New edible oil variant to debut next yr

The Indian edible oil market is likely to witness the debut of one more variety in January 2008.

Ahmedabad-based Vimal Oil & Foods is planning to introduce 400 tonnes of niger seed oil. The company was approached by the Gujarat Civil Supplies Department, which has formed a cooperative society of tribal farmers of 27 villages from Dang district in Gujarat.

These farmers will supply around 1000 tonnes of niger seeds to the company, which will crush it and market the product under its own brand-name.

"We have formed a cooperative of 27 villages in the district of Dang. This cooperative will supply niger seeds to Vimal Oil & Foods. The company will launch the product in the domestic market by January 2008," said S K Nanda, principal secretary, Civil Supply Department, Gujarat.

"Niger seeds originated from Nigeria and it is being traditionally grown in the district of Dang. The tribal farmers have been using niger seed oil for their daily cooking. There are many advantages of niger seeds.

"The oil has low calories and fat, so it is very good for the heart. Secondly, niger seed farming does not require fertilisers or weeding. It does not need much water and can grow in water-scarce areas also. So the production cost is very less for the farmers," Nanda said.

The remains of crushed niger seeds can be also used as meal for animals as it is very nutritious.

Nanda added that 40 per cent oil can be extracted from the niger seeds.

"This year the production of niger seeds is likely to be around 1000 tonnes and out of that the company will be able to extract around 400 tonnes this year. Nanda is also the secretary of the co-operative from the government side to ensure that the farmers get minimum of Rs 20-22 per kg of niger seeds.

"There are other states like Orissa which grow niger seeds in India. If the product clicks, then we can even consider buying the seeds from these states," said Jayesh Patel, MD, Vimal Oil & Foods. Patel added that there is not a single company in India, which has introduced niger seed oil until now.

"India's annual production of niger seeds is around 90,000 tonnes. Most of the produce is being exported as of now," Patel added. Analysts say that out of the total estimated 125 lakh tonnes of edible oil consumption of India, around 50,000-60,000 tonnes of edible oil is branded.

The target consumer of this low fat oil will be health conscious people. "We will name this product as 'Nirogi' or 'Aayushya'.

It will be a very niche market but the market is there in the country for such products as people are becoming more and more health conscious. They will be ready to pay more for such products," Nanda added.