What is a rice bran oil project report?
A rice bran oil project report is a detailed project report (DPR) for a unit that extracts oil from rice bran or refines crude rice bran oil into edible oil. It sets out the process, machinery, crude oil sourcing, licences, project cost, means of finance, five-year projections, DSCR and break-even that a bank needs before it lends.
Rice millers, oil packers and new entrepreneurs use it to size the plant and apply for a term loan; lenders use it to judge whether the unit can repay.
Also known as: rice bran oil business plan, project report on rice bran oil, rice bran oil refinery project report, rice bran oil mill project report, DPR for rice bran oil plant.
What a bank checks in a rice bran oil project report
A refinery runs on a thin spread between crude and refined oil, so lenders look hard at a handful of numbers. These are the values in our sample report and why each one matters.
Most of the selling price goes back into crude oil. A report that shows a much lower share is assuming a price spread the market rarely gives.
Bleaching earth, carbon and acids make up the rest. A rise in crude price, or a jump in its free fatty acid, should be tested in the projections.
The deodoriser, chillers and boiler all draw energy. Fuel for the thermic fluid heater is easy to understate when the boiler fuel is not fixed yet.
Crude comes by tanker and suppliers give little credit, only 10 days in the sample. That stock is the biggest part of the working capital limit.
Values are the assumptions in our illustrative sample. Your report uses figures for your capacity, crude suppliers and market.
Rice bran oil manufacturing plant cost in India
Cost depends first on where you enter the chain. A refinery buys crude oil and sells edible oil; a solvent extraction plant buys bran and sells crude oil and de-oiled bran. Our sample report models the refinery; the other two tiers are indicative ranges.
Small refinery and packing
₹2–3.5 crore
About 3–5 MT per day of refined oil, crude bought in
- Refinery and filling machinery₹1–1.6 crore
- Shed and civil works₹40–80 lakh
- Working capital margin₹20–40 lakh
MSME term loan; PMFME subsidy if the unit qualifies
Refinery and packing unit
₹567 lakh
10 MT per day, 3,000 MT per year
- Plant and machinery₹272 lakh
- Land and building₹161 lakh
- Working capital margin₹63 lakh
Term loan ₹425 lakh (75%), promoter ₹142 lakh
Bran solvent extraction plant
₹10–20 crore
About 50–100 MT per day of bran in
- Stabiliser, extractor and desolventiser₹5–10 crore
- Boiler, hexane storage and safety₹1–2 crore
- Land, building and margin₹3–6 crore
MSME term loan; CGTMSE cover up to ₹10 crore
Small refinery and solvent plant ranges are indicative and exclude a refinery attached to the solvent plant. Costs vary with location, automation and equipment make.
Rice bran oil manufacturing process
Rice bran oil is made in two plants that are often separate businesses. The first two steps happen at a solvent extraction plant; the sample report's refinery buys that crude oil and carries out the rest by physical refining.
- Bran stabilisation and pelleting
Fresh bran from the rice mill is heated to stop the enzyme that splits its oil into free fatty acid, then pelleted so solvent can flow through it.
- Solvent extraction
Hexane washes the oil out of the pellets; the solvent is recovered and reused, leaving crude oil and de-oiled bran for cattle feed.
- Degumming
Phosphoric or citric acid and water are mixed into warm crude oil to pull out gums that would darken the finished oil.
- Dewaxing
The oil is cooled slowly so the natural rice bran wax forms crystals that a filter can hold back.
- Bleaching
Bleaching earth and activated carbon take out colour under vacuum and are then filtered off in leaf filters.
- Deodorising and deacidifying
Steam under high vacuum strips free fatty acids and odour, which are condensed and sold as fatty acid distillate.
- Winterising and packing
The oil is chilled and polish filtered so it stays clear in winter, then filled in bottles, pouches and 15 kg tins.
Why most rice bran oil is physically refined: crude often arrives with high free fatty acid. Caustic neutralisation would turn more good oil into soapstock and take much of the oryzanol with it, so steam stripping usually wins.
Raw materials for a rice bran oil refinery
Crude rice bran oil is bought by the tanker from bran solvent plants, priced partly on its free fatty acid and wax content. Every tanker should be tested before unloading, because a few points of extra acidity cut the refined yield.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Crude rice bran oil | 92% | 1,624.19 |
| Bleaching earth and activated carbon | 4% | 70.62 |
| Phosphoric acid and citric acid | 2% | 35.31 |
| Filter aid and nitrogen | 2% | 35.31 |
| Total | 100% | 1,765.43 |
Packing material is costed separately in the sample, at about 3.7% of sales.
