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Oil Mil Business: Step by Step Guide to Setup this Super Profitable business

M Kanika
M Kanika
Oil Mil Business
Oil Mil Business

Along with the growing population, there is an increase in the demand for cooking oil as its consumption is also increasing. The business of extracting the oil from various seeds is becoming very successful & popular in every country. India has a unique natural environment for growing different oil crops, including cotton, mustard, peanut & more. Therefore, the raw material is also available in plenty.

Starting an oil mill business is one of the most profitable business ideas. Today, in this article we will provide information about how to start an Oil Mill Business in India.

Understanding of an Oil Mill Business

In an Oil Mill, the seeds are ground & the oil is extracted & then packed in the bottles & sold in the market. However, before starting a mill, there are many types of machines to be bought & various decisions need to be made like, which oil mill he wants to start, such as sesame oil, mustard oil, olive oil, etc.

In India, there are various types of oils used for cooking such as mustard oil, refined oil, olive oil, and sesame oil, etc. you may start the business on a small scale & slowly expand it.

  • Small-Scale Industry: In the small-scale oil extracting mill industry, 5-10 metric tons of oil are extracted each day.

  • Medium-Scale Industry: In a medium-scale oil extracting industry, 10-50 metric tons of oil are extracted each day.

  • Large-Scale Industry: In the large-scale oil extracting industry mill industry, there are more than 50 metric tons of oil is extracted each day.

Steps to Start an Oil Mill Business

Below are some of the steps, which must be followed to start an oil mill business in India:

  • Analyze Market: It is necessary to study the demand for edible oils in different parts of India, as it depends on income & population in different regions.

  • Arrange Finance: If the oil mill business cannot be started with self-owned funds, then in order to start the business the funds can be obtained from banks or from local venture capital firms.

  • Getting Oil Mill Processing Machinery: Machinery is an important requirement in the oil mill business. There are many companies that are supplying oil extraction in the world. There must be proper research to be made to choose the most reliable company from where the oil processing machinery can be bought.

  • Finding Raw Material: It is important to find out the regular source of raw material for this business. Therefore, the business must find a source from where regularly raw material can be supplied.

  • Registration of an Oil Mil Business: It is mandatory to get registered first for starting an oil mill business in India. Business registration is obligatory. Once, the registration is completed, and then the business is granted the trade license as well as the business PAN Card.

License & Certification to Start an Oil Mil Business

  • It is necessary to obtain the License & Certification, while starting an oil mill business in India to obtain so that the oil can be sold in the market.

  • There are two types of Licenses related to Food Items, which are provided by the government o India, it is required to be obtained by the oil mil business.

  • One license is given by the Burau of Indian Standards & the other License is given by the FSSAI.

  • The other types of licenses are required to be obtained from the government of that state, where the oil mil business is set up.

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