We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry.
We focus on grains and food industry. current time
Rice Bran Oil Holds a Major Untapped Opportunity for India
A large part of the world’s rice bran oil potential remains unused, presenting a significant opportunity for both the global edible oil industry and rice-producing countries. BV Mehta, Executive Director of the Solvent Extractors’ Association of India (SEA), estimates that the world could produce nearly 8 million tonnes of rice bran oil, while actual output is currently only about 2.4 million tonnes.
Speaking at the International Conference on Rice Bran Oil 2026 in Bangkok, Mehta said this leaves roughly 5.55 million tonnes of potential production yet to be developed. The gap, he argued, highlights the need for greater investment and wider awareness of rice bran as a valuable source of edible oil.
India and China currently dominate global rice bran oil production. India produces around 1.1 million tonnes annually, compared with approximately 0.74 million tonnes in China. Yet even India, despite its strong position, is using only part of its available potential.
India is expected to produce about 230 million tonnes of paddy and 154 million tonnes of rice in 2025-26. This could generate nearly 13.1 million tonnes of rice bran, enough to support around 2.3 million tonnes of rice bran oil production. With current output at only about 1.1 million tonnes, nearly 1.2 million tonnes of potential remains untapped within the country.
The gap has widened despite considerable growth in the availability of rice bran. India’s estimated oil potential has increased from around 1.6 million tonnes in 2016-17 to 2.3 million tonnes in 2025-26. Actual production, however, has risen much more slowly, from roughly 0.98 million tonnes to 1.1 million tonnes.
Closing this gap will require improvements across the entire value chain. Mehta has called for changes in the tax structure, including bringing de-oiled rice bran under the 5% GST bracket and reducing GST on rice bran fatty acid distillate from 18% to 5%. Such measures could improve the economics of processing and remove existing tax-related distortions.
Greater research into low-lipase rice varieties, modern milling facilities and incentives for stabilising bran immediately after milling are also needed. Better stabilisation can improve both the quantity and quality of bran available for oil extraction.
A stronger rice bran oil industry could offer benefits beyond edible oil production. Greater use of this by-product can create additional value from paddy, potentially improving returns for farmers without pushing up the price of the crop. For India, unlocking this domestic resource could also help reduce reliance on imported edible oils and strengthen the country’s overall edible oil security.