Machinery for a rice bran oil refinery
The deodoriser is the heart of a physical refinery and the largest single item in the sample. Dewaxing chillers are the part a general edible oil refinery may not have, and rice bran oil cannot do without them.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Degumming and dewaxing section with chillers | Removes gums and crystallises wax for filtering | 48.93 |
| Bleaching section with leaf filters | Takes out colour and filters off the spent earth | 38.05 |
| Deodoriser with fatty acid recovery | Strips free fatty acid and odour under vacuum | 70.67 |
| Vacuum system and steam ejectors | Holds the vacuum the bleacher and deodoriser need | 27.18 |
| Thermic fluid heater and steam boiler | Heats the oil and supplies stripping steam | 32.62 |
| Crude and refined oil storage tanks | Holds tanker loads and finished oil | 21.75 |
| Bottle, pouch and tin filling line | Packs oil for retail and bulk buyers | 24.46 |
| Quality control laboratory | Tests acidity, moisture, colour and oryzanol | 8.15 |
| Total plant and machinery | 271.81 | |
Costs are the sample report's estimates for a 10 MT per day refinery. Get current quotations before you finalise.
Market for rice bran oil in India
Households buy rice bran oil for its mild taste and high smoke point, and snack makers use it for frying. It is also a common partner oil in multi-source blended edible oils. Demand is spread across 1-litre pouches, bottles and 15 kg tins, so a new unit can start with bulk buyers and build retail later.
- Edible oil distributors and wholesalers
- Supermarkets and kirana stores
- Snack, namkeen and bakery manufacturers
- Hotels, restaurants and caterers
- Brand owners buying contract-packed oil
- Blenders making multi-source edible oil
Where a refinery gains: locate near the bran solvent plants of a rice belt to cut crude freight. Fatty acid distillate and rice bran wax also find buyers; the sample leaves them out, so its profit is on the cautious side.
Licences and approvals for a rice bran oil unit
Edible oil units carry more paperwork than most food plants. These are the product-specific approvals, as of October 2026, on top of Udyam, GST and the factory licence.
| Food safety | FSSAI licence for manufacturing; the product must meet the FSSAI standard for rice bran oil, and IS 3448 is the BIS specification |
|---|---|
| Edible oil supply order | Registration under the Vegetable Oil Products Production and Availability (Regulation) Order, with monthly production and stock returns; the order was amended in 2025 |
| Pollution board consent | Consent to establish and operate from the State Pollution Control Board; vegetable oil units, including solvent extraction and refineries, appear in the Red category list |
| Hexane storage | PESO licence under the Petroleum Rules, 2002, needed by solvent extraction plants that store hexane |
| GST and HSN | Rice bran oil is classified under HSN 1515 90 40 at 5% GST, as per a 2019 advance ruling; confirm the current rate with your CA |
| Laboratory testing | In-house checks for acid value, moisture and oryzanol; FSSAI's test method corrects the acid value for oryzanol, which otherwise inflates it |
Loans and schemes for a rice bran oil unit
PMFME
35% subsidy, up to ₹10 lakhCredit-linked capital subsidy for micro food processing units. The promoter puts in 10% and the bank lends the rest.
PMEGP
Manufacturing projects up to ₹50 lakhMargin-money subsidy of 15–35% for new units. Fits only a very small refining or cold-press unit.
MSME term loan with CGTMSE
Guarantee cover up to ₹10 croreThe usual route for a refinery or solvent plant. Collateral-free cover for eligible micro and small enterprises.
Scheme limits change. Confirm current terms with the bank or the scheme portal before applying.
Mistakes that weaken a rice bran oil project report
- One refining yield for every grade of crude
Refining loss rises with free fatty acid and wax. A report that assumes low-acid crude overstates output when the real supply is high-acid.
- Using retail MRP as the selling price
Distributors and blenders buy at ex-factory rates well below the pouch MRP, so revenue and DSCR come out too high.
- Skipping or undersizing dewaxing
Rice bran oil turns cloudy in cold weather if wax is left in. Buyers reject it, and the chillers then have to be added after the loan.
- Too little working capital for crude
Crude is bought in tanker loads on short credit. Without enough stock days in the projections, the cash credit limit runs dry within months.
