As one of the world’s largest producers of groundnuts, India has emerged as a significant player in the global groundnut oil market. India is not just known for the huge production but also for the quality of groundnut oil exports. Groundnut oil is valued for its rich, nutty flavor and various health benefits. It makes a popular choice among global consumers.

In order to become more successful and grow steadily, Indian groundnut oil exporters need to develop plans that will help them enhance their global visibility and market reach. This article will explore key strategies for scaling the success of groundnut oil exporters from India.

Current Landscape of Groundnut Oil Exports from India

States Gujarat, Andhra Pradesh, and Tamil Nadu in India lead the nation’s groundnut production. Groundnut oil has made India an important player in the global edible oil market. According to the country stats data, the annual production of groundnuts is more than 10 million metric tons; out of this, a major part is processed to oil.

India exports its groundnut oil to the markets of China, Southeast Asia, Europe, and the U.S., where it is valued for its rich flavor and health benefits. According to Dataversee data, in 2023-24, India exported approximately 680,000 metric tons consisting of 2,561 shipments of groundnut oil. It had met the demands of major premium and bulk markets. Organic and cold-pressed groundnut oils are flying off the shelves worldwide because people are choosing healthier foods for their families. The high demand comes for organic and cold-pressed variants. That indicates the global shift towards healthy consumption.

The Indian government supports its agricultural exporters through initiatives like the Agricultural Export Policy and RoDTEP, which provide financial and logistics help. However, the sector faces challenges such as unoptimized supply chains, international industry competition, and strict quality rules.

Despite challenges, India’s groundnut oil exporters gain an advantage because of their top-quality groundnuts, low production costs, and many different products. India is in a good position to expand its groundnut oil exports further.

The Global Demand for Groundnut Oil

Global demand for groundnut oil has increased because people like its health benefits and multiple uses. It contains good fats, antioxidants, and vitamin E. Its high smoke point and unique flavor make it suitable for cooking, frying, and baking. It serves as a key ingredient in food processing and cosmetics.

• China and Southeast Asia: In Asian cultures, people mostly use groundnut oil to stir frying and deep frying.
  
• Europe and North America: More people following heart-friendly diets based on plant foods. They want organic and cold-pressed groundnut oil more than before.
  
• Middle Eastern Markets (UAE and other markets): People there are using groundnut oil both for making food and personal care products. Currently, it is gaining more traction there.

Growing global preference towards sustainable and natural products increased customer demand for cold-pressed and free-from-chemicals groundnut oil worldwide. Market predictions say the worldwide oil market, which covers groundnut and other cooking oils, will grow 4.83% yearly from 2025 to 2029.

Challenges in Scaling Groundnut Oil Exports

Growing Indian groundnut oil exports has good potential, but many challenges must be handled correctly so that the country can best meet worldwide demand for premium groundnut oil.

a.) Supply Chain Inefficiencies:

Problems with India’s groundnut oil export network include a lack of enough refrigerated storage places and slow-moving transportation routes. When these problems aren’t fixed, food can become unsafe to eat, spoil faster, and many fewer people worldwide will want to buy it.

Bad storage and transportation services make groundnut oil lose its freshness and quality, which worries buyers and forces exporters to spend more money.

b.) Strict Quality Standards:

Our customers worldwide expect groundnut oil that’s certified pure, safe, and meets certain labeling or food safety rules such as India’s FSSAI or America’s USDA.

Every nation has unique rules for bringing in groundnut oil that want testing for chemicals and granting organic permits, pushing companies to spend more on savvy handling and quality checks.

c.) Global Competition:

Indian groundnut oil faces strong competition from cheaper and good-quality products sold by major exporters from Argentina, China, and Brazil. Because they have better farming techniques, they can produce large amounts of oil at low cost and sell more of their product into the market.

d.) Price Volatility:

Market prices for groundnut oil keep changing for several reasons: from unpredictable crop output to weather issues affecting production, combined with how the overall edible oils industry moves worldwide. Changes in groundnut oil prices are a big problem for exporters, making it hard to keep their profits steady and plan years ahead.

Key Strategies for Promoting Groundnut Oil Exports

India’s ability to sell groundnut oil abroad is large, but only by creating special plans and pushing forward with goals can we reach this export potential. If India solves its problems and uses its natural strengths correctly, its traders will do much better selling products worldwide.

1. Improving Quality Standards

To meet top international quality rules, we need to update our equipment and modernize our oil production lines. Getting these quality certifications—organic, non-GMO, and ISO—helps build trust with customers and makes our company more appealing to buyers in Europe, USA and Canada.

2. Market Diversification

Opening new trade relationships in three areas—Africa, South America, and some countries of Middle East—helps reduce our dependence on just a few buyers. Knowing what different groups want and need is what will help businesses grow.

3. Branding and Value Addition

Continuing to make sure people think Indian groundnut oil is both nutritious, high-end, and eco-friendly helps keep it separate from other oil sellers. Making special flavored or infused groundnut oil helps you reach groups of customers who pay higher prices for unique products.

4. Leveraging Technology

Using blockchain technology for supply chain visibility and online business tools helps us sell globally while saving time and money. Technology helps businesses better control their stock levels and connect better with customers.

5. Strengthening Infrastructure

Storing, moving, and harbor upgrades help keep our oils high-quality and cut down on sizeable product losses. By running a smooth logistics system, Indian groundnut oil becomes less expensive to produce and can better compete with others in price-focused business areas.

6. Government Support and Policies

Indian groundnut oil will attract foreign buyers when we offer it with trade benefits, tax breaks, and join international trade agreements. Exerting influence in key markets to get better tariffs will help make our oil outperform other competitors.

Final Words

The Indian groundnut oil industry has strong potential to lead globally in its segment. The increasing global interest in premium groundnut oil makes exporting easier for Indian producers. It can seize opportunities in their favor. Ongoing success in international trade depends heavily on getting accurate data and buyer and supplier insights. Accurate import-export data remains crucial to help groundnut oil exporters recognize market options, examine competition zones, select target markets, and generate informed growth plans for global success.

Dataversee Inc offers a solution to help businesses solve this problem.

Indian groundnut oil exporters will find Dataversee helpful in improving their operations. Our platform delivers live market information and trading updates, plus business insights, so companies can make better choices and improve their export results. You can get data on buyers’ and suppliers’ names, shipment details, trade volumes, etc., with our easy and affordable subscription plans.

Get a free demo and unlock the full potential of your groundnut oil exports.