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TRANSCRIPT
A Report on
Rice Bran Oil
16 February 2011
`
Rice Bran Oil
India is the second largest producer of Rice in the World.
Rice Bran Oil is a Non Conventional Oil. It is a by-product of the rice
milling industry from which rice bran oil is extracted. Typically rice
bran accounts for 7 –8 % of the rice produced and the recovery of
rice bran oil from rice bran is usually 15%. Rice bran oil is used for
human consumption. Anti-oxidants of Vitamin E group are naturally
occurring in rice bran oil. Appearance of rice bran oil ranges from cloudy to
clear depending on the degree of dewaxing and winterization process applied. It also has several
industrial uses. After oil extraction, the by-product obtained is de-oiled rice bran.
Bran oil may be also extracted for use by itself for industrial purposes
(such as in the paint industry), or as a cooking oil, such as rice bran oil.2
Global Scenario
Global production of rice bran oil fluctuates between 10 - 14 lakh tons depending on rice production.
Rice Bran Oil is extensively used in Japan, Korea, China, Taiwan and Thailand as 'Premium Edible Oil'.
India, China, Japan and Myanmar are important producers of rice bran oil constituting more than 95 % of
global production.
India is the largest importer of rice bran oil followed by Japan.
Indian Scenario
India produces around 7 – 9 lakh tons of rice bran oil.
India imports around 40,000 – 45,000 tons of rice bran oil.
In normal scenario, India has a capacity to process 1 million tonne of rice bran oil 1. This year 8,30,000
tonne is to be produced. The previous year about 8,00,000 tonne was produced, out of which 7,80,000
was edible rice bran oil and 20,000 was non edible rice bran oil. India exports 20,000 – 30,000 tons of rice
bran oil. India imports nearly 86 lakh tonnes edible mainly from Malaysia and Indonesia.
Important World Rice Bran Oil Markets
India, Japan and China are largest market of this commodity.
There is no futures market for rice bran oil in the world except in India
Rice Bran grains
Price Volatility
Month-to-Month Variation in Ricebran Oil Prices at Mumbai (1994-2003)
Variation in % <2 2-5 5-10 >10
No: of times 31 30 35 17
In % 27.43 26.55 30.97 15.04
Factors Influencing Rice Bran Oil Markets
i) The development of the industry with respect to the actual production of rice bran and oil against
the potential production
ii) Paddy production in the country
iii) Rice kernel maturity level.
iv) Paddy milling and oil processing methods
v) Demand – supply scenario
vi) Export demand
Seasonality for Production of Rice Bran Oil
Depends on the production of Paddy which is a Kharif crop ( Summer – Monsoon)
Paddy crop ( Rice Bran) depends on
- Climate Conditions
- Labour
- Irrigation / Water Supply
- Methodology of extraction – Rice Milling
- Warehouse / Storage
- Fertility of the soil
Growth Drivers
India is among the largest vegetable oil importers in the world. The demand for edible oil has been going
up considerably for several years now, around Seven percent annually. The demand is picking up fast in
small towns and villages. Rural consumers that now have deeper pockets are spending on this
commodity. Government’s schemes such as the National Rural Employment Guarantee Act (NREGA) have
handed more money in the hands of those living in rural areas.
According to the estimates, by October 2010, vegetable oil imports by India could rise to 9.5 million
tonnes, which would be around nine percent up over the previous year. Indonesia and Malaysia sell Palm
oils while Soy oil is being sold by Brazil and Argentina.
Import of Edible Oils (in MT)
Nov. ’09 to
Jan.’10
Month 2009-10 2008-09 %
Edible Non-edible Total Edible Non-edible Total Change
Nov.'09 712,677 41,289 753,966 519,032 36,310 555,342 + 36%
Dec.’09 761,835 25,588 787,423 719,125 26,438 745,563 + 6%
Jan.’10 827,182 45,213 872,395 856,690 31,412 888,102 - 2%
Total2,301,69
4112,090 2,413,784 2,094,847 94,160 2,189,007 + 10%
Source: Solvents Extractors Association of India
According to the Department of Food and Public Distribution System (PDS), Groundnut,
Mustard/Rapeseed, Sesame, Safflower, Linseed, and Niger seed/Castor are the major traditionally
cultivated oilseeds. It says Soybean and Sunflower have also assumed importance in recent years. Among
plantation crops, Coconut is most important. Efforts are being made to grow oil palm in Andhra Pradesh,
Karnataka, Tamil Nadu in addition to Kerala and Andaman & Nicobar Islands. Among the non-
conventional oils, Rice bran oil and Cottonseed oil are the most important. In addition, oilseeds of tree
and forest origin, which grow mostly in tribal inhabited areas, are also a significant source of oils, it says.
According to the figures by the Solvents Extractors Association of India, the import of vegetable oils
during January 2010 was 872,395 tonnes, compared to 888,102 tonnes in January, 2010, consisting of
827,182 tonnes of edible oils and 45,213 tonnes of non-edible oils. The overall import of vegetable oils
during November 2009 to January 2010 is reported at 2,413,784 tonnes compared to 2,189,007 tonnes
i.e. up by 10 percent.
