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In 2024, India has reinforced its position as the world’s largest importer and a key force in the global edible oil market. As a major player, any policy change in India can have widespread impacts on the industry.

In September, India introduced significant policy measures to reduce its reliance on imported edible oils and support its domestic oilseed farmers. A key component of this approach was an increase in the Basic Customs Duty on imported edible oils, aimed at encouraging local production.

The duty on crude soybean, palm, and sunflower oils rose from 0% to 20%, while refined oils saw an increase from 12.5% to 32.5%, resulting in an effective duty of 27.5% on crude oils and 35.75% on refined oils. These adjustments are intended to stabilize oilseed prices and ensure fair compensation for Indian farmers.

The Government of India launched the National Mission for Edible Oils - Oil Palm (NMEO-OP) in August 2021. The mission is committed to escalating oil palm cultivation and elevating Crude Palm Oil production to 11.20 lakh tonnes by 2025-26.

The government has also launched the National Mission on Edible Oils—Oilseeds (NMEO-Oilseeds), a long-term initiative running from 2024 to 2031. The mission seeks to nearly double oilseed production by 2030, reducing India’s import dependency from 57% to around 28%. By fostering greater self-sufficiency, this strategic push aims to stabilize domestic prices and bolster food security, shielding India from the effects of global market fluctuations.

The Mission also targets to increase domestic edible oil production to 25.45 million tonnes by 2030-31 meeting around 72% of our projected domestic requirement. From January to September 2024, India’s vegetable oil imports fell by approximately 2.5% year-on-year, to 12.0 million tons, compared to about 12.32 million tons in the same period of 2023 (as shown in Table below). This decline is due to increased oilseed production from expanded cultivation and improved yields through advanced seed technology and intercropping methods. Over this period, palm oil imports decreased to 5.06 million tons, a 2.1% year-on-year drop, largely driven by reduced supplies from Indonesia.

Meanwhile, soft oil imports saw a 3.0% year-on-year increase, totaling 5.67 million tons. Soybean oil imports fell by 8.6% to 2.80 million tons, while sunflower oil imports rose by 15.3% to 2.88 million tons, spurred by improved supply from the Black Sea region. Consequently, palm oil’s share in India’s total vegetable oil imports decreased to 53.8%, while soft oils rose to 46.1%.

The reduced vegetable oil imports have been driven by a combination of supply constraints and demand dynamics. Changes in import duty policies have influenced purchasing behavior, with some duties adjusted to manage domestic prices. However, high international prices and a weakened rupee against the US dollar have made imports less attractive, further limiting purchasing activity.

India’s domestic vegetable oil production reached 7.1 million tons from January to September 2024, with projections of 10.5 million tons by year end. At the same time, the country's oils and fats consumption through September 2024 stood at 19.3 million tons, with a forecasted annual total of around 26 million tons. While overall palm oil imports into India have declined as of September, Malaysian palm oil exports to India have remained robust.

From January to September, India imported 2.46 million tons of palm oil from Malaysia, up from 2.26 million tons in the same period in 2023 (as shown in Table). Malaysian suppliers have effectively met Indian demand, capitalizing on the supply constraints in Indonesia and competitive pricing. This proactive approach has solidified Malaysia's position as a leading exporter to India, underscoring its growing importance within the global palm oil market.

By the end of 2024, India’s total oils and fats imports are expected to reach approximately 15.9 million tons, with palm oil constituting a significant portion. Total palm oil imports are forecasted at 8.8 million tons, reflecting a 7% decline year-on-year due to reduced supplies from Indonesia and Thailand. Nevertheless,

Thailand’s recent temporary ban on crude palm oil exports, imposed due to reduced production from drought and plant diseases, India, a major buyer of Thai palm oil, may now turn to Malaysia to bridge this gap.

Thus FOIC 2025 technical conference will be a total focus on preparing India for next challenges in technological innovation, sustainability and making India a self-sufficient in edible oil production through newer crop cultivation, food habits and bioscience, biodiversity, value added products, processing & sustainability, food quality and contaminants & adulteration etc.

Fats and oils provide a great deal of functionality, whether it’s the shortening in a laminated pastry or the frying oil that cooks a donut. Removing partially hydrogenated oils was a major challenge nearly 10 years ago, but since then, functionality has come a long way. Today, customer and consumer demands have bakers looking for their fats and oils to do more than just provide structure and flavour.

