Detailed Project Report (DPR) on mustard oil production

MUSTARD OIL PRODUCTION
[CODE NO.3742]  


Indian Edible Oil Industry Vegetable oil and oil seeds are two of the essential commodities for the consumer’s daily needs. India is one of the largest producers of oilseeds in the world with an area of 26.54 million hectares under cultivation producing 23-28 million tonnes of oil seeds every year depending on the monsoons. It produces nine types of oil seeds namely, Groundnut, Soybean, Rape/Mustard seed, Sunflower seed, Sesame seed, Castor seed, Niger seed, Safflower seed, Linseed. It also enjoys the position of being the third largest consumer of edible oil in the world next only to US and China owing to its growing population, rising income levels and changing eating habits.

The per capita consumption has grown by 8.1 per cent over the last five years. It stood at 12.5 kg/person per annum which is considerably low as compared to the world average of 17.5 kg/ annum. Developed countries like Japan, Brazil and USA consume around 20.8 kg/annum, 21.3 kg/annum and 48.0 kg/annum respectively. The imports mainly comprise Palm oil, Soybean oil and Sunflower oil. Indonesia, Argentina and Malaysia are the key exporters of oil to India. Olive oil is mainly imported from European countries like Italy and Spain. Rapeseed oil is imported from UAE.

While mustard seeds are abundantly produced in most parts of India, its milling/grinding is mostly done by the large centralized plants, which have the advantage of high efficiency and reduced costs due to economies of scale. Despite the clear advantage of large plants, the importance of tiny decentralized oil extraction units cannot be discounted as they also prove to be economic and present opportunities for self- employment in situations:

 where oil produced by large plants do not find its way to remote and distant places because of high transportation costs involved in wider distribution and in places where there is no oil expeller in the area and the farmers sell oil seeds to large refineries which they then buy back at high cost in the form of cooking oil but without the valuable high protein oil cake.


Therefore, in recognition of the existing opportunities of setting-up mustard oil expeller units in such situations, tiny units are suggested for the first generation Tribal entrepreneurs – the investment for which is modest and the operation is simple.

The unit is required to maintain a minimum stock of seed and enough to continue operations throughout the year. Hence, the location of the unit has to be essentially in those areas where the raw material is locally available in abundance.

In general, more profit could be made if the cooking oil is packed into retail size bottles.

However, considering the difficulty in obtaining glass or plastic bottles in large quantities in remote areas and blocking thereby substantial capital, the possibility of using second- hand bottles may be utilised. Alternatively, oil could be sold in drums to the provision stores in neighboring towns/cities.

The viability of any oil extraction unit considerably depends on the sale of the oil cake, which is extensively used as animal feed and other sub-products.

Primitive mills and presses for extraction of oils from seeds have been in use sevice long.  Mechanization came with  the introduction  of the hydraulic press by the  end  of  the  18th Century.  This too was replaced by the more efficient screw press or expeller towards the end of the last century.

Edible oil should have a fairly high keeping quality. However oils get spoilt in storage due to various spoilage factors, the chief among them being oxidation. The edible oils and  fats  such as olive, cottonseed, corn, groundnut, sesamum, soyabean etc have been found to be almost completely assimulated.  As such vegetable oils may be classed as edible and non-edible. Important vegetable oils are castor, coconut, cottonseed, linseed, mustard,olive, palm, groundnut,  sesamum,  soyabeans, sunflower and rice bran oil etc.

Oil seed crops occupy an important place in the agriculture and industrial economy of the country. India is perhaps the only country in the world having the largest number of commercial varieties of oil seeds. Mustard Oil is also one of the major oil seeds from which edible oil is produced. In Northern & Central India. It is medium of cooking food. Besides it is also used in preparation of Pickles. The Mustard Oil Cake (By Product) is used as cattle feed.


COST ESTIMATION

Plant Capacity            10 Ton/Day       
Land & Building (6000 sq.mt.)      Rs. 3.54 Cr         
Plant & Machinery                      Rs. 6.05 Cr     
Working Capital for 1 Month     Rs. 2.68 Cr
Total Capital Investment              Rs. 12.95 Cr
Rate of Return            56%                   
Break Even Point             69%                



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    
MUSTARD OIL IS DIRECTLY CONSUMED BY FRYING THE CURRY, SNACKS ETC.    
MUSTARD OIL PROPERTIES    
MARKET OVERVIEW OF EDIBLE OIL INDUSTRY IN INDIA    
PRODUCTION    
IMPORTS    
HIKE IN IMPORT DUTY OF EDIBLE OILS    
PRICE TREND    
A. PALM OIL    
B. SOYBEAN OIL    
MSP FOR OILSEEDS    
MARKET SURVEY    
BACKGROUND    
OIL SEEDS SECTOR IN INDIA: SIZE    
MUSTARD OIL    
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    
MUSTARD OIL    
SUNFLOWER OIL    
INDIAN MARKET FOR RAPESEED/MUSTARD OIL    
MUSTARD OIL: KEY MARKET INFLUENCERS    
MUSTARD OIL TRADE    
MAJOR PLAYERS    
EDIBLE OILS    
FEATURES    
CHARACTERISTICS    
FUTURE: DEMAND DRIVERS    
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    
WATER DEGUMMING:-    
ENZYMATIC DEGUMMING:-    
ALKALI REFINING:-    
BLEACHING:-    
DE-WAXING / WINTERIZATION:-    
DEODORIZATION:-    
PHYSICAL REFINING:-    

FRACTIONATION:-    
ACID OIL PLANT:-    
VEGETABLE OIL REFINING PROCESS BLOCK DIAGRAM:    
MANUFACTURERS AND EXPORTERS OF MUSTARD OILS    
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 APPLICABLE FOR DOMESTIC MARKET    
THE PREVENTION OF FOOD ADULTERATION ACT, 1954 (PFA STANDARDS)    
QUALITY PARAMETERS    
EXPLANATION:    
SAFETY PARAMETERS    
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    
STANDARDS APPLICABLE FOR INTERNATIONAL TRADE.    
ODOUR AND FLAVOUR    
CHEMICAL REQUIREMENTS    
CODEX ALIMENTARIUS COMMISSION (CAC)    
SAFETY STANDARDS FOR MUSTARD:    
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    
MUSTARD OIL CONSULTANT 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 -    
STEAMING OF PLF601 -    
SATURATED LOW PRESSURE DRY STEAM IS USED FOR THE OPERATION.    
CONT. DEODORIZATION (TRAY)    
DE-AERATION:    
PRE-HEATING:    
(C) METERING    
FINAL HEATING FOR PROCESS: TOP TRAY    
FINAL HEATING OF THE OIL IN FINAL HEATING UNDER VACUUM    
SECOND HEAT REGENERATION:    
(J) SHUT DOWN COOLER:    
(K) POLISHING:    
SUCTION PRESSURE:    
STEAM:    
2. SPECIFICATIONS OF THE EQUIPMENT    
OIL NEUTRALIZATION PLANT    
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 – A:

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)