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Approximately 70% of the world's potential for rice bran oil remains unutilized, a significant opportunity that demands further exploration, according to BV Mehta, Executive Director of the Solvent Extractors’ Association of India (SEA).
Speaking at the 'International Conference on Rice Bran Oil 2026' in Bangkok, Mehta highlighted a global potential for approximately 8 million tonnes (mt) of rice bran oil. Currently, worldwide production stands at 2.4 mt, indicating an untapped capacity of around 5.55 mt. 'It is important that the world is made aware of the huge potential of untapped opportunity of 5.55 mt of rice bran oil, which needs to be fully explored,' he emphasized.
India and China are identified as the leading global producers of rice bran oil, with India contributing around 1.1 mt and China 0.74 mt. Despite its prominent position, India also possesses considerable untapped potential, estimated at 2.3 mt in total, meaning 1.2 mt is yet to be realized from its current production. While Indian efforts are commendable, there remains substantial work to be done.
Mehta projected India's paddy production for 2025-26 at approximately 230 mt, translating to 154 mt of rice. This volume of rice is expected to yield about 13.1 mt of rice bran, offering the potential to produce nearly 2.3 mt of rice bran oil. With current production at 1.10 mt, India's untapped potential alone is estimated at 1.20 mt.
The potential for rice bran oil in India has grown notably over the past decade, from 1.6 mt in 2016-17 to 2.3 mt forecast for 2025-26. However, actual production has increased at a much slower pace, from about 0.98 mt to 1.10 mt over the same period. This indicates that while India generates more rice bran, a significant portion of its oil potential remains unlocked.
To fully exploit this potential, Mehta recommended a coordinated value-chain approach. Key measures include improving the economics of rice bran extraction and processing, reducing the Goods and Services Tax (GST) on de-oiled rice bran to 5%, and rationalizing the GST on rice bran fatty acid distillate from 18% to 5% to correct tax distortions. He also called for enhanced research and development for low-lipase paddy varieties, modernization of rice-milling infrastructure, and incentives for bran stabilization at rice mills. These steps would improve both the quantity and quality of bran available for oil extraction.
Furthermore, Mehta noted that developing value-added products from rice bran and its oil could benefit farmers by securing better prices without increasing paddy costs. Increased domestic production of rice bran oil in India would also significantly reduce the country's reliance on imported edible oils.
Source: BusinessLine