The Hindu Business Line : Consolidation seen in edible oils industry

INDIA'S edible oil industry could witness a consolidation of domestic and international players, especially among those involved in overseas trades, according to a senior industry member.

At least 15 entities, 7-8 of them domestic players and the rest foreign, could end up controlling 50 per cent of the output of oilseeds from India,'' according to Mr Sandeep Bajoria, President, Organising Committee, Globoil India .

"This is going to happen faster in imported and exported oil and oilseeds; palm leading the list followed by soyabean, castor, groundnut and rapeseed. Consolidation would be negligible among players involved in safflower and cottonseed,'' he said.

Commodity businesses have been undergoing major changes. This is primarily helped by the national multi-commodity exchanges. "The combined turnover of multi commodity exchanges by 2010 will be in excess of turnover of the BSE and the NSE,'' he said.

Today, the combined turnover of the BSE and the NSE is around Rs 6,000 crore - 7,000 crore, while those of national multi-commodity exchanges are Rs 2,000 crore - 2,500 crore.

Broking firms have evinced interest in commodity trade; banks and financial institutions are now open to lending to commodity sector. Lending for procurement, storage and such activities is opening up. According to Mr Bajoria, the boom in commodity prices last year has partly lead to a change in attitude towards this sector.