India Rapeseed Oil Market Outlook, 2028

Rapeseed oil, commonly known as canola oil in some regions, is popular cooking oil in India. In India, rapeseed oil, known locally as "sarson ka tel" or mustard oil, holds a special place in culinary traditions. Derived from the seeds of the bright yellow flowering canola plant, this oil has gained widespread acceptance in Indian kitchens due to its mild flavor and various health benefits. The production and manufacturing of rapeseed oil in India are primarily concentrated in several regions of the country. The highest production of rapeseed oil in India is typically found in the northern states of Rajasthan, Haryana, and Uttar Pradesh. These states have favorable agro-climatic conditions for rapeseed cultivation, with the crop being sown during the Rabi (winter) season. Rajasthan, in particular, stands out as a major contributor to rapeseed oil production due to its vast agricultural land and suitable climate. Manufacturing of rapeseed oil, on the other hand, is not limited to just the northern regions. It is a widespread industry with oil extraction and processing units found across India. States like Madhya Pradesh, Maharashtra, and Gujarat also have a significant presence in the rapeseed oil manufacturing sector. These states benefit from their proximity to both the raw material sources and consumer markets. One of the key government-led initiatives is the "National Mission on Oilseeds and Oil Palm" (NMOOP), launched by the Ministry of Agriculture and Farmers Welfare. NMOOP aims to increase oilseed production, including rapeseed, through the promotion of improved agricultural practices, technology adoption, and better access to quality seeds for farmers. Financial incentives, subsidies, and research and development efforts have been instrumental in driving rapeseed cultivation under this program.

According to the research report "India Rapeseed Oil Market Outlook, 2023-28," published by Bonafide Research, is predicted to expand significantly during the course of the forecast year 2023-2028. In recent years, there has been a growing emphasis on increasing rapeseed oil production and processing in various parts of India due to its economic significance and the versatility of rapeseed oil for cooking and industrial applications. Government initiatives, improved agricultural practices, and technological advancements have further contributed to the growth of the rapeseed oil industry in the country. Moreover, consumer awareness about the health benefits of using vegetable oils like rapeseed oil has been growing steadily. This awareness, coupled with the rising health-consciousness among consumers, has boosted the demand for rapeseed oil, which is considered heart-healthy due to its low saturated fat content. Private sector engagement in the rapeseed oil manufacturing sector has also played a pivotal role. Private companies have invested in modern oil extraction and processing facilities, ensuring higher efficiency and quality control. These investments have improved the overall infrastructure for rapeseed oil manufacturing in the country. In India, the production and promotion of rapeseed oil and other edible oils are overseen by several organizations, both governmental and industry-specific. One of the prominent organizations responsible for the development and promotion of oilseeds, including rapeseed, is the National Oilseeds and Vegetable Oils Development Board (NOVOD). India is a prominent player in both the import and export of rapeseed oil, maintaining a dynamic trade relationship with several countries. When it comes to importing rapeseed oil, India often sources it from nations like Canada and Australia. On the export front, India predominantly ships rapeseed oil to countries in the Middle East and Southeast Asia. Nations like the United Arab Emirates, Saudi Arabia, Singapore, and Malaysia are among the key destinations for Indian rapeseed oil exports. The Middle East, in particular, has a substantial demand for edible oils, and Indian rapeseed oil meets this demand due to its affordability and versatile culinary applications.

The report is segmented on the basis of Nature of Rapeseed oil that is Organic and Conventional. In India, the market for conventional rapeseed oil has traditionally been dominant, owing to its widespread availability, affordability, and versatility in various culinary applications. However, in recent years, there has been a noticeable shift towards the consumption of organic rapeseed oil, reflecting an evolving trend in the country's culinary and health-conscious preferences. The growth of the organic rapeseed oil market can be attributed to several factors. Firstly, increasing awareness among consumers about the potential health benefits of organic products has led to a greater demand for organic edible oils, including rapeseed oil. Organic rapeseed oil is perceived as a healthier alternative due to its production without synthetic pesticides and chemical fertilizers, making it an attractive choice for health-conscious individuals. Additionally the global trend towards sustainable and environmentally friendly food production has also influenced the demand for organic rapeseed oil in India. Consumers are increasingly valuing products that promote sustainable agriculture, support local farmers, and minimize harm to the environment. Moreover, the growing popularity of organic and healthy cooking practices, such as organic farming, veganism, and clean eating, has further boosted the demand for organic rapeseed oil. This shift in consumer preferences has encouraged both established and emerging players in the edible oil industry to invest in organic rapeseed oil production and marketing.


