Vegetable Oils and Vanaspati


FDI Inflows to Vegetable Oils and Vanaspati

100% FDI is allowed in Indian vegetable oils and vanaspati industry through the automatic route. Between 1991 and 2007 FDI Inflows to Vegetable Oils and Vanaspati industry in India accounted for 0.12% of total FDI inflows to India.

Vegetable oils and vanaspati industry in India:


The industry of vegetable oils and vanaspati in India produces various kinds of oils such as, coconut oil, olive oil, palm oil, sesame oil, groundnut oil, and soybean oil. The vegetable oils and vanaspati industry in India produces around one lakh tons of vanaspati every month.

The industry manufactures vanaspati by using the facility of captive hydrogen generation. The industry of vegetable oils and vanaspati in India imported around 8.28 lakh tons of crude palm oil for the production of vanaspati in 1999- 2000. The industry imports crude palm oil from Malaysia, Sri Lanka, and Indonesia.

FDI policy for vegetable oils and vanaspati industry in India:


The government of India allows foreign direct investment up to 100% through the automatic route in the vegetable oils and vanaspati industry in India. Further the Indian government in order to increase the flow of foreign direct investment in the industry of vegetable oils and vanaspati has established food parks and has also given exemptions in taxes.

Amount of FDI inflows to vegetable oils and vanaspati industry in India:


The total amount of FDI Inflows to Vegetable Oils and Vanaspati industry in India came to US$ 53.61 million between 1991 and 2007. The total percentage of FDI Inflows to Vegetable Oils and Vanaspati industry in India was 0.12% of the total foreign direct investment in the country during the period 1991 to 2007.

Objective of FDI Inflows to Vegetable Oils and Vanaspati


Measures for boosting Foreign Direct Investment (FDI) to Vegetable Oils and Vanaspati have been undertaken in India with the objective of expanding this sector. The food sector of India is expected to grow significantly in coming years. Foreign Direct Investments would be effective in increasing the production of vegetable oils and vanaspati in India. Moreover better techniques of production and higher efficiency of inputs can be achieved through Foreign Direct Investments (FDI) to Vegetable Oils and Vanaspati.

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