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Project Details :
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. 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.
Note: Please Download Project Doc attached with this Project for more information.
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