09 Ago Potential competitor for the Mediterranean countries

The planting of thousands of olive trees in the region of Rajasthan might mean a threat for the Mediterranean countries which have long been producing this gold liquid, being Spain, Italy and Greece its biggest competitors.

The oil market in India, although growing and with great potential is still in its initial stage. It will not be until this September that the commercial production will start.

Rajasthan is the biggest of the northeast states in India; it has developed a cultivation of over 260 hectares. Its short winters and long dry summers turn this region to be optimal for the planting of this product. Over the past 5 years India has been working on more than 60 different types of trees in order to determine the most adequate for their climate conditions.

Nowadays, Spain is the main producer and exporter of olive oil worldwide with more than 2 million hectares of planting. Given this, it´s one of the most concerned countries in the development of this new force in the market.

The Indian population as well as this vegetable oil consumption is growing relentlessly. This added to the reduction of the tariff taxes are some of the reasons why India is a potential force in this market.

If India manages to make itself a place in the olive oil market or not will be a matter of time. But it is pretty obvious that they have a great opportunity with the increase of a middle class that takes care of its food habits and the readjustment of tariffs.