Saffola, one of the healthcare brands in India, has announced the launch of a television campaign for the newly

introduced Saffola Gold, a blend of Ricebran oil and Kardi oil which has dual benefits of lowering cholesterol and absorbing less oil. Titled Kal Se the ad campaign by McCann Erickson is based on the consumer insight that Men are reluctant health enthusiasts, who shy away from taking the first steps towards a healthy lifestyle by putting it off till tomorrow. The positioning of the campaign, Aaj Se, is on the basis of this insight. The campaign rolled out May ending, across all major TV channels, press and outdoor. Importance of Edible Oils in the Countrys Economy Oilseeds and edible oils are two of the most sensitive essential commodities. India is one of the largest producers of oilseeds in the world and this sector occupies an important position in the agricultural economy and accounting for the estimated production of 28.21 million tonnes of nine cultivated oilseeds during the year 2007-08. India contributes about 67% of the world oilseeds production. Export of oilmeals, oilseeds and minor oils has increased from 5.06 million Tones in the financial year 2005-06 to 7.3 million tons in the financial year 2006-07. In terms of value, realization has gone up from Rs. 5514 crores to Rs.7997 crores. India accounted for about 6.4% of world oilmeal export. Types of Oils commonly in use in India India is fortunate in having a wide range of oilseeds crops grown in its different agro climatic zones. Groundnut, mustard/rapeseed, sesame, safflower, linseed, nigerseed/castor are the major traditionally cultivated oilseeds. Soyabean and sunflower have also assumed importance in recent years. Coconut is most important amongst the plantation crops. Efforts are being made to grow oil palm in Andhra Pradesh, Karnataka, Tamil Nadu in addition to Kerala and Andaman & Nicobar Islands. Among the non-conventional oils, ricebran oil and cottonseed oil are the most important. In addition, oilseeds of tree and forest origin, which grow mostly in tribal inhabited areas, are also a significant source of oils.

Consumption Pattern of Edible Oils in India India is a vast country and inhabitants of several of its regions have developed specific preference for certain oils largely depending upon the oils available in the region. For example, people in the South and West prefer groundnut oil while those in the East and North use mustard/rapeseed oil. Likewise several pockets in the South have a preference for coconut and sesame oil. Inhabitants of northern plain are basically hard fat consumers and therefore, prefer Vanaspati, a term used to denote a partially hydrogenated edible oil mixture. Vanaspati has an important role in our edible oil economy. Its production is about 1.2 million tonnes annually. It has around 10% share of the edible oil market. It has the ability to absorb a heterogeneous variety of oils, which do not generally find direct marketing opportunities because of consumers preference for traditional oils such as groundnut oil, mustard oil, sesame oil etc. For example, newer oils like soyabean, sunflower, ricebran and cottonseed and oils from oilseeds of tree and forest origin had found their way to the edible pool largely through vanaspati route. Of late, things have changed. Through technological means such as refining, bleaching and de-odouraisation, all oils have been rendered practically colourless, odourless and tasteless and, therefore, have become easily interchangeable in the kitchen. Newer oils which were not known before have entered the kitchen, like those of cottonseed, sunflower, palm oil or its liquid fraction (palmolein), soyabean and ricebran. These tend to have a strong and distinctive taste preferred by most

traditional customers. The share of raw oil, refined oil and vanaspati in the total edible oil market is estimated at 35%, 55% and 10% respectively. Major Features of Edible Oil Economy There are two major features, which have very significantly contributed to the development of this sector. One was the setting up of the Technology Mission on Oilseeds in 1986. This gave a thrust to Government's efforts for augmenting the production of oilseeds. This is evident by the very impressive increase in the production of oilseeds from about 11.3 million tonnes in 1986-87 to 24.8 million tonnes in 1998-99. There was some setback in 1999-2000 because of the unseasonal rain followed by inclement weather. The production of oilseeds declined to 20.7 million tonnes in 1999-2000. However, the oilseeds production went up to 27.98 million tones in 2005-06 and was 24.29 million tonnes during 2006-07 oil year. As per the 3rd advance estimate by Ministry of Agriculture dated 22.4.08 the production of nine major oilseeds is estimated to be about 28.21 million tonnes during 2007-08. The other dominant feature which has had significant impact on the present status of edible oilseeds/oil industry has been the programme of liberalisation under which the Government's economic policy allowing greater freedom to the open market and encourages healthy competition and self regulation rather than protection and control. Controls and regulations have been relaxed resulting in a highly competitive market dominated by both domestic and multinational players.

