Industry Overview
India is one of the largest producers of oilseeds and an important consumer of edible oils. The country cultivates major oilseed varieties including groundnut, soybean, rapeseed/mustard, sunflower, sesame, castor, niger, safflower and linseed. Edible oil consumption has been supported by population growth, rising income levels and changing food habits, while imports include palm, soybean and sunflower oils.
Mustard oil is an important edible oil, particularly in Northern and Central India, where it is widely used for cooking and pickle preparation. Small and decentralized oil extraction units can serve remote areas where transportation costs and limited access to large refineries create opportunities for local processing and self-employment. The availability of mustard seed near the processing location is an important consideration, while oil cake provides a valuable by-product used extensively as animal feed.
The report also covers vegetable oils including coconut, palm and groundnut oils, together with their properties, applications, extraction methods, refining technologies, quality requirements and processing equipment. It discusses mustard oil pressing, filtration and refining, oil filling and bottling, virgin coconut oil production, groundnut oil extraction and palm oil processing. Quality, storage, packaging, regulatory standards, material balances, machinery requirements and supplier information are also addressed.
Cost Estimation
| Particulars | Value |
|---|---|
| Plant Capacity | 6 Ton/Day |
| Land & Building (6000 sq.mt.) | Rs. 3.33 Cr |
| Plant & Machinery | Rs. 4.62 Cr |
| Working Capital for 2 Months | Rs. 3.81 Cr |
| Total Capital Investment | Rs. 12.18 Cr |
| Rate of Return | 36% |
| Break Even Point | 49% |
Content Index
- INTRODUCTION
- VARIETIES OF MUSTARD SEED
- FATTY ACID COMPOSITION OF MUSTARD OIL
- MUSTARD OIL (FROM BLACK MUSTARD SEED)
- MUSTARD OIL (FROM WHITE MUSTARD SEDDS)
- PHYSICO-CHEMICAL CHARACTERISTIC
- OIL SEEDS & % OF OIL CONTENT
- USES AND APPLICATIONS OF MUSTARD OIL
- MUSTARD OIL IS DIRECTLY CONSUMED BY FRYING THE CURRY, SNACKS ETC.
- MUSTARD OIL PROPERTIES
- TYPES OF EDIBLE COCONUT OIL
- REFINED, BLEACHED AND DEODORISED COCONUT OIL
- CHEMICAL COMPOSITION OF COCONUT OIL
- CHARACTERISTICS OF COCONUT OIL
- TABLE: COMPARATIVE FATTY ACID PROFILE OF COMMON FATS AND OILS
- EDIBLE OIL ESTIMATE FOR INDIA & GLOBAL
- EDIBLE OIL ESTIMATES FOR INDIA (MARKETING YEAR- NOVEMBER 2018-OCTOBER 2019)
- PRODUCTION TREND OF DOMESTIC OILSEEDS
- PRODUCTION TREND OF DOMESTIC EDIBLE OILS
- GLOBAL & DOMESTIC PRODUCTION, EXPORTERS AND IMPORTERS OF MAJOR EDIBLE OIL
- GLOBAL PRODUCTION TREND OF MAJOR EDIBLE OILS
- MAJOR EXPORTING AND IMPORTING COUNTRIES OF EDIBLE OILS
- INDIA’S IMPORT OF MAJOR EDIBLE OILS
- INDIA’S TOP IMPORT SOURCES OF PALM, SOYA AND SUNFLOWER OILS
- MARKET OVERVIEW OF EDIBLE OILS
- PRODUCTION AND CONSUMPTION PATTERN OF EDIBLE OIL
- KEY MARKET METRICS:
- PRODUCTION TREND OF DOMESTIC EDIBLE OIL
- INDIAN EDIBLE OILS PRODUCTION, IMPORT AND CONSUMPTION
- COMPANY PROFILES
- CHART 1: VARIETY-WISE IMPORTS OF EDIBLE OILS (IN THOUSAND TONNES)
