1. Agriculture World

Business Ideas in India: How to Start Oil Mill Business

KJ Staff
KJ Staff
oil business
Oil Mill Business

Oil is used extensively by people, due to which demand for different types of oils is increasing day by day. At present, the business of extracting oil from seeds is becoming very popular and successful in our country. If you want you can start this business and earn huge profit from it. This business will be more profitable if you are a farmer and if you grow different types of seeds like mustard, sunflower etc in your own field. 

In an oil mill, you grind the seeds and extract oil from them and then the oil is packed and sold in bottles. But, before starting a mill, you have to buy many types of machines and decide which oil mill you want to start, such as mustard oil, olive oil, sesame oil etc. 

Types of oil 

In India many types of oils are used for cooking and they are :  

  • Mustard oil.

  • Olive oil.

  • Refined oil.

  • Sesame oil.

So, you have many options to open several types of oil mills. 

Oil Mill Business 

You can start this business in small scale, medium scale industry and large scale industry. 

  • Small scale industry - 5 to 10 metric tons of oil is extracted every day in oil extracting mills.

  • Medium scale industry: 10 to 50 metric tons of oil is extracted every day in oil extracting mills.

  • Large scale industry: More than 50 metric tons of oil is extracted every day in oil extracting mills.

How much it costs to open a mustard oil mill? 

  • 15KW/20 HP motor - Rs 40,000.

  • Oil extraction machine - 1 lakh rupees.

  • Empty tins and bottles - 10000 rupees.

  • Power connection ( 3 phase ) - 20,000 rupees.

It will cost you 2 lakhs to open an oil mill which will include labour wages. 

Raw material for oil mill  

  • You can get seeds by planting your own plants such as mustard, sunflower etc. However, it may take some time for you to grow the seeds by yourself. 

  • You can also buy that seed from the shopkeeper selling the seeds or from any farmers.

  • Empty tins and bottles.

Machinery for oil mill 

You can extract oil from the seeds after several processes and different machines are used during each process which are : 

  • Screw expeller.

  • Cooker and filter press with plunger pump and filter cloth.

  • Storage tank for oil.

  • Weighing scale ( Electronic ).

  • Sealing machine.

  • Box stamping.

At the same time, you can use a fully automatic machine to do your oil extraction business, or you can also extract oil through a semi-automatic machine. 

Mustard oil crushing process

How you can buy these Machines  

You can buy by going to Seller or you can buy online by clicking on the link below. The prices of these machines are determined according to their quality. 

Licenses And Certification 

  • You need many types of licenses and certification before starting this business because you can sell your oil in the market only after getting the license and certification.

  • There are two types of licenses related to food items are given by the Government of India. One license is given by Bureau of Indian Standards and the other license is given by FSSAI. Other than this, the state where you are starting this business, you may have to get many types of licenses from the government of that state. 

Oil extraction process 

Oil extraction is done in several stages and with the help of machine you can extract oil from any seeds. 

1) Seed selection 

The seed must be perfect from which you want to extract the oil. If they are you own cultivate seeds then look before placing them into machine that they are not broken.

If you are buying seeds from market or farmer, make sure that seeds are not broken, nor dry, and select only those seeds which are of good quality.


2) Pre-cleaning and Decortications 

Whenever you harvest seeds from plants, many types of small pebbles, soil , dust and other small things are also found in the seeds. It is necessary to do pre-cleaning because soil and small pebbles will be crushed with seeds, which will deteriorate the quality of oil. Therefore, before extracting oil from seeds, you have to remove these types of things.

After removing stones and soil, you have to also remove the straw present in the seeds.

You can get these seeds cleaned by hand or you can also clean them with the help of a machine.


3)  Conditioning of the seeds  

This step is important because conditioning the seeds removes more oil and in this process seeds are put inside the rollers. The seed cells absorb the oil due to passing through the rollers and micro oil droplets are united in them, due to which the oil can be extracted from the seeds easily and fast. 

4) Heating  

To eliminate the various bacteria you have to heat the seed. Keep in mind that each seed requires different moisture conditions and temperatures. 


5) Oil extraction 

You have now put seeds into the machine and they are grinded by the machine. The oil that comes out of it during grinding, is collected in storage tank.


6) Filtration 

Some residues are still in the extracted oil. So, after the oil is removed, it is sieved so that it can be completely cleaned. Even after cleaning the oil, many types of chemical substances are present in it, which are cleaned within the chemical process. 

Before starting the oil mill, you must get the mill insured...

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