India has the potential to produce nearly 2.3 million tonnes (MT) of rice bran oil (RBO) in 2025-26 but is currently producing only around 1.10 MT, leaving an estimated 1.20 MT of untapped potential, the Solvent Extractors’ Association of India (SEA) said at the International Conference on Rice Bran Oil (ICRBO) in Bangkok.
The two-day global conference, held on August 13-14, bringing together stakeholders from the international rice bran oil industry. Representing SEA, its Executive Director Dr BV Mehta presented the association’s vision on “RBO: Driving Global Growth Through the Indian Experience”. Mehta is also Secretary General of the International Association of Rice Bran Oil (IARBO).
According to SEA, India is estimated to produce around 230 MT of paddy and 154 MT of rice in 2025-26, generating about 13.1 MT of rice bran. This volume of bran has the potential to yield nearly 2.3 MT of rice bran oil.
However, actual RBO production has increased much more slowly than the potential. Estimated RBO potential has risen from 1.6 MT in 2016-17 to 2.3 MT in 2025-26, while actual production increased from around 0.98 MT to only 1.10 MT during the same period.
SEA said the widening gap highlights the need to strengthen the entire rice bran value chain, from extraction and processing to refining, consumption and exports.
SEA seeks GST rationalisation
To improve the economics of rice bran extraction and processing, SEA has proposed bringing de-oiled rice bran (DORB) under the 5% GST slab. It has also sought rationalisation of GST on Rice Bran Fatty Acid Distillate (RBFAD) from 18% to 5%, arguing that this could address tax distortions and the inverted tax structure.
At the production end, the association has called for greater research and development support for low-lipase paddy varieties, modernisation of rice-milling infrastructure and incentives for rice mills to stabilise bran. These measures, it said, could improve both the quantity and quality of rice bran available for oil extraction.
SEA has also proposed setting up Centres of Excellence for value addition to rice bran oil refining residues and encouraging the refining of suitable crude rice bran oil into edible-grade oil.
Focus on exports and domestic demand
The association has called for a stable, long-term export policy for DORB. It has also suggested that, where appropriate and subject to quality and regulatory requirements, duty-free imports of edible-grade rice bran from neighbouring countries could be considered to improve utilisation of domestic refining capacity.
However, SEA said policy measures alone would not be sufficient to unlock the opportunity. It called for government and industry-led consumer awareness programmes based on scientific evidence to strengthen consumer acceptance of rice bran oil.
The association stressed the need for coordinated action involving government, research institutions, rice millers, processors, refiners and industry associations.
With India continuing to depend significantly on imported edible oils, SEA said greater utilisation of rice bran could help extract additional value from a domestic by-product of one of the country's major crops and contribute to the country's edible-oil self-reliance efforts.