Ruchi Soya gears up to lock in palm supplies

SINGAPORE: Ruchi Soya Industries Ltd, India’s leading palm refiner and soymeal exporter, is planning to either lease or buy palm plantations in Indonesia to ensure stable supplies of the raw material, its managing director said on Friday.

With palm oil up more than 75% since January, Dinesh Shahra said it was important to secure supplies of the commodity, which could increasingly be diverted into biodiesel production, pushing prices up further.

“Palm oil is a very important raw material for us and we need to have some safeguard,” he told Reuters on the sidelines of a traders’ summit in Singapore.

“We are seriously looking at palm oil plantations in Indonesia. We will take land on lease in Indonesia and plant oil palm. Also, we could look at buying plantations there if they are offered at a good price.”

Shahra, whose firm refines about 800,000 tonnes of palm oil annually, said Ruchi was also open to the idea of setting up a joint venture with an Indonesian palm oil firm.

“We are looking at any kind of partnership which can add value for them and for us,” he added.

Shahra added that Ruchi was also looking at acquiring assets in the domestic market as it was aiming to expand its presence in cottonseed, rapeseed and ricebran oils.