- VARIETY-WISE SHARE OF CRUDE AND REFINED EDIBLE OIL IMPORTS
- MOVEMENT IN INTERNATIONAL AND DOMESTIC EDIBLE OIL PRICES
- SWOT ANALYSIS OF INDIAN EDIBLE OIL INDUSTRY
- SWOT ANALYSIS - STRENGTH
- DIVERSE AGRO-ECOLOGICAL SITUATIONS
- STRONG RESEARCH NETWORK FOR DEVELOPMENT OF OILSEED TECHNOLOGY
- STRONG FRONTLINE EXTENSION NETWORK FOR OILSEED TECHNOLOGY DISSEMINATION
- TECHNOLOGY MISSION ON OILSEEDS AND IMPACT
- INTEGRATED SCHEME ON OILSEEDS, PULSES, OIL PALM AND MAIZE (ISOPOM)
- IMPACT OF FIRST-LINE TRANSFER OF TECHNOLOGY
- PRODUCTION AND DISTRIBUTION OF QUALITY OILSEEDS
- SWOT ANALYSIS - WEAKNESS
- PRODUCTION SITUATION
- SYSTEM CONSTRAINTS IN PUBLIC SECTOR TRANSFER OF OILSEED TECHNOLOGY
- PROCESSING SITUATION
- SWOT ANALYSIS - OPPORTUNITIES
- PRODUCTION SITUATION
- PROCESSING SITUATION
- SUPPLEMENTARY OIL SOURCES
- SWOT ANALYSIS - THREATS
- PRODUCTION SITUATION
- PROCESSING SITUATION
- HIKE IN IMPORT DUTY OF EDIBLE OILS
- PRICE TREND
- A. PALM OIL
- MUSTARD OIL MANUFACTURING PROCESS
- PRESSING OF MUSTARD OIL
- FILTRATION AND REFINERY OF CRUDE MUSTARD OIL
- OIL FILLING / BOTTLING
- PROCESS FLOW DIAGRAM
- PROCESS FLOW DIAGRAM OF MUSTARD OIL
- MANUFACTURING PROCESS OF MUSTARD OIL IN DETALS
- HEATING:
- QUALITY SPECIFICATION
- PROCESS DESCRIPTION OF VEGETABLE OIL REFINING
- VEGETABLE OIL REFINING PROCESS BLOCK DIAGRAM:
- B.I.S SPECIFICATION
- PROPERTIES OF PALM OIL
- RECOMMENDED STANDARDS FOR PALM OIL
- USES AND APPLICATION OF PALM OIL
- VIRGIN COCONUT OIL
- USES AND HEALTH BENEFITS OF VIRGIN COCONUT OIL
- THE CURRENT EMERGING MAJOR USES OF VCO ARE:
- VCO AS A VERSATILE PRODUCT
- HEALTH BENEFITS OF VCO
- QUALITY STANDARDS OF VIRGIN COCONUT OIL
- TECHNOLOGIES FOR VIRGIN COCONUT OIL PRODUCTION
- FIGURE: SCHEMATIC DIAGRAM OF VCO PROCESS TECHNOLOGIES UNDER THE FRESH-DRY PROCESS
- CLASSIFICATION & COMPOSITION OF COCONUT FLOUR
- PROXIMATE COMPOSITION OF COCONUT FLOUR
- PROPERTIES OF COCONUT FLOUR
- USES AND APPLICATIONS OF COCONUT FLOUR
- COCO FLOUR (HIGH-PROTEIN)
- COCO FLOUR (HIGH-FIBER)
- POPULAR BREADS & CAKES THAT CAN BE FORTIFIED WITH HIGH-PROTEIN COCONUT FLOUR:
- ACCEPTABLE LEVELS OF COCONUT FLOUR (HIGH-FIBER) AS AN ADDITIVE IN FOOD PRODUCTS
- MANUFACTURING PROCESS OF VIRGIN COCONUT OIL
- PROCESS FLOW DIAGRAM
- ANALYSIS OF DIFFERENT PROCESSES FOR PRODUCING VIRGIN COCONUT OIL (VCO)
- MANUFACTURING PROCESS OF VIRGIN COCONUT OIL AND COCONUT FLOUR
- QUALITY CHARACTERISTICS OF VCO PRODUCED FROM THE PCA DEVELOPED PROCESS:
- PROCESS FLOW DIAGRAM
- VIRGIN COCONUT OIL EXTRACTION METHODS
- THE FRESH-DRY LOW PRESSURE OIL EXTRACTION METHOD
- FIGURE: THE FRESH-DRY LOW PRESSURE OIL EXTRACTION METHOD
- FIGURE: BRIDGE PRESS DEVELOPED BY THE NATURAL RESOURCES INSTITUTE, UNITED KINGDOM
- THE FRESH-DRY DIRECT MICRO EXPELLING PROCESS
- FIGURE: MOTORISED DME GRATER
- FIGURE: OTHER TYPES OF COCONUT GRATER BEING USED BY VCO PROCESSORS IN FIJI
- FIGURE: DRYING OF GRATED KERNEL IN A STANDARD DME FLAT BED DIRECT ONTACT TYPE DRYER
- DRYING IS THE MOST CRITICAL PART IN THE DME PROCESS FOR THE FOLLOWING REASONS:
- FIGURE: LOADING OF DRIED GRATED KERNEL IN THE DME CYLINDER THROUGH A BUILT-IN FEED HOPPER.
