Karanji oil finds brisk industrial demand

CHENNAI: Karanji, India’s traditional lamp oil is in brisk demand with increasing new applications. As a non-edible oil, it was used extensively in leather tanning and later in soap making. In recent times, thanks to the rising cost of diesel and drive against pollution, karanji has found a host of new users, according to industry and trade sources.

The oil used to be quoted at Rs 30 to Rs 35 per kg ( excluding taxes) in various markets a few months ago. Now, it has firmed up quoting between Rs 37 to Rs 41 per kg. Prices are expected to stabilise on the arrival of new crop.

Karanji seeds are sourced by the mill owners from southern states as well as from other production centres in Rajasthan, Bihar, Maharashtra, Madhya Pradesh and Orissa. The oil also has an export demand from countries like Italy and Australia at $ 1 per kg, trade sources said.

Prof Udipi Shrinivasa, President, Bio diesel society of India, Bangalore which is promoting the use of Karanji oil told ET the annual production is estimated around one million tonnes with the crushing mills located all over the country.

The market is expected to go up with the rising cost of diesel and drive against pollution. The society also expects it to emerge as a cost effective and eco-friendly bio diesel in the coming years.

Traditionally, Karanji oil, with its anti-fungicidal properties, is used in leather tanning industry. Later, Soap manufacturers started using it when the cost of other vegetable oils went up. Now, they have reduced its use with palm styrene and other acid oils available cheaper than karanji oil.

Industry and trade sources in Tamil Nadu and Karnataka said in recent times, karanji oil is increasingly used in automobile engines. It is used along with other lubricants for cleaning up motor and industrial engines.

It is also emerging as a substitute feul for diesel and in motor engines ( tractors, jeeps, buses), railways, captive gensets and pumpsets. Its application is also growing in the paint , leather chemicals and pharma industries.

Industry sources said Karnataka State Transport corporation is giving a big push to the application of this oil as part of its pollution control drive. Kstrc buses are now run with 10 to 20% karanji oil blended with diesel. It is also exploring the scope for raising the content.

They want the centre and states to encourage the extensive cultivation of the plant by farmers with incentives and confessional credit. Indian Railways has started large scale cultivation of it along the railway tracks.