Sunflower (sun) oil prices have risen 35 per cent in the past year due to a dramatic decline in local production, on low availability of seeds.
Sun oil is procured from sunflowers, whose sown area declined by more than 50 per cent this year from 585,000 hectares (ha) last year to 276,000 ha. The level is a third of the last five years’ average of 815,000 ha. Considering the yield at last year’s level, of 529 kg a ha, the total output of sunflower seed, the raw material for sun oil, will show a decline of 53 per cent this year, at 146,000 tonnes from 320,000 tonnes in the previous year.
The crop duration is short, especially in the kharif season. It takes about 80-90 days in kharif, 105-130 days in rabi and 100-110 days in spring. Sunflower, unlike most other crops, is not affected by the season and length of the day. With the exception of freezing temperatures, the sowing can be done in any month.
The dramatic fall in acreage is a cause of worry. India needs to increase sun oil productivity to reduce reliance on imports, said Dorab Mistry, director, Godrej International.
Restaurants and food manufacturers are becoming aware of the health benefits of sunflower oil. The oil can be used in conditions with extremely high cooking temperatures. It may also help food stay fresher and healthier for longer periods of time. Food manufacturers are starting to use sunflower oil in an effort to lower the levels of trans-fats in mass-produced foods.
As a result, consumption in India has risen sharply. In the November 2009-August 2010 period, India imported nearly 530,000 tonnes of the oil to meet demand, similar to the earlier year.
Sun oil competes with soybean in overseas market. If soya oil prices goes up, consumers prefer to sun oil and vice a versa. But, Indian consumers are not so price sensitive, said B V Mehta, executive director of the Solvent Extractors’ Association, a Mumbai-based trade body.