Académique Documents
Professionnel Documents
Culture Documents
Market Potential
The per capita consumption of oil in India is 11.5 kg/year is way below the world average of 18 kg. Even china is at 17 kg. By 2010 the per capita consumption of oil in India is likely to be 15.6 kg. There is huge potential of growth. The demand for edible oils is expected to increase from Oil Year 2004-05 levels of 10.9 Mln. tonnes to 12.3 Mln. tonnes by 2006-07 (two years). This assumes a per capita consumption increase of 4% and a population growth of 1.9% which translates to an overall growth in demand @ 6% p.a. Based on the above assumptions, edible oil demand in the year 2015 is expected to be 21.3 million tonnes.
Total Demand (Mln. Tonnes) Total Area under Oilseeds (Mln. Hectares)
23.4 Yield (Tonnes/hectare) 1.07 Production of Oilseeds (Mln. tonnes) 25.1 Domestic supply of edible oils (Mln. tonnes) 7 Total edible oil imports - (Mln. tonnes) 4.3 Imports as share of demand 39.40%
28
32
1.2
1.4
33.6
44.8
10.1
13.4
5.9
8.3
38.10%
39.50%
Indian Horticulture-Strengths Horticulture Horticulture contributes 28.5% of GDP in agriculture and 52% of export share in agriculture from cultivated area of 8.5% Varying agro climatic conditions permit cultivations of all types of crops found world over Fairly good research infrastructure available through, NRCs, SAUs Seasonal advantage for export to temperate countries Largest producer of banana, mango and cabbage Largest producer and consumer of cashew and spices Increasing role of private sector in research, seed production, PHM & microirrigation equipments, processing and exports
ROLE OF MFPI
(a)Policy support (i)FPI sector delicensed except alcoholic beverages (ii)FPI included in priority sector of lending (1999) (iii)100% FDI on automatic route (iv)Excise duty waived on F&VP (from 2000 01) (v)Income tax holiday for F&VP (from 2004 05) (vi)Customs duty reduced on freezer van from 20 to 10% (from 2005 06) Contd