- FIGURE: LOW PRESSURE OIL EXTRACTION USING A DME PRESS
- FIGURE: NEW ZEALAND PRESS
- POST PROCESSING STAGE OF VIRGING COCONUT OIL
- OIL DRYING
- FIGURE: IMPROVISED DOUBLE BOILER
- AGEING
- FINE FILTRATION OF VCO
- PACKAGING AND STORAGE
- NUTRITIONAL CONTENT OF GROUNDNUT OIL
- ALLERGENS AND TOXINS
- OTHER USES
- "PEANUT OIL WILL MAKE MEDICINE"
- BIODIESEL
- SUSPENSION AGENT
- GROUNDNUT UTILIZATION SYSTEM IN INDIA
- OIL IN HUMAN CONSUMPTION
- ANTI-NUTRITIONAL AND OTHER FACTORS IN GROUNDNUT
- GROUNDNUT OIL AND ATHEROSCLEROSIS
- SECONDARY PRODUCTS
- BOILED GROUNDNUTS
- BENEFITS OF GROUNDNUT OIL
- RICH IN UNSATURATED FATS
- NO CHOLESTEROL
- NATURAL ANTIOXIDANT CONTENT
- COOKING WITH GROUNDNUT OIL
- MANUFACTURING PROCESS OF GROUNDNUT OIL
- FLOW DIAGRAM FOR GROUNDNUT OIL MILL
- METHODS OF EXTRACTION OF EDIBLE OIL
- FIVE COMMON METHODS ARE USED TO EXTRACT OIL:
- PROCESS FLOW DIAGRAM
- EQUIPMENT REQUIRED
- SHELLING OR DEHULLING
- HEATING OR CONDITIONING
- EXPELLING
- FILTRATION
- FIGURE 5: A FILER PRESS
- MANUFACTURING PROCESS OF PALM OIL
- TECHNOLOGY AND PROCESS DESCRIPTION
- 1. RECEPTION OF RAW MATRIAL:-
- 2. STERLIZING:-
- 3. STRIPPING:-
- 4. DIGESTING:-
- 5. PRESSING/OIL EXTRACTION:-
- 6. CLARIFICATION AND STORAGE:-
- PROCESS FLOW SHEET FOR PALM OIL
- EQUIPMENT REQUIREMENT
- LIST OF FOOD AND AGRO PROCESSING CONSULTANTS
- SUPPLIERS OF OIL EXPELLERS MACHINERY
- SUPPLIERS OF OIL EXPELLERS
- SUPPLIERS OF RAW MATERIALS
- MUSTARD SEEDS
- STANDARDS APPLICABLE FOR STORAGE OF MUSTARD
- STANDARDS OF CENTRAL WAREHOUSING CORPORATION
- GENERAL CHARACTERISTICS
- SPECIAL CHARACTERISTICS:
- STANDARDS APPLICABLE FOR DOMESTIC MARKET
- THE PREVENTION OF FOOD ADULTERATION ACT, 1954 (PFA STANDARDS)
- QUALITY PARAMETERS
- EXPLANATION:
- SAFETY PARAMETERS
- FOLLOWING MAXIMUM LIMITS ARE PRESCRIBED FOR RESIDUES OF INSECTICIDES AND PESTICIDES
- POISONOUS METALS
- STANDARDS FOR GRADING
- ADVANTAGES OF GRADING
- AGRICULTURAL PRODUCE (GRADING & MARKING) ACT, 1937 (AGMARK STANDARDS).
