How to Start Groundnut Oil Production and Refining Business? Emerging Investment Opportunity in Edible Oil Industry.
Groundnut is an important oilseed crop in Nigeria and one third of these seeds is processed for edible oil. Groundnut oil is the main natural edible oil consumed without additives in the middle Mediterranean region. Groundnut oil is one of the most stable vegetable oils in relation to oxidation. The oxidative stability of oils may be influenced by many factors, such as light, metal ions, oxygen, temperature, and enzymes. Groundnut oil is composed of ≈80% of unsaturated fatty acids, with oleic acid comprising an average of ≈50% and linoleic acid 30% of the total fatty acid composition.
Groundnut kernel contains 50-55% of the oil. Groundnut oil is an important edible oil throughout the world. The oil has good nutritional value. And it doesn’t create any cholesterol problem. Hence, it is a popular cooking medium.
Related Projects: - Edible Oils Projects
Benefits of Groundnut Oil
Improves Insulin Sensitivity
Helps in Hair Growth
Lowers the Signs of Ageing
Prevents Arthritis
Lowers the Risk of Cancer
Groundnut oil is a great source of vitamin E.
Hydrates the Lips
Prevents Acne
Keeps Blood Pressure Levels under Control
Improves Blood Circulation
No Cholesterol
Characteristic Antioxidant Content
Cooking With Groundnut Oil
Groundnut Oil is high in Vitamin E
How to Start a Groundnut Oil Processing Business?
Cooking oil is an important and essential item in the FMCG sector. An average Indian consumes 15 Kg of oil in a year. Compared to other oils like sunflower oil, cottonseed oil, and soy oil, groundnut oil has more nutritional value. In addition to cooking, groundnut oil is used in the bakery and confectionery industry. Groundnut oil is used in soaps, salad oils, mayonnaise, etc. Groundnut oil is expensive compared to other oils. It has more vitamins, minerals, nutritional value and low levels of cholesterol. It is also suitable edible oil for Indian cooking.
In India, groundnut is cultivated in 5.8 million hectares. Gujarat is the highest producer of groundnut oil in India. Groundnut seed contains 50-55% of the oil. It is one of the best oil seeds to extract oil from.
Groundnut Oil Production License & Registration
In establishing a groundnut oil production unit, you will need to obtain several different license and registration from different Government authority.
Company Registration with ROC
Trade License
SSI Registration
Factory License
Food Operator License
BIS Certification
‘No Objection’ from Pollution Control Board
AGMARK Certification
Fire License
The Food Standards and Safety Rules, 2011, and rules made under IS 544: 1968 permit additions of antioxidants in groundnut oil for a higher shelf life of the oil. However, under the scheme of labeling of environment-friendly products, the presence of antioxidants within a prescribed limit is a requirement as per notification of the Ministry of Environment and Forests. These are the common license and certification requirement. Check with your local DIC authority about any other required formalities.
GROUNDNUT OIL PRODUCTION PROCESS
Over 85% of the oil from the seed is extracted using the mechanical press. Groundnut undergoes many processes to produce most of its oil content. Following is the groundnut oil extraction process:
Storage → Cleaning → Dehulling → grinding or rolling → Heating → Pressing → Refining → Packaging.
1. Cleaning:-
Clean the ground nuts properly to remove, dirt, sand, and spoilt seeds. Use dry screening to remove all over or undersized seeds.
2. Dehulling:-
The outer seed coat of groundnut is removed by a power-operated dehuller. Outer seed coat does not contain oil and hence is removed to avoid junk in oil cake.
3. Grinding or rolling:-
Oil extraction is maximum with smaller particles. Grinding reduces the seed size. Rolling the seeds produces flakes. Large oil mills might use both grinding and rolling to extract maximum oil.
4. Heating:-
Heating increases oil yield. It kills the enzymes that deteriorate oil quality.
5. Pressing:-
Pressing the processed seeds using a lever press, mechanical expeller or hydraulic press separates the oil.
6. Refining:-
The extracted oil is further refined to remove dust or dirt. Refining adds great value to the oil.
Related Projects:- Edible Oils, Non Edible Oils, Fats, Vegetable Fats and Oils, Corn Oil, Cooking Oils, Rice Bran Oil, Castor Oil, Sesame Oil, Linseed Oil, Vanaspati Ghee Projects
Market Outlook
Peanut oil is an edible vegetable oil, which is derived from peanuts. Peanuts are legumes and are native to Latin America and various other tropical regions. Peanut oil is utilized either to enhance the flavor of the underlying food or as a base for cooking. It possess a high smoke point comparative to other cooking oils, and is used for frying food. Its major component fatty acids include oleic acid, linoleic acid, and palmitic acid. In addition, it contains arachidic acid, stearic acid, lignoceric acid, behenic acid, and other fatty acids.
The global peanut oil market is highly congested with high level of competition among key players. Moreover, since there is no unique functionality of peanut oil when compared to other vegetable oils, the demand is anticipated to remain stagnant throughout the forecast period. The emergence of soybean oil is as an important reason for the declining growth of the global peanut oil market. The impact of new and unique oils is predominantly strong in developed regions, since consumers have access to new products and have a strong purchasing power. Peanut oil is relatively healthy owing to low percentage of trans-fats, saturated fats, and cholesterol. Moreover, the nutty flavor offered by peanut oil is a crucial factor, which is anticipated to accelerate the demand for peanut oil. However, high price of peanut oil and increase in demand for soybean oil hamper the market growth. Global peanut oil market is set to witness a steady CAGR of 4.25% in the forecast period of 2019- 2026.
The Peanut Oil is Segmented On the Basis of Type, Application, and Packaging.
On the basis of type, the market is segmented into refined and unrefined peanut oil. The refined oil is refined through bleaching and deodorization. This process essentially removes the components that might cause peanut-based allergies thereby making refined peanut oil, non-allergic. The high smoke point offered by refined peanut oil makes it an attractive frying oil for hotels and restaurants. Unrefined peanut oil offers the nutty taste of peanuts and is, therefore, an ideal choice for salad dressings.
On the basis of application, the market is segmented into food, personal care products, pharmaceutical and others. Food is the dominant segment and is expected to remain so due to the nature of the market. The increasing interest in incorporating plant-based or natural solutions into daily products is an important driving factor for the personal care products segment. In the personal care products segment, peanut oil finds application in several categories such as skin and baby care products. Peanut oil is also used in a wide range of pharmaceutical products such as weight loss, cholesterol-lowering, cardiac and constipation drugs.
On the basis of packaging, the market is segmented into plastic bottles and containers, glass containers, plastic pouches, and cartons. Convenience, cost and shelf life are important parameters to gauge the performance of any kind of packaging method. The plastic bottles and containers and plastic pouches are important and dominant segments due to their particular applicability in preparing food products.
Key Players
ADM, Bunge, Cargill, Wilmar International, Corbion, Shandong Luhua, Cofco, Amanah Oil, Ventura Foods, Yihai Kerry, Longda, Qingdao Changsheng, Shangdong Jinsheng, Shandong Bohi Industry, Xiamen Zhongsheng, Hunan Jinlong, Sanhe hopefull, Dalian Huanong, Shandong Sanwei, Qingdao Tianxiang
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