Humble Rice Bran Becomes Hot Commodity

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Humble Rice Bran Becomes Hot Commodity
24 Jun 2022
6 min read

News Synopsis

Rice bran has become a highly sought-after commodity in India, which is the world's largest importer of vegetable oils and is attempting to overcome an edible oil shortage caused by global supply disruptions. Rice bran, a byproduct of rice milling, has traditionally been used for cattle and poultry feed. Oil mills have recently begun extracting rice oil, which is popular among health-conscious consumers but has historically been more expensive than rival oils.

Rice bran oil accounts for a small portion of total vegetable oil consumption in India, but it is one of the fastest-growing edible oils, according to industry officials, and production and imports are expected to increase to meet demand.

The recent surge in global edible oil prices, fueled by Indonesian restrictions on palm oil exports and disruptions in Ukrainian sunflower oil shipments, has wiped out rice bran oil's traditional premium over rival oils. This has resulted in an increase in demand for bran oil, which has similar flavour properties to sunflower oil.

As sunflower oil imports from Ukraine fell, consumers began substituting rice bran oil, according to B.V. Mehta, secretary general of the International Association of Rice Bran Oil (IARBO). India typically imports more than two-thirds of its sunflower oil requirements from Ukraine.

TWN Special