Cargill proposes giant vegetable oil refinery

Cargill, the US agribusiness group, is looking to build one of India's largest vegetable oils refinery in the coastal state of Orissa, the Financial Times reports this week.

The proposed plant, with a daily refining capacity of 1,000 tonnes mainly for processing imported vegetable oils, will be located close to Orissa's all-season Paradeep Port.

As Cargill sought the Orissa government's help to acquire land for a refinery near the port to be able to draw crude oils from tankers through a pipeline, it told state officials that alongside the refinery it would build an oilseeds crushing unit. This would open a new efficient market outlet for the local farmers, the report continues.

India, the world's largest importer of oils, buys nearly 5m tonnes of crude in the world market, which is then refined in India. "Cargill owns jetties in some of India's western and southern ports for importing crude oils and oilseeds. A refinery-cum-seed crushing complex on the eastern coast will give Cargill the leadership status in the oils business in India,"​ said an Orissa government official.

Farmers' groups in Orissa want the state government to give "all help" to Cargill to build the complex. Cargill has enlisted their support by promising to open procurement centres in oilseeds growing areas and making quick and fair payments to them.