The majority of cottonseed oil produced in India is consumed by Gujarat, and 60 per cent of the consumers who buy this edible oil are either from the upper middle-class or from the middle-class, said Angshu Mallick, CEO and MD, Adani Wilmar.
“About 80 per cent of the cottonseed oil is consumed by households in Gujarat, when the state produces only 26 per cent of the cottonseed oil in the country. Another 15 per cent is consumed by Maharashtra, with hardly any consumption in other states,” said Mallick while addressing the 5th SEA-AICOSCA Cottonseed, Oil & Meal Conclave 2024 here on Saturday.
Gujarat, Maharashtra and Telangana account for 63 per cent of the cottonseed oil produced in the country. There are 96 cottonseed oil brands in India, of which 70 are from Gujarat, 23 from Maharashtra and five in Karnataka. “About 78 per cent of the cotton seed oil is sold in urban markets. For Gujarat, this figure is 68 per cent because the state’s rural areas are well developed and have purchasing power,” he said while making a presentation at the two-day conclave.
“About 60 per cent of the consumers who buy cottonseed oil are either from upper middle-class households or from the middle-class. They have the power to pay and when cottonseed oil was costlier than most other oils, people continued to pay,” he said.
NK Proteins, which is one of the largest brands in the cottonseed oil category, said lack of cotton crop expansion has prevented brands from Gujarat from expand into other states. “Limited refining capacities and availability of cottonseed oil have posed hurdles in the growth of this edible oil. We are exploring how the production of cottonseed can increase,” said Priyam Patel, MD of NK Proteins, while speaking at the conclave. “The import duty on cottonseed oil is 50 per cent, while it is just 5 per cent on other edible oils. So, there is no scope for imports,” he added.