Gemini Edibles & Fats firm to set up new palm oil manufacturing facility in Telangana
Gemini Edibles & Fats India is set to increase its production capacity with a new integrated processing facility in Telangana.
The proposed facility will be developed at Rs 500 crore. informed of Hindu.
“It is going to be an integrated processing facility, which is near the ports in Andhra Pradesh, where we are processing crude oil,” said Pradeep Choudhary, managing director, Gemini Edibles & Fats India Ltd.
GEF currently has three refining units at Kakinada and Krishnapatnam with a combined capacity of 2,615 MT per day. The new unit will be ready in the next 1.5 to 2 years and the company expects the land to be finalized soon.
GEF’s announcement comes in the backdrop of Telangana government’s plan to boost the state’s palm oil production. To encourage farmers to take up palm oil cultivation, the state allocated Rs 1,000 crore in this year’s budget.
Telangana aims to take its palm oil cultivation to 2.5 lakh hectares in this financial year and 7-8 lakh hectares of oil palm oil in the next few years.
“Though we are the leaders in the state, we do not have any facilities in Telangana. Now that the state is giving a big boost to oil palm cultivation, we see good scope for setting up a manufacturing facility. We have 40-50 acres. We are looking for land to set up the facility,” Mr. Choudhary said.
He said that the prices of edible oils have risen after the fall of the COVID-19 pandemic and will soon be at an ideal rate.
Sunflower prices touched $2,400 a tonne, while soy and palm oil prices were between $2,000 and $1,900 a tonne.
“The situation has improved and prices have come down. Sunflower prices have come down to $1,800, soy to $1,500 and palm oil to $1,300,” Choudhary said.
He said the best prices for farmers and consumers would be when palm oil sells at around $1,000 a tonne and sunflower and soya at $1,100-1,200 a tonne.