The country’s olive oil imports increased over 52 per cent in 2011-12 fiscal on rise in consumption. This growth is despite the weakening of the rupee that has made imports costlier.
Olive oil imports touched 6,485 tonnes against 4,261 tonnes the previous year, said Mr V.N. Dalmia, President of the India Olive Association. The growth trend in imports would be sustained in the current fiscal as consumption is expected to remain strong on rising awareness of health benefits of olive oil, said Mr Dalmia. Rising affordability and increasing exposure to western lifestyles is aiding the consumption trend.
HIGHER MFA CONTENT
Olive oil is considered a healthy cooking medium because of it has a high content of monosaturated fatty acids (MFA) that help reduce risk of heart diseases among others, he said.
Most of the leading brands have increased prices by about 15-20 per cent recently to neutralise the impact of weak rupee. The rupee has weakened 28 per cent against the dollar since April 2011. The fall in rupee against the euro, the currency in which majority of the import billing for olive oil happens, is about 13.6 per cent for the period.
DISCOUNTS WITHDRAWN
“Also the discounts and special offers on products offered as part of the promotional drive last year are being withdrawn or reduced,” said Mr Dalmia, Chairman of Dalmia Continental Pvt Ltd, which markets olive oil in India under the Leonardo brand.
Spain remains the largest exporter of olive oil to India accounting for 53 per cent of the country’s imports, followed by Italy at 42 per cent. Other producers such as Turkey, Greece, Tunisia and the US account for the remaining 5 per cent.
Mr Dalmia said the olive pomace oil, which accounts for 41 per cent of India’s total imports, is witnessing the highest growth among the categories. Olive pomace oil, the cooking grade oil with neutral taste and flavour, is most suitable for the Indian cuisine as it does not change the food taste, Mr Dalmia said.
Olive Pomace oil is produced through solvent extraction method from the olive residue paste after the fruit has been pressed. The highest grade Extra Virgin olive oil, used for salad dressing and flavouring accounts for 19 per cent of the India’s imports and olive oil accounting for the rest, he said.