Gemini Edibles & Fats India will expand its production capacity with a new integrated processing facility in Telangana.
The proposed facility will be developed for Rs 500 crore, The Hindu reported.
“It will be an integrated processing facility, unlike the one we have near the ports in Andhra Pradesh where we process crude oil that we import,” said Pradeep Chowdhary, Managing Director of Gemini Edibles and Fats India Ltd.
GEF currently has three refining units in Kakinada and Krishnapatnam with a combined capacity of 2,615 tons per day. The new unit will be ready in the next 1.5 to 2 years and the company hopes to finalize the ground soon.
GEF’s announcement comes in the background of the government of Telangana’s plan to boost the state’s palm oil production. The state has allocated Rs 1,000 crore in this year’s budget to encourage farmers to grow palm oil.
Telangana aims to increase its oil palm cultivation to 2.5 lakh hectares this fiscal year and 7-8 lakh hectares of oil palm in the coming years.
“Although we are the leaders in the state, we don’t have a facility in Telangana. Now that the state is significantly promoting oil palm cultivation, we see good potential for setting up a production facility. We are looking for 40-50 acres of land to set up of the facility,” added Mr Chowdhary.
He said the prices of edible oils that rose after the COVID-19 pandemic are falling and will soon be at an ideal pace.
Sunflower prices shot up to $2400 per tonne, while soybean and palm oil prices were at $2,000 and $1,900 per tonne.
“The situation has improved and prices have fallen. While sunflower prices have fallen to $1,800, soybean prices have fallen to $1,500 and palm oil has fallen to $1,300,” Chowdhary said.
He added that excellent prices for farmers and consumers would be when palm oil sells for about $1,000 a ton and sunflower and soybean for $1,100-1200 a ton.