- AGMARK STANDARDS OF MUSTARD AND RAPESEED
- SPECIAL CHARACTERISTICS
- GENERAL CHARACTERISTICS
- SAFETY STANDARDS
- STANDARDS APPLICABLE FOR INTERNATIONAL TRADE.
- THE INTERNATIONAL ORGANIZATION FOR STANDARDIZATION
- THE INTERNATIONAL ORGANIZATION FOR STANDARDIZATION SPECIFIES THE FOLLOWING REQUIREMENTS FOR MUSTARD SEED
- DESCRIPTION
- ODOUR AND FLAVOUR
- FREEDOM FROM MOULDS, INSECTS, ETC.
- EXTRANEOUS MATTER, SHRIVELLED AND DAMAGED SEEDS
- CHEMICAL REQUIREMENTS
- CODEX ALIMENTARIUS COMMISSION (CAC)
- SAFETY STANDARDS FOR MUSTARD:
- (A) MUSTARD SEED
- EGAL AND REGULATORY FRAMEWORK GOVERNING OIL SEED PROCESSING INDUSTRY:
- PROCESS FLOW DIAGRAM OF OIL REFINING SECTION
- PROCESS FLOW DIAGRAM OF OIL REFINING SECTION – CONTINUES
- DOC PACKING SECTION
- REFINED OIL PACKING
- PROCESS FLOW DIAGRAM OF OIL PACKING SECTION
- MATERIAL BALANCE
- MATERIAL BALANCE FOR PREPARATORY SECTION
- MATERIAL BALANCE FOR OIL REFINERY
- SUPPLIERS OF RAW MATERIALS
- SUPPLIERS OF PET BOTTLE
- SUPPLIERS OF OIL CAKE BAG
- EDIBLE OIL CONSULTANTS LIST
- COMPLETE PLANT AND MACHINERY SUPPLIERS FOR SOLVENT EXTRACTION PLANT
- LIST OF FOREIGN MANUFACTURER/SUPPLIER OF PLANT AND MACHINERY
- SUPPLIERS OF PLANT AND MACHINERY
- BOILERS
- STORAGE TANKS
- ELEVATORS
- D.G. SETS (DIESEL GENERATOR)
- AIR COMPRESSORS
- LABORATORY EQUIPMENTS/LABORATORY TESTING EQUIPMENTS
- DE-GUMMING / PRE-REFINING BATCH PROCESS, RE-REFINING (LONG-MIX) & WATER WASHING REFER FLOWCHART DLX-01
- PROCESS STAGES FOR CRUDE SOY OIL –
- BLEACHING – BATCH TYPE
- SLURRY PREPARATION -
- SLURRY FILTRATION -
- SATURATED LOW PRESSURE DRY STEAM IS USED FOR THE OPERATION.