The Indian edible oil industry is expected to grow at a rate of 6 percent annually over the next five years, said Rabo India in its latest research report. India relies heavily on imports to meet over 50 percent of domestic edible oil requirements. Through the years, Indias domestic production of oilseeds has not grown in line with edible oil demand. Lower levels of oilseed production have resulted in low capacity utilisation. Key highlights
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India is the fifth largest producer of major oilseeds in the world while the domestic edible oil market is estimated at USD 15 billion India is expected to import 9 million tonnes of edible oil in 2009/10 Palm and soy oils constitute more than 95% of total edible oil imports Increasing trend of consumer shift towards branded/packaged oil. Branded oil segment in India is annually growing at the rate of 20%, with sunflowers and soy oils leading the market

Domestic oilseed production not going to meet demand The gap between demand and production of edible oil in India has increased sharply in recent years. Since 2000-01, production of oilseeds grew at the rate of 4.7% per annum, but edible oil consumption increased at the rate of 6.5% per annum. Additionally, further increase in areas under oilseed cultivation is a challenge due to lack of arable land and competition from grains and other cash crops. "Under normal circumstances, oilseeds compete with food grains for acreage. However, due to government policies favouring production of competing crops over oilseeds, a higher share of irrigated land has gone to grains and cereals crop, said Pawan Kumar, Rabo India Analyst. He further added, Low quality seed, low access to inputs, poor farming practices, and the fact that much of India's oilseed crop is cultivated in unirrigated areas is the reason for oilseed productivity to be lower than the global average.

Notably, Indias annual current per capita consumption of about 12.7 kilogrammes is well below the world average of 20 kilogrammes, thus providing growth opportunities for the Indian edible oil industry. These opportunities have attracted investments from some of the worlds leading global players. Consumers shift towards cheaper oils The domestic prices of various edible oils are largely correlated. Palm oil, being the cheapest oil, impacts the price movement of other oils. Palm, soy and rapeseed (mustard) together account for 73% of edible oil consumption in India, with palm oil accounting for 44% of total consumption. Market share of soy & palm oils have gained significantly over the years, due to increased access to imports. The strong growth of soy and palm oil consumption reflects Indian consumers sensitivity to prices. Non-packaged oils are estimated to account for nearly 50% of consumption in both urban and rural markets. However, the development of the retail sector in India, backed by rising income levels, has provided an opportunity to sell branded packs especially in the urban markets. The branded segment is growing at 20% annually with sunflowers and soy oils leading the market. Imports of palm & soy oil increasing The failure of the Indian monsoon in 2009, and the resulting crop losses are likely to raise the vegetable oil import needs in 2010. This, in turn, will further impact domestic edible oil prices. High prices of domestic oilseeds make it economically viable to import cheap crude oil from origin and refine it at Indian ports. It is expected that India will import around 9 million tonnes of edible oil this year, noted Mr. Kumar who authored the report. He further added, As reliance on imported palm and soybeans is increasing, players are actively looking for plantation acquisition or development at a global level. The step to integrate backward will increase the profitability of industry players in the long term. Global palm & soybean prices impacting domestic prices The domestic oil prices in India move largely in line with international price movements, especially for the oils which India imports. To conclude, the Indian Edible oil industry is expected to grow 6% annually, and reach 20 million tonnes of consumption by 2015. Due to increasing demand and lower production, India will continue to depend on imports going forward.