Around 70 per cent of the world's rice bran oil potential remains untapped, leaving scope to produce an additional 5.55 million tonnes, according to BV Mehta, Executive Director of the Solvent Extractors' Association of India (SEA). Mehta presented India's country report at the International Conference on Rice Bran Oil 2026 in Bangkok on Thursday, where he put global rice bran oil potential at around 8 million tonnes against current production of 2.4 million tonnes.
Global supply gap
Mehta said India and China are the major rice bran oil producers globally. India's production stands at around 1.1 million tonnes and China's at 0.74 million tonnes. The 5.55 million tonnes of additional potential represents the gap between theoretical potential of 8 million tonnes and current output of 2.4 million tonnes.
Important that the world is made aware of the huge potential of untapped opportunity of 5.55 mt of rice bran oil, which needs to be fully explored.
— BV Mehta, Executive Director, SEA
| Metric | Value |
|---|---|
| Global rice bran oil potential | ~8 million tonnes |
| Current global production | 2.4 million tonnes |
| Untapped global potential | 5.55 million tonnes |
| India production | ~1.1 million tonnes |
| China production | 0.74 million tonnes |
India's untapped potential
India is estimated to produce around 230 million tonnes of paddy and 154 million tonnes of rice in 2025-26, Mehta said. This translates into an estimated 13.1 million tonnes of rice bran, with the potential to produce nearly 2.3 million tonnes of rice bran oil. India currently produces only around 1.10 million tonnes, leaving an estimated 1.20 million tonnes of untapped potential.
| India rice bran oil (2025-26) | Value |
|---|---|
| Paddy production estimate | ~230 million tonnes |
| Rice production estimate | ~154 million tonnes |
| Rice bran generation estimate | ~13.1 million tonnes |
| Rice bran oil potential | ~2.3 million tonnes |
| Current rice bran oil production | ~1.10 million tonnes |
| Untapped potential | ~1.20 million tonnes |
Slower growth in actual extraction
Mehta said the potential has grown significantly over the past decade, climbing from 1.6 million tonnes in 2016-17 to 2.3 million tonnes in 2025-26. Actual rice bran oil production has risen much more slowly, from around 0.98 million tonnes to 1.10 million tonnes. While India is generating more rice bran, a substantial part of its oil potential remains to be unlocked.
Policy and infrastructure asks
Unlocking this potential requires a coordinated value-chain approach, beginning with better economics for rice bran extraction and processing, Mehta said. He called for:
- Bringing de-oiled rice bran under 5 per cent GST.
- Rationalising the GST on rice bran fatty acid distillate from 18 per cent to 5 per cent, addressing tax distortions and the inverted tax structure.
- Greater research and development support for low-lipase paddy varieties.
- Stronger and modernised rice-milling infrastructure.
- Incentives for bran stabilisation at rice mills.
These steps can increase the quantity and quality of bran available for oil extraction, he said.
Trade implications
Value-added products from rice bran and rice bran oil can help farmers receive better prices without raising the price of paddy, Mehta said. He added that increased production of rice bran oil in India will reduce the country's dependence on imported edible oils — a key consideration for a market that relies heavily on overseas supplies.
Mehta said Indian efforts are relatively better, but still a lot needs to be done. The comments at the Bangkok conference underscore the supply-side opportunity for rice bran oil, a commodity whose global potential remains largely unexploited even as India and China lead current production.
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