Gemini Edibles & Fats India is set to ramp up its production capacity with a new integrated processing facility in Telangana.
The proposed facility will be developed at Rs 500 crore, reported The Hindu.
"It is going to be an integrated processing facility, unlike the ones we have near the ports in Andhra Pradesh where we are processing crude oil that we import," said Pradeep Chowdhary, Managing Director of Gemini Edibles and Fats India Ltd.
GEF presently has three refining units in Kakinada and Krishnapatnam with a combined capacity of 2,615 metric tonnes per day. The new unit will be ready in the next 1.5 to 2 years, and the company is hopeful of finalizing the land soon.
GEF's announcement comes in the backdrop of the Telangana government's plan to boost the State's palm oil production. The State allotted Rs 1,000 crore in this year's budget to encourage farmers to take up oil palm cultivation.
Telangana aims to take its palm oil cultivation to 2.5 lakh hectares in this financial year and further to 7-8 lakh hectares of oil palm in the next few years.
"Though we are the leaders in the State, we don't have a facility in Telangana. Now that the State is promoting oil palm cultivation significantly, we see good scope for setting up a manufacturing facility. We are looking for 40-50 acres of land for setting up the facility," Mr Chowdhary added.
He said that the prices of edible oils spiked after the COVID-19 pandemic were dropping and will soon be at an ideal rate.
Sunflower prices shot up to $2400 per tonne, whereas soya and palm oil prices were at $2,000 and $ 1,900 per tonne.
"The situation has improved, and the prices have come down. While sunflower prices have come down to $1,800, soya prices are down to $1,500 and palm oil to $1,300," Chowdhary said.
He added that excellent prices for farmers and consumers would be when palm oil sells at around $1,000 per tonne and sunflower and soya at $1,100-1200 per tonne.
