Puri Oil Mills Seeks PLI Support, Export Push in Budget

Puri Oil Mills, one of the leading mustard oil manufacturers, on Monday urged the government to support the sector through Production-linked Incentives (PLI), establishment of a development board, and resolution of export barriers ahead of the upcoming Union Budget.

The company's Managing Director Vivek Puri, promoter of P Mark Mustard Oil emphasised that mustard oil, a significant component of India's MSME sector, holds substantial potential for expansion to meet growing domestic and international demand.

"Mustard oil is a part of the food processing industry and government support through production-linked incentives is crucial for enhancing domestic manufacturing capabilities and improving exports," the MD told PTI.

India produced a record 12 million tonnes of mustard oilseed in fiscal 2023-24. Industry experts project the market to grow at a Compound Annual Growth Rate (CAGR) of 4.1 per cent from 2024 to 2032, driven by rising disposable incomes, health benefits, and increasing demand from both urban and rural areas.

The MD also called for economic incentives similar to carbon credits being given for sustainable, environment-friendly / energy-efficient businesses.

He highlighted that the traditional 'cold press method' used in mustard oil production avoids heat and chemical solvents, resulting in zero direct carbon emissions during extraction while preserving nutritional quality.

Another key recommendation was the establishment of a 'Mustard Oil Development Board', similar to the Malaysian Palm Oil Promotion Council (MPOPC), to promote Indian mustard oil globally as a healthy and sustainable choice. The proposed board would focus on promoting mustard seed cultivation and encouraging research in value-added products.

However, export opportunities face significant hurdles as the United States and several European countries have restricted the use of mustard oil for human consumption. The US Food and Drug Administration (FDA) has classified it as 'for external use only', restricting sales to cosmetic applications.

"These restrictions hamper Indian mustard oil exports despite the growing South Asian diaspora in these markets. The government should initiate dialogue to resolve this hurdle and implement export-friendly policies," the MD said.

The MD also sought a declaration of an International Year of Mustard Oil, measures against adulteration, and a focus on mustard seed cultivation.

Notably, mustard has 40 per cent oil content, which is significantly higher than other oilseeds.

The Niti Aayog's August 28, 2024, document on "Pathways and Strategies for Accelerating Growth in Edible Oils Towards the Goal of Atmanirbharta" suggests that mustard oil and oilseeds could be the leading solution to this enormous challenge to achieve "Aatmnirbharta" in edible oil production, which is currently the government of India's top priority.

Established in 1933, Puri Oil Mills Ltd operates three manufacturing plants in Punjab, Himachal Pradesh, and Haryana, producing P Mark mustard oil in Indian markets.