the oil is thought to improve blood circulation, muscular development and good texture to human skin; the oil is also antibacterial. It is unfortunate that without any conclusive findings on the effect of erucic acid on human health, Indian mustard oil is not allowed to be marketed in international markets. All the experiments so far have been restricted to animals. Exports are negligible, more so to the West, due to the concerns raised with regards to erucic acid. Whatever is exported has to be labelled as 'for external use only.' The Mustard Research and Promotion Consortium, in collaboration with the All India Institute of Medical Services and National Dairy Development Board, had conducted an independent study to ascertain the facts using crude mustard oil. The study did not find any adverse effect on humans. The restrictions on mustard oil are viewed as an attempt by foreign multinational corporations to replace mustard oil with expensive imported edible oils. But for North Indians, mustard oil is not just a cooking medium but it is very much intricately interwoven with their culture.
World trade is low
World’s total mustard-rapeseed production too is on a rising. European Union leads the list of rapeseed producing countries. As the leading producing countries of mustard-rapeseed oil usually produce it to meet their own domestic demand, the world trade in this oil is very low as compared to other edible oils. Canada is the largest exporter of the mustard-rapeseed oil, although Canada’s mustard-rapeseed seeds are genetically modified and oil is chemically treated. Australia follows Canada in the production of seeds. Like production, consumption too has been increasing rapidly. There are countries like China, India, Canada, Japan, Mexico, the US and European Union that consume mustard and rapeseed oil extensively.
Crops like soya bean have numerous value-added products like soy milk, protein, and nuggets. A similar focus on value addition in mustard is urgently required. While crushing mustard seeds, the oil accounts for just one-third; the residual two-thirds is oilcake. With proper research, the residual oil can be processed to produce high quality bio-diesel and can be used for industrial applications, fertilisers and protein isolation, to name a few. This can enable farmers to earn more remunerative prices and encourage them to expand the overall area under mustard cultivation. Moreover, high-end research in the area of protein extraction, suitable for human consumption from oilcake can help in addressing protein malnutrition that is prevalent across the country.
Two key milestones
There are two key milestones which have significantly contributed to the development of edible oil sector in India. The first entailed the setting up of the Technology Mission on Oilseeds in 1986. This gave a thrust to the government's endeavours aimed at augmenting the production of oilseeds. The other milestone that made a significant impact on the present status of edible oilseeds/oil industry is the programme of liberalisation under which the government's economic policy allowed greater freedom to the open market and encouraged healthy competition and self regulation rather than protection and controls. Controls and regulations have been relaxed resulting in a highly competitive market dominated by both domestic and multinational players.
Currently, India imports 50 per cent of its edible oil requirements to meet domestic demand. In the 2012-13 fiscal, the country imported Rs 61,273 crore worth of edible oils. Indian mustard oil has the potential to reduce imports of edible oil and can save valuable foreign exchange. What palm oil is for Malaysia, olive oil for Italy and soya oil for America, mustard oil can be for India. There is a need to have a vision and a plan for this industry. We request the Central government to establish a 'Mustard Oil Development Board' for the integrated development of the mustard oil industry in the country, with focus on higher productivity and value addition.
Mustard oil is one of the common and affordable oil commodities produced in India, especially since imported oil prices are poised to go up due to a falling Rupee and a significant increase in global prices. It is, therefore, imperative to sensitise the masses about indigenous edible oil since it will reduce the dependence of India on edible oil imports and benefit farmers as a whole and the Indian economy as well.
(The author is GM, corporate communications, Puri Oil Mills Ltd)
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