Mustard Oil Refining Unit Overview
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EIRI Board of Consultants and PublishersMustard Oil Refining Unit Overview
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EIRI Board of Consultants and Publishers- Introduction
- Recognizing Opportunities
- Contents
- Appendix A: Cost Estimation
MUSTARD OIL PRODUCTION
[EIRI/EDPR/3742] J.C.: 1835
INTRODUCTION
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.
[Link] 1
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.
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CONTENTS
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
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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
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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
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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)
COST ESTIMATION
Plant Capacity 10 Ton/Day
Land & Building (6000 [Link].) 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%
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Common questions
Powered by AIThe use of oil cake in the Indian mustard oil industry offers several benefits and challenges. Oil cake serves as an excellent source of animal feed, providing a protein-rich diet for livestock, which is a valuable by-product that adds economic value to the oil extraction process . This contributes to the sustainability of both the agricultural and livestock sectors. However, challenges include ensuring the oil cake quality and safety standards to make it suitable for livestock consumption, as contamination or spoilage can lead to health issues in animals . Additionally, there are logistical challenges in transporting oil cake from production to areas where it's needed, which can be particularly difficult in remote regions . These factors require careful management to maximize the benefits while minimizing associated risks.
The mustard oil industry in India differs from other major oil-producing countries in several ways. Unlike countries such as Indonesia and Malaysia that predominantly produce and export palm oil, India focuses on mustard oil among other types, due to its suitability to local agricultural conditions and traditional usage in cooking . India's oil industry is highly diversified with a larger number of commercial varieties of oil seeds, reflecting its broad agricultural base . Another difference is the consolidation of oil extraction processes in centralized plants in countries like the USA, whereas India still sees a significant role for tiny decentralized units that cater to local and remote demands . This reflects a high degree of fragmentation in India's production process compared to the more industrialized and consolidated approaches in other countries .
The mustard oil extraction process aligns with sustainability and local economic development goals in several ways. Small-scale, decentralized oil extraction units utilize locally available raw materials, reducing the carbon footprint associated with long-distance transportation . This localization supports the regional economy by providing employment and retains capital in the community rather than exporting it to large cities or international markets . The by-product, mustard oil cake, can be used as animal feed, promoting a circular economy where waste is minimized and used productively . This approach enhances food security and stability in rural areas where agriculture and related industries form economic backbones .
The key market influencers in the Indian mustard oil sector include the availability of mustard seeds and other oilseeds, which greatly affects production levels . Government policies such as import duties on edible oils can also shape market conditions by affecting the prices of imported alternatives like palm or soybean oil . Consumer preferences for mustard oil, especially in Northern and Central India where it's traditionally used as a cooking medium, also play a significant role . Price trends and inflation can further influence consumer behavior and demand for mustard oil . Moreover, technological advancements and improvements in oil extraction efficiency can impact the competitiveness and cost structure of the industry .
The viability of small mustard oil extraction units in rural India depends on several factors. First, the availability of raw materials like mustard seeds locally is crucial as it reduces transportation costs and ensures a consistent supply . Second, the use of second-hand bottles or selling oil in drums can minimize capital blockage due to difficulty in obtaining glass or plastic bottles in large quantities in remote areas . Third, the profitability is significantly impacted by the sale of the by-product, oil cake, which is used as animal feed . Finally, establishing such units in areas where oil from large refineries is expensive or inaccessible provides a competitive advantage, especially in supplying to remote and distant places .
Mustard oil production has benefited significantly from mechanization advancements. Historically, primitive mills and presses were used to extract oil, which were later replaced by more efficient hydraulic presses towards the end of the 18th century . Subsequently, the screw press, also known as an oil expeller, further improved efficiency by providing a continuous extraction process, enhancing both the yield and quality of the oil . These mechanized processes allow for higher efficiency, lower operational costs, and increased production scales, which are crucial in meeting the growing demand for edible oils .
The mustard oil industry addresses the bottling and storage challenges in remote areas by adopting several strategies. One approach is the use of second-hand bottles which reduces the capital blockage associated with procuring new glass or plastic bottles in large quantities . Alternatively, oil can be sold in drums to provision stores in nearby towns or cities, simplifying logistics and reducing the need for immediate bottling infrastructure . This strategy allows the oil producers to overcome the logistical and financial hurdles associated with traditional packaging materials while maintaining market access in remote locations.
Decentralization in mustard oil milling might be economically preferable in certain Indian regions because it reduces transportation costs associated with moving seeds or finished products to or from centralized locations, which can be significant in remote or less accessible areas . It provides local employment and supports local agricultural ecosystems, offering opportunities for self-employment and entrepreneurship . Decentralized units can quickly adapt to local market demands and provide fresh products directly to consumers, avoiding some of the logistical challenges of distribution over longer distances . Furthermore, such units contribute to local economic development by retaining value within the community rather than exporting it to larger city-based refineries.
Establishing tiny decentralized oil extraction units in areas lacking large refineries can have several economic impacts. Firstly, it offers employment opportunities to local populations, particularly benefiting first-generation Tribal entrepreneurs by providing modest investment opportunities with simple operations . Secondly, these units can help in reducing the cost of cooking oils in remote areas by minimizing transportation costs and the associated markup from buying back refined oil from distant refineries . Additionally, by keeping the added value within the local community through primary processing, it can boost local economies and reduce dependency on external sources. The local production and consumption of mustard oil and its by-products like oil cake can also encourage local agricultural growth and stability .
The relatively low per capita consumption of edible oils in India, compared to developed countries, can be attributed to several factors. One primary factor is the economic disparity, as income levels in India are lower than in developed nations, limiting the ability of individuals to purchase more expensive food items including oils . Additionally, cultural and dietary practices play a significant role, as traditional Indian diets may not rely as heavily on cooking oils as Western diets, focusing instead on boiled or steamed foods. Moreover, rural and remote areas might have limited access to a variety of oils due to distribution challenges, further impacting consumption patterns .