- CONT. DEODORIZATION (TRAY)
- DE-AERATION:
- PRE-HEATING:
- (C) METERING
- SECOND HEAT REGENERATION:
- (J) SHUT DOWN COOLER:
- (K) POLISHING:
- SUCTION PRESSURE:
- STEAM:
- 2. SPECIFICATIONS OF THE EQUIPMENT
- OIL NEUTRALIZATION PLANT
- CASING
- MATERIAL OF CONSTRUCTION
- BATCH BLEACHING PLANT
- CONT. DEODORIZATION PLANT (TRAY DEODORIZER)
- HEAT RECOVERY SECTION (BOTTOM TRAY)
- START UP HEAT. THE HEATER WILL BE SKID MOUNTED CONSISTING OF THE FOLLOWING:
- NECESSARY CONTROL FOR THE OPERATION CONSISTING OF:
- COOLING WATER PUMPING (CONTAMINATED & CLEAN)
- AUXILIARY EQUIPMENT (UTILITY AND LEAVES CLEANING)
- ERECTION MATERIAL
- COOLING TOWERS
Appendix
- 01. PLANT ECONOMICS
- 02. LAND & BUILDING
- 03. PLANT AND MACHINERY
- 04. OTHER FIXED ASSESTS
- 05. FIXED CAPITAL
- 06. RAW MATERIAL
- 07. SALARY AND WAGES
- 08. UTILITIES AND OVERHEADS
- 09. TOTAL WORKING CAPITAL
- 10. TOTAL CAPITAL INVESTMENT
- 11. COST OF PRODUCTION
- 12. TURN OVER/ANNUM
- 13. BREAK EVEN POINT
- 14. RESOURCES FOR FINANCE
- 15. INSTALMENT PAYABLE IN 5 YEARS
- 16. DEPRECIATION CHART FOR 5 YEARS
- 17. PROFIT ANALYSIS FOR 5 YEARS
- 18. PROJECTED BALANCE SHEET FOR (5 YEARS)
Frequently Asked Questions
Setting up an edible oil processing plant involves raw-material handling, oil extraction, filtration, refining where required, storage and packaging operations. The project also requires suitable processing machinery, utilities, quality-control facilities and storage arrangements. The selection of processes depends on the type of oilseed or oil being handled. Location is particularly important because proximity to raw materials can reduce transportation and handling costs. The report covers these aspects for mustard, coconut, groundnut and palm oil processing, along with equipment and process-flow requirements.
Mustard oil is generally produced through seed preparation, pressing or expelling, filtration and, where applicable, refining. The mustard seeds are prepared for processing and oil is mechanically extracted using an expeller or similar equipment. The crude oil can then undergo filtration and additional refining operations depending on the desired product specification. The resulting oil may be stored and packed into suitable retail or bulk containers. The report provides detailed sections covering mustard varieties, oil properties, manufacturing processes, quality specifications, equipment and process-flow diagrams.
Oil cake is an important by-product because it provides an additional outlet for material remaining after oil extraction. In mustard oil processing, the report identifies mustard oil cake as a product used as cattle feed. Effective utilization and sale of oil cake can therefore contribute to the overall commercial operation of an oil extraction unit. Its handling, storage and marketability should be considered alongside edible oil production when planning the processing facility and assessing the complete utilization of oilseed raw materials.
Common equipment includes seed preparation and handling systems, shelling or dehulling equipment where applicable, conditioners or heaters, oil expellers, filters, storage tanks and packaging equipment. Refineries may additionally require neutralization, bleaching, deodorization and heat-recovery systems. Supporting utilities can include boilers, cooling towers, air compressors, elevators, generators and laboratory testing equipment. The exact equipment configuration depends on the raw material, extraction method, refining requirements and intended product quality. The report includes equipment requirements and supplier categories for several edible oil processing operations.
Virgin coconut oil can be produced using processes that extract oil from fresh coconut meat without conventional high-temperature refining and solvent-based processing. The report discusses fresh-dry methods, direct micro expelling, drying, low-pressure extraction, post-processing, fine filtration, packaging and storage. Process control during drying and extraction is important because these stages influence the quality characteristics of the resulting oil. Different VCO technologies and extraction methods are presented, together with process-flow diagrams and information on coconut flour produced alongside some processing approaches.
Temperature, moisture, exposure to oxygen, impurities and suitable packaging are important factors in edible oil storage. Oxidation is identified in the report as a major cause of deterioration in stored edible oils. Proper storage conditions can help maintain product quality and reduce the risk of spoilage. Oil-specific characteristics also need consideration, particularly for oils whose physical properties change with temperature. Storage tanks, packaging systems and handling practices should therefore be selected according to the type of oil, processing stage and intended storage duration.
Quality standards help ensure that edible oils and oilseeds meet specified requirements for composition, safety, purity and handling. The report covers domestic and international standards, including sections on mustard seed, grading, safety parameters, pesticide residues, poisonous metals and requirements associated with international trade. Processing facilities also need suitable quality-control and laboratory testing arrangements to monitor raw materials and finished products. Applying appropriate standards supports consistent product quality, responsible handling and compliance with the requirements applicable to the intended market.
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