According to the End- Users of rapeseed oils, the report has been categorized into three end -users type; Households, Industrial, and Food Service. In India, rapeseed oil holds a prominent position as versatile cooking oil that enjoys the highest market share for household consumption. Its popularity in households can be attributed to its neutral flavor, high smoke point, and affordability, making it a preferred choice for various culinary applications across the country. Furthermore, rapeseed oil's utility extends beyond household kitchens. It has a significant presence in the industrial sector in the production of industrial lubricants and hydraulic fluids. Its natural lubricating properties, biodegradability, and low environmental impact make it a preferred choice in industries where lubricants are required to meet stringent environmental regulations. In recent times, rapeseed oil has also been gaining traction in the food services sector, including restaurants, hotels, and catering services. Chefs and food establishments are increasingly recognizing its culinary versatility and health benefits, leading to a surge in its use in professional kitchens. Its ability to enhance the flavors of dishes without overpowering them, coupled with its heart-healthy profile, has contributed to its growing popularity among chefs and consumers alike.

According to the Rapeseed oil market, the report is segmented on the basis of distributional channels, which includes Online and Offline distribution of oils. In India, the distribution of rapeseed oil showcases a diverse landscape with various channels catering to consumer needs. Conventional stores, which include local grocery shops and neighborhood markets, continue to dominate the distribution of rapeseed oil. These outlets offer convenience and accessibility to a wide range of consumers, making them a primary source for purchasing this essential cooking oil. Following conventional stores, retail stores, including supermarkets and hypermarkets, have gained significant ground in the distribution of rapeseed oil. This modern retail formats offer consumers a variety of options and brands under one roof, making it easier for shoppers to make informed choices. In recent years, the trend of direct sales from producers or cooperatives has also gained momentum, especially in rural areas where farmers and local producers sell their rapeseed oil directly to consumers. This approach fosters a closer connection between producers and consumers and promotes the consumption of locally sourced and fresh products. Another notable channel that has seen substantial growth is online sales. E-commerce platforms have become increasingly popular for purchasing rapeseed oil in India. Consumers can conveniently browse and order their preferred brands online, and home delivery services make the process even more convenient. The diverse distribution channels for rapeseed oil in India cater to the varied preferences and needs of consumers, ranging from traditional shopping at local stores to modern retail experiences and the convenience of online shopping. This multi-pronged approach ensures that rapeseed oil is accessible to consumers across the country, contributing to its widespread usage in Indian kitchens.



The COVID-19 pandemic had a noticeable impact on the Indian rapeseed oil market, as it did on various other sectors of the economy. During the initial phases of the pandemic, when strict lockdowns and movement restrictions were imposed to curb the spread of the virus, there was a temporary disruption in the supply chain of rapeseed oil. This disruption resulted in challenges related to transportation, labor shortages, and logistical bottlenecks, affecting the smooth flow of goods from production centers to consumers. Additionally, consumer behavior shifted during the pandemic. There was a heightened focus on essential goods, including edible oils like rapeseed oil. As a result, demand for edible oils, including rapeseed oil, saw a surge during the pandemic, as consumers stockpiled essential items amid uncertainties about the availability of goods. This surge in demand and supply disruptions led to temporary price fluctuations in the rapeseed oil market. Prices experienced periodic increases, reflecting the imbalance between supply and demand. However, as the situation stabilized and supply chains adapted to the new normal, the market gradually regained its equilibrium. Furthermore, the pandemic accelerated the trend toward online shopping for essential goods, including rapeseed oil. E-commerce platforms saw increased sales as consumers turned to online channels for their grocery needs, further expanding the distribution channels for this cooking oil.

Considered in this report:
• Geography: India
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• India Rapeseed Oil Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Nature:
• Conventional
• Organic

By End User:
• Household
• Industrial
• Food Service

By Distributional Channel:
• Conventional Store
• Hypermarket/Supermarket
• Direct Sales
• Online
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Rapeseed Oil Market industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.