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OOT: This is concerning the few olive cultivation projects in India. Do you think that these would ever be viable to the extent of bringing down the prices of olive oil and thereby making it accessible to the average Indian?

VND: Currently, all the olive oil consumed in India is imported. The entrepreneurs who are investing in olive cultivation now are courageous entrepreneurs, because they are doing something new in India. It will be 2013 or later that their investments will begin to provide returns.

The Rajasthan project is a pioneering project and the first of its kind in India. At present, the project is a pilot project on 250 hectares of land where the State Government of Rajasthan has provided the land, the Israeli firm has provided the technical expertise and  an Indian firm has provided the seed capital.  So it is a 3-way collaboration.  Last year, there was an announcement of a Punjab government decision to undertake a similar venture, but nothing further has been heard.

Considering the size of our country and population, the present stage of olive production in India makes it difficult to predict the future scope of home-grown olive oil.

OOT: Despite olive oil being considered a healthy cooking medium, it does not seem likely that it would be a commonly-used oil in India, as it has been restricted to the extreme top-end of the market. Is the Indian Olive Association interested in promoting it to the general public?

VND: As the national health situation is already an emergency, the need of the hour is to promote a preventive life-style to the general public. A significant component of any healthy diet is an oil, high in monounsaturated fats.  Olive oil has the highest amount of monounsaturated fats in the world.  We are interested in promoting olive oil to the general public and expect increasing adoption of olive oil as a cooking medium, due to the trickle-down effect.  We have already seen its adoption at the high end of the market and the middle-income segment is beginning to adopt it now.  As affluence and living standards improve, adoption will increase and promotions need to be geared accordingly.

OOT: Olive oil is a heart-healthy oil but there is hardly any general promotion or publicity by any olive oil company or the Indian Olive Association in this connection. Surely, a sustained campaign is needed to disseminate this information in a country where heart disease is so rampant?

VND: Olive oil is the healthiest edible oil for the prevention of heart disease.  Most importantly, virgin olive oil is rich in antioxidants (A, D, E, K and β-carotene), which fight cancer and increase life expectancy.  Olive oil is also the richest source of oleic acid, which protects against breast cancer. It also reduces the risk of bowel cancer and protects against colon cancer and child leukemia. There are numerous other health benefits of olive oil and any campaign undertaken by us would emphasize these aspects. Individual campaigns by companies highlighting the health plank are also gradually being observed in the media.

OOT: Is the Dalmia Group planning a foray into olive cultivation in India?

VND: There are no plans as of now.  There are 4 aspects to the olive oil sector – cultivators, processors, packers/bottlers and sellers.  The logical backward integration would require us to become packers or bottlers as the next step.  Olive cultivation is best left to the agriculturists.

OOT: Is there anything else you would like to say to Olive Oil Times readers around the world?

VND: Our inflated expectations of growth did not materialize, perhaps as a result of the economic recession.  Imports were more or less static in the last 2 years.  With revival of the economy and the tourism industry, which provides demand from the HORECA (hotels, restaurants and cafes) sector, we expect a return to growth this year.

The entry of companies in the organized sector would also provide sustained and focused individual promotional campaigns.  Earlier, companies that sold olive oil were mere food importers and it was just one commodity among many others. They had no interest in educating the consumer or investing in promotion. Even today, these companies simply follow discounting strategies without any product segmentation or marketing strategy. With the introduction of corporates, we expect consolidation in the industry and an increasing number of promotional campaigns.

A final, very important problem is the lack of standardization in the industry and market. The Prevention of Food Adulteration rules here are inconsistent with the IOC standards regarding olive oil and also with Codex and EU standards. Products and definitions under Indian law are vastly different from international product specifications.  We need to synchronize our product definitions and specifications with the IOC and have an inspection and enforcement mechanism to check the product in the market.

We have had cases where other oils or blends of other oils have been packed and sold as olive oil.  We have also had cases of olive pomace oil being sold as extra virgin oil.  In order to check this kind of activity, we need our laws to specify what the different oils are, so that products which do not conform to this law are made illegal and action can be taken.  We have raised this issue with the new Food Safety and Standards Authority and are pursuing it on top priority.

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Imports of olive oil to India from Italy and Spain (amounts from other countries are negligible):

Calendar Year	2005	2006	2007	2008	2009
Imports MT	1204	1404	2107	2634	2617

This article was last updated December 8, 2011 - 1:26 PM (GMT-4)