The market for customers’ products’ functionality, and flavour is of the utmost importance to all. Those demands can be fat and oil solutions that are sustainably sourced, for longer shelf life or reduced saturated fat content.

When industries are seeking something a little extra from their fats and oils, there are several trends that stand out and align with other trends in the food industry.

Beyond functionality and flavour, some manufactures  are interested in nutritional aspects such as reducing or eliminating saturated fats; other seek sustainability. In contrast, nearly all manufacturers are focused on sensory aspects such as odour, colour and the texture imparted by a fat or oil system.

 

Fats and oils, especially those derived from palm oil, are ingredients that can often be vulnerable to harmful sourcing practices, so sustainability is top of the mind for manufacturers as they try to meet consumer and retailer demands as well as goals set forth by their own leadership teams. 

 

Nutrition is another aspect of fats, which have endured their time as the demonized macro nutrient on the block. These nutrition benefits can be increasing omega-3 fatty acid content or reducing saturates. 

 

Some may require organic certification which typically involves expeller pressing the oil rather than chemically extracting the oil from the source, for which the refining, bleaching, deodorizing and winterizing steps are different for organic fats and oils versus conventionally made fats and oils.”

 

For improved product quality, industry is looking for ingredients that extend the shelf life and quality of a finished product. Since fat is sensitive to oxidation, it makes sense that bakers would search for those ingredients that carry some shelf life extension capabilities.  

 

However, the journey of fats and oils in bakery/speciality fats applications has undergone a remarkable transformation due to technological advancements and changing consumer preferences.

Traditionally, fats and oils such as butter and margarine have been the primary choices for bakery formulations. These fats imparted rich flavours, tender textures, and extended shelf lives to baked goods, setting the standard for quality and taste. However, as the demand for healthier, sustainable, and functional ingredients surged, the bakery industry witnessed a paradigm shift in fat and oil processing technology.

Advancements in technology have revolutionised every aspect of the fats and oils used in bakeries, from sourcing to processing and utilisation. Manufacturers now have access to a diverse range of specialised oils and fats tailored to meet specific application requirements. Whether it's high-oleic sunflower oil for enhanced stability or fractionated palm oil for improved texture, the options available to bakery professionals are vast and varied.

 

:Understanding the Role of Fats and Oils in Bakery Products:

To summarize, Fats and oils serve multiple functions in baking, including:

 

1. 1. Texture Enhancement: Fats contribute to the texture of baked goods by providing moisture, tenderness, and mouthfeel. They help create a desirable crumb structure in bread, pastries, and cakes.
2. 2. Flavour Development: Fats add richness and flavour to baked goods, enhancing their taste profile. Butter, in particular, is prized for its distinctive flavour, while other fats can be tailored to achieve specific flavour profiles.
3. 3. Shelf Life Extension: Fats and oils act as natural preservatives, helping to extend the shelf life of bakery products by preventing staleness and oxidation.
4. 4. Dough Handling: Fats play a crucial role in dough handling and processing, affecting factors such as dough elasticity, machinability, and shaping.

:Innovations in Edible Fat and Oil Technology:

The bakery industry has witnessed a wave of innovations in edible fat and oil technology, driven by consumer demand for healthier, sustainable, and functional ingredients. Some notable advancements include:

1. 1. Plant-Based Alternatives: With the rise of plant-based diets, there's been a surge in demand for plant-based fats and oils as alternatives to traditional animal-derived fats. Coconut oil, palm oil, avocado oil, and olive oil are among the popular choices. These plant-based fats offer health benefits, such as lower saturated fat content and higher levels of unsaturated fats.
2. 2. Reduced Trans Fats: The technological advancements have led to the development of alternative fat sources and processing methods that minimise trans-fat content while maintaining product quality.
3. 3. Functional Fats: Functional fats with specific health benefits, such as omega-3 fatty acids, medium-chain triglycerides (MCTs), and conjugated linoleic acid (CLA), are gaining traction in the industry. These fats offer potential health benefits, including heart health, weight management, and cognitive function, making them attractive ingredients for health-conscious consumers.
4. 4. Microencapsulation Technology: Microencapsulation technology is being utilised to encapsulate fats and oils, allowing for controlled release and targeted delivery of flavour, nutrients, and bioactive compounds in bakery products. This technology enhances flavour retention, shelf life, and nutritional value while minimising oxidation and off-flavours.