- Leaving out compliance costs
Monthly VOPPA returns, FSSAI sampling and pollution consent renewals all take staff time and lab fees that belong in overheads.
How NPCS helps you set up a rice bran oil unit
- Route and capacityDecide between a refinery, a bran solvent plant or both, and size it to the crude or bran you can source.
- Machinery and suppliersCompare refinery and extraction equipment, with dewaxing and fatty acid recovery sized correctly.
- Bank-ready project reportProjections, DSCR and working capital built on realistic crude prices and refining loss.
- Approvals and layoutFSSAI, VOPPA, pollution consent and, for solvent plants, the PESO licence for your state.
NPCS's published client list shows 17 edible oil assignments, including refined edible oil units and a cold pressed rice bran oil project, for entrepreneurs and companies in India and abroad.
What's inside the rice bran oil sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
19 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
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Rice Bran Oil project report: frequently asked questions
How much does it cost to set up a rice bran oil plant in India?
It depends on the route. A small refinery that buys crude oil may need roughly ₹2–3.5 crore, while a bran solvent extraction plant of 50–100 MT per day can need ₹10–20 crore. These are indicative figures. Our sample report models a 10 MT per day refinery and packing unit at ₹566.96 lakh, including land, building and working capital margin.
How much oil do you get from rice bran?
Roughly a fifth of the bran by weight. In one ICAR study, bran from parboiled paddy gave 23% oil and microwave-stabilised raw bran 21%. Plant recovery depends on how fresh the bran is and how well it was stabilised. The free fatty acid level of the crude oil then decides how much is lost in refining.
Which machines are needed for a rice bran oil refinery?
A physical refinery needs degumming and dewaxing vessels with chillers, a bleacher with leaf filters and a deodoriser with fatty acid recovery. Around them sit a vacuum and steam ejector system, a thermic fluid heater and boiler, storage tanks and a filling line. In our sample report the deodoriser is the largest single item at ₹70.67 lakh.
Is rice bran oil business profitable?
In our illustrative sample, a 10 MT per day refinery reaches a 20% return on investment in Year 3. Break-even is at about 44% of capacity and payback takes about 3.9 years. Real profit depends mostly on the gap between crude and refined oil prices, the free fatty acid level of the crude, and sales of fatty acid distillate and wax.
What licences are needed for a rice bran oil unit?
You need an FSSAI licence for manufacturing, registration and monthly returns under the Vegetable Oil Products Production and Availability (Regulation) Order, and consent from the State Pollution Control Board. Vegetable oil units, including solvent extraction and refineries, appear in the Red category list. A solvent plant also needs a PESO licence to store hexane.
Can I get a PMEGP or PMFME subsidy for a rice bran oil unit?
Possibly, for a small unit. PMEGP covers manufacturing projects up to ₹50 lakh with a 15–35% margin-money subsidy. PMFME gives micro food processing units a 35% credit-linked capital subsidy, capped at ₹10 lakh. Larger refineries and solvent plants usually take an MSME term loan, which may get CGTMSE guarantee cover up to ₹10 crore.
Is the rice bran oil project report PDF free, and can I use it for a loan?
The sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report; its figures are representative and not based on a real project, so it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, location and loan scheme.
Sources and references
- Vegetable Oil Products Production and Availability (Regulation) Order, 2011Department of Food and Public Distribution, Government of India, checked Oct 2026
- Govt amends VOPPA Order to tighten edible oil regulationsAll India Radio News, checked Oct 2026
- List of Red category industriesPunjab Pollution Control Board, checked Oct 2026
- List of petroleum products requiring licencePetroleum and Explosives Safety Organisation, checked Oct 2026
- Advance ruling KAR ADRG 11/2019 on rice bran oilAuthority for Advance Ruling, Karnataka (GST Council website), checked Oct 2026
- Manual for Analysis of Oils and FatsFood Safety and Standards Authority of India, checked Oct 2026
- Rice bran oil comparative test (IS 3448 parameters)Consumer Voice, published by the Department of Consumer Affairs, checked Oct 2026
- Stabilization of rice bran using microwave: process optimization and storage studiesICAR KRISHI repository, checked Oct 2026
- PMEGP scheme detailsMSME Department, Government of Uttar Pradesh, checked Oct 2026
- PM Formalisation of Micro Food Processing Enterprises (PMFME)District Administration Khordha, Government of Odisha, checked Oct 2026
- Credit Guarantee Scheme guidelinesOffice of the Development Commissioner (MSME), checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.