Increased Demand for Indian Cold-Pressed Peanut Oil

India is the world’s second-largest peanut (groundnut) producer and thus it does not come as a surprise that the country is also the world’s second-largest peanut oil producer. Peanut oil is used widely in Asia, Africa, and America to prepare foods. Peanut oil has a high smoke point, at 225℃, making it especially well-suited for deep-frying. Unrefined peanut oil has a strong peanut flavor.

This year has not been the easiest year for Indian peanuts. In the southern regions, too much rain lowered the quality of peanuts whereas in the northern regions there was not enough rain. Partly due to these weather conditions, Pristine Foods, a producer of peanut oil, has seen the prices of raw materials rise. In 2018, the price for an 80 kg bag of peanuts was around 4,000 rupees (around 56.31 USD) whereas this year the price is around 7,000 rupees (around 98.57 USD). As a result, the prices of peanut oil have also increased compared to last year, by approximately 30% - 40%.

Another reason for this price increase is the increased demand coming from both the local and the international market. Actually, the demand for refined peanut oil took a big hit this year, with some sources mentioning that the local demand decreased by 40%. However, Pristine Foods mentions that the demand for cold-pressed peanut oil is increasing, both domestically and internationally. Cold-pressed oils are extracted in a controlled temperature setting, making sure the peanuts never reach a temperature higher than 49°C. The peanuts are crushed and pressed without using heat to extract oil. This helps the oil retain many of its valuable nutrients and its peanutty flavor. Furthermore, as refined oils have been treated with heat and/or chemicals, they contain a high percentage of paraffin. Consumers are more aware of the disadvantages of refined oils and this has caused a shift from refined to unrefined oils.

The cold-pressed Indian peanut oil is relatively new to the export market but has witnessed rapid growth over the last 3-4 years. The product is appreciated for its nutty flavor and has become popular domestically and internationally due to increased awareness of the product. Pristine Foods sees the export to the Middle East, Europe, and the US increase annually.