 

:Emerging Trends and Future Prospects:

The emerging trends are poised to shape the future of edible fat and oil technology in the bakery industry:

 

1. 1. Sustainability: Sustainability considerations, including responsible sourcing, eco-friendly production methods, and waste reduction, will drive innovation in edible fat and oil technology. Manufacturers will increasingly focus on sustainable sourcing practices and renewable energy solutions to minimise environmental impact.
2. 2. Health and Wellness: As consumers continue to prioritise health and wellness, there will be growing demand for functional fats and oils with specific health benefits. Bakery products fortified with omega-3s, MCTs, and other functional fats will appeal to health-conscious consumers seeking nutritious options.
3. 3.Personalisation: With advancements in technology, personalised nutrition solutions tailored to individual preferences and dietary needs will become more prevalent. Customised fat and oil blends formulated to meet specific nutritional requirements and taste preferences will gain popularity in the bakery sector.
4. 4. So also .. Few of the principles of green chemistry needs to be followed in  developments in the field of Fats and Oils industry ; Few of them are:

 

- Design for Energy efficiency - choose the least energy -
intensive chemical route, avoid  too much heating & cooling,
as well as be precise with pressurised and vacuum conditions, 

- Use of renewable feedstocks - raw material traceability ,
Extended producers  Responsibility (EPR)

             - Waste prevention

- Designing safer chemicals and process

- Safer solvents and  auxiliaries in F&O Industry

- Real time pollution control & Net Zero technologies.

             

Furthermore, the emphasis on clean label ingredients reflects a broader shift towards transparency and authenticity in food products. Consumers are increasingly seeking products with simple, recognisable ingredients, free from additives and preservatives. As such, bakery manufacturers are poised to embrace clean label formulations, leveraging natural and minimally processed fats and oils to create baked goods that resonate with discerning consumers.

 

In this dynamic landscape, staying abreast of emerging trends and embracing innovative technologies will be paramount for manufacturers seeking to maintain their competitive edge. By harnessing the power of technology and creativity, fast & oil manufacturers can continue to captivate consumers with a diverse array of delicious, nutritious, and sustainable baked goods that redefine the art of baking for generations to come.

 

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Few questions I always faced in many of my panel discussions in conferences or otherwise… There are 5 popular questions on edible oil use and consumption/ misconceptions etc.. Here is what I answered in forum discussions… however, I take it amongst the most knowledgeable forum of experts and request all of you to share your views for larger interest of edible oil communities as well as few of our confused consumers;

Hope we all make it a healthy debate..

First of all, let us look into what can be defined as healthy edible oil?

A healthy oil should be cholesterol (vegetables/ seed oil hardly contains it) - and trans-fat-free, low in saturated fatty acids (SFA), and high in monounsaturated fatty acids (MUFA) and polyunsaturated fats (PUFA). It should ideally offer a balanced ratio of essential fatty acids, omega-6 (n-6) and omega-3 (n-3), and a high smoke point (more than 200°C). Having defined it in so many words, let us examine the most common doubts in consumer’s mind… The rest of the discussion is in the attached document.

1. *Is palm oil bad for health*

Palm oil as such cannot be consumed directly as it contains 20% solid fat...i.e. palm stearin fraction... once the palm oil is refined and gone through fractionation process, we remove that 20% solid fraction and the oil after fractionation is known as Palm Olein/Super Olein depending the number of stages of fractionation. This Palm-olein is good for consumption : blended in other refined oil or refined olein as such. In fact, the real issue is that Palm oil requires huge forest area to cultivate and forest are being cut ... thus creating an environmental issues... (deforestation etc) However RSPO now available and out of total 215 MMT (estimated 2023) of global edible vegetable oil consumption ; 77 MMT is palm Oil.. so also, in India, our of total edible oil consumption is of 18 to 20 MMT oil, Palm oil consumption is 13 to 15 MMT.... almost hooping 70% ... so how can it be bad for health… what is important as to what life style you are maintaining etc. Palm oil is an excellent choice for many cooking applications; It offer the benefits like, Remain stable at high temperature, retains the natural flavour of food, produces less smokes, splatters, and foam, leaves less gummy residue in kitchen wall and utensils, less absorption of oil in food, a similar property like Rice bran oil…

2. *if yes, why govt is not banning it*?

