Explaining the move, Sumeet Mittal, CEO of LDC in the country, says there is a growing demand for healthy and nutritious diet options. “India’s dependence on imported vegetable oils, with about 65% of consumption met through imports, also presents a significant market opportunity. As a leading global trader and processor of agricultural products, LDC brings strong expertise in sourcing raw materials for its products.” edible oil productionaddressing the growing demand for healthy and nutritious diet options, and therefore the plan fits well with the company’s broader objective.”
When asked about the specific oil varieties or blends they plan to introduce, Mittal mentions the reintroduction of VibhorLDC’s first B2C edible oil brand, offering health-conscious consumers high-quality cooking oils enriched with essential vitamins and featuring a lighter texture. This is part of LDC’s strategy to diversify revenue across multiple value-added products and move further into the market.
Vibhor’s revamped product line includes premium soybean oil, palm oil, cottonseed oil, mustard oil and vanaspati, which the company says are fortified with essential vitamins.
A key player in India agricultural sectorLDC is one of the top three grain traders and a leading processor of agricultural products. Established in 1997, LDC India has seen strong activity across multiple segments with over 70 domestic sourcing locations.
According to Mittal, India is a focal point for the Rotterdam-based multinational’s South Asian operations. “We procure a variety of grains from domestic and international markets and supply them to millers and feed manufacturers in India for the production of food and animal feed. We are active in the creation, refining, processing and marketing of edible oils, catering to the needs of major companies in the Indian food manufacturing sector. We operate an oil refinery in Kandla with an annual processing capacity of 350,000 tonnes and maintain our presence through the sale of packaged edible oil marketed under our brand, Vibhor.” LDC aims to capture a substantial share of this market by expanding its retail outlets and introducing new product categories. It also wants to double the number of outlets by 2026.
Tackling the Child
According to Mittal, India faces the challenge of increasing production to feed its growing population, and this is compounded by several issues, including climate-related concerns.
El Niño, a weather phenomenon, can significantly alter global weather patterns and affect agricultural production worldwide. Mittal says this affects agriculture in India by weakening the southwest monsoon, which accounts for about 70% of the country’s total rainfall. This disruption affects major crops such as rice, cereals, sugar and cotton.
LDC is focused on ensuring “safe, reliable and responsible movement” of essential supply chains. “We believe we can play a vital role by supporting farmers in adopting more sustainable practices, such as in regenerative agriculture “We are training over 6,500 farmers in Maharashtra on regenerative agriculture practices as we aim to produce 20,000 ‘regenagri certified’ bales,” he says.
Regenagri is a global program focused on regenerative agriculture to protect the health of the land and improve the well-being of its inhabitants.
To address the harmful effects of climate change on its supply chains, LDC is also engaging with farmers in various parts of the country. In Gujarat, Mittal says LDC supports 6,000 small and marginal farmers through sustainable income improvement and nutritional security, resulting in a 20-25% increase in crop productivity and a 20% increase in livestock (milk) productivity.
Drawing on its experience as the world’s leading agricultural trader and processor operating across the value chain, LDC says that in India, where the agricultural sector remains central to its economy, strategies such as demand forecasting, value chain integration and crop diversification can help the country meet changing consumer preferences and growing market demands.
As of July 2024, India’s agricultural sector contributed 18.2% to the country’s GDP.
According to Mittal, the country has an opportunity to learn from other nations’ successful agricultural growth models, focusing on technology-driven supply chains and sustainable practices. This includes adopting technologies with the potential to drive efficiency at the farm level and across supply chains, as well as adopting sustainable practices such as precision farming and regenerative agriculture to help increase yields while preserving soils and natural ecosystems.
Collaboration between government, private sector and research institutions facilitates knowledge transfer, innovation and effective implementation of best practices. By leveraging global experience and adopting proven strategies, India can further strengthen its agricultural sector, improve market access and drive sustainable growth, he added.
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