Answer to this question is above... so no question of banning at all..

3. *Which is the best edible oil from angle amongst ground nut oil*?

The best oil is , no doubt , Groundnut oil, followed by Rice Bran oil and then comes Kardi, sunflower oil . The refined is always better.. e.g. . Smoke point... it is the temperature of oil when, during frying the oil start generating smoke from pan.... it is a clear indication that oil started deterioration...TMC ( Total polar compounds start increasing, which should not be more than 25%) Lower the smoke point the lowest is the oil shelf life or stability etc e.g. Only pressed/ raw ground nut oil Smoke point is - 160°C but that of refined oil is 240°C *Mind it : while we do deep frying the oil temperature is as high as 325 to 375°C *…

4. *Is olive oil better than ground nut oil*.

Olive oil is best used as salad oil for its nice fragrance... known as extra virgin oil .... but cannot be used as frying oil .. its' smoke point is 190°C In Europe, especially in Italy, it is poured over leafy vegetables, Pizzas, and is very expensive... For frying oil ( which needs to be refined) refined olive oil can be used but it contains high trans fatty acids .... Smoke point is - 243°C

5. One more and popularly misleading propaganda: refined oil is bad for health..!! a strong lobby working against refined oil.. even few of the doctors are confused due to confusing literature available…

Answer is that many of the edible oils cannot be consumed without refining.. such as solvent extracted Oils (soybean oil, palm oil, rice-bran oil, cottonseed oil, rapeseed/ Mustard oil, coconut oil etc).. And expeller oil (groundnut, sunflower oil, mustard oil etc) produced in bulk quantity

6. COLD PRESSED/WOOD PRESSED/ GHANI RAW OIL

Many of my friends, bought a baby expeller and crushing GN to make a raw / pressed oil at home… half knowledge is always dangerous … It is true that cold pressed/ wood pressed, i.e. groundnut, safflower , sunflower oil (becomes hazy after few days due to wax) Olive oil ,all are very expensive oil; are good for health .. but refined oil not harmful as propaganda being made.. Cold press edible is best option, no doubt, but should be consumed immediately without long storage. Remember to consume as quickly as possible the cold press oil… better to buy in small quantities and do not store it for long time

7. are pushing for use of traditional mustard oil over refined oils, citing the skewed ratio of omega 3 and omega 6 fatty acids in the latter as responsible for chronic inflammation, linked to coronary heart disease. Mustard oil had 35-48% erucic acid.. And humans don’t have those effects of erucic acids.” The permissible amount of erucic acid is 7.5mg per kg of body weight. But we don’t consume that amount. Canola oil, a close cousin in the brassica family (mustard), provides similar health benefits while containing less than 2% erucic acid.

8. Balanced omega 3 and omega 6

Omega-3 and Omega-6 are polyunsaturated fatty acids, and their ratio is a crucial health indicator. This balance influences chronic inflammation, linked to coronary heart disease (CHD), diabetes, and certain cancers. Omega-6 fatty acids tend to promote inflammation, while omega-3 fatty acids help reduce it. A high ratio, with more omega-6, is thought to increase inflammation, whereas a balanced ratio reduces it. Some of the edible oils have 50 times omega 6 than omega 3. However, mustard oil, has both the fatty acids in equal amounts, which makes it the perfect pick for health.

8 Smoke point and free radicals

Another problem with vegetable oils is their smoke point, Whenever oils are heated for consumption, by the time they start producing smoke and vapours, the polyunsaturated fatty acids (PUFA) in them break into free fatty acids which when consumed, aid the production of free radicals in the body. These free radicals are carcinogenic and over time can lead to various cancers. However, the edible oil, which was traditionally used for frying and cooking locally, has a high smoke point which prevents the breakdown of fatty acids into free fatty acids.

9 Which oils to use for frying?

For home frying, oils that contain many monounsaturated fatty acids (MUFA) and a few polyunsaturated fatty acids (PUFA) are best. Rapeseed oil, olive oil , GN oil, safflower oil, Rice bran oil etc are examples of such oils. Monounsaturated fatty acids are more resistant to oxidation under high temperatures. Refined oils can be used for frying because they have a higher smoke point.