The Union government set up a technology mission to boost the oilseeds sector in 1986. This has led to an
increase in the area under cultivation, with increase in production to 24.8 million tonnes in 1998-1999
from 11.3 million tonnes in 1986-87. The production of nine major oilseeds is estimated to be about 28.21
million tonnes during 2007-08, according to the estimates of Ministry of Agriculture. The government’s
liberalization policy has made the sector competitive and has seen several Indian and foreign players in
the market.
Process Flow Chart before the extraction of Rice Bran Oil
The above chart shows the process of how Rice Bran is converted to Polished Rice and the Bran
undergoes Stabilization process to maintain the pH level of Bran so that the lipase activity would be
negligible and within safe limit for Free Fatty Acids (FFA) which is 2-4 percent for edible bran, it inactivates
enzymes to nearly zero level.5
Paddy
Shelling
Cleaning- Destoning
Separation
Polishing
Rice
Supply to Solvent Plant
Stabilization
Bran
Husk
Rice Miller
Procedure for extraction of Rice Bran Oil
Rice bran, called nuka in Japan, is a valuable
commodity in Asia and is used for many daily needs.
It is a moist, oily inner layer which is heated to
produce oil.
There are two types of Rice Bran Oil extracted
i) Edible Rice Bran Oil – oil extraction of 20-
28%
ii) Non Edible Rice Bran Oil – oil extraction of
12-18%
The Oil extraction from par boiled rice is more than from raw rice.
Rice Bran Oil is further classified as Crude Rice Bran Oil and Refined Rice Bran Oil.
Extracting Process
By weight, rice bran has 17% oil content. After
the refining process `, the refined oil weighs only
12% of the rice bran raw material.
The extracting process starts with raw material
preparation. Rice Bran is first screened. It is then
heated by steam at temperature higher than 100
degrees Celsius to stop Lipase hydrolysis in rice
bran prior to extraction.
Advanced extracting technology and techniques
were developed with technical assistance from
German and Belgian engineers in order to come
up with Crude Rice Bran Oil that is high in
Vitamin E and Oryzanol. The Crude Rice Bran Oil
is forwarded to the refining process for purifying
and packing.
Refining Process
To make crude rice bran oil to be edible oil, Gum, Free Fatty Acid, color pigment, odor- volatile matter and
wax have to be removed from Rice Bran Oil.
Conventional Refining Process
Free Fatty Acid in crude rice bran oil is
removed by neutralize the oil with caustic
soda and become soapstock. In the same
time, gamma Oryzanol, Tocopherol,
Tocotrienol and some color pigment also
been removed from rice bran oil. Refined
rice bran oil from this process has lighter
colour, less gamma-Oryzanol, less
Tocopherol, less Tocotrienol.
Physical Refining Process
With this process, Free Fatty Acid in crude rice bran oil is removed by heat and vacuum in De-Acid process
and let most of gamma Oryzanol, Tocopherol and Tocotrienol remain in rice bran oil.
There are many uses of Rice Bran Oil
Uses of Edible Rice Bran Oil : Cooking Oil, De-oiled Cake, Livestock feed, cosmetics
Uses of Non Edible Rice Bran Oil: Soaps, Detergents, Biodiesel, Chemicals, Painting
The Residue of Rice Bran oil is used in selling it as livestock feed.
Facts About Rice Bran Oil
i) Lowers Cholesterol
ii) Longer Shelf life for fried items and absorbs less oil compared to others
iii) Good for Heart
iv) Good for BP Patients
Government Subsidies
i) Exemption from Sales Tax to promote Rice Bran Oil – (Period : 1998 -1999)
ii) Granted permission to mix two types of edible oil to maintain the demand and supply
iii) Entrepreneurs can avail a grant-in-aid assistance in the form of equipment for some of the unit
operations for the establishment of 50 tpd rice bran oil refinery employing enzymatic degumming
and dewaxing process developed by IICT under the Programme “Popularization &
Demonstrations in Post-Harvest Technologies” of Technology Mission on Oilseeds, Pulses and
Maize, Dept. of Agriculture & Cooperation, Ministry of Agriculture, Govt. of India, New Delhi.6
Players in the market
The total Edible Oils Market in India is around Rs 1000 billion of which the share of the branded segment
is Rs 120 billion.
Organised Player Base Unorganised Player Base
Emami Kolkata AP Solvex Punjab
Ruchi Soya Indore Sethia Oils Kolkata
Marico Mumbai Maheshwari Solvent Gondia, Maharastra
ITC (ITC Agro) Secunderabad Mother Diary Noida
Lakshmi Energy & Foods Chandigarh Purti Vanaspati Pvt Ltd Kolkata
A.P.Organics Pvt Ltd Punjab (Ricela)
SKM Group Erode (Porna)
Vaighai Agro Products Ltd Madurai
While India produces major oil seeds but the demand has been rising considerably over the years.
Unbranded players dominate the edible oils market even as branded players are trying to tap into high
consumption areas.
The country has a potential to produce 12.5-13 lakh tonne of rice bran oil of which only 7.5 lakh tonne is
produced and only 2 lakh tonne is being directly used as refined rice bran oil for cooking while the rest is
being used in blended form or as vanaspati.
In the last six to seven years, 30 refining plants have come up that are refining crude rice bran oil. –
Source ET 2007 3
News
1. The Emami group is eyeing India’s 14 million tonne per annum edible oils market in a big way. The
company has launched varied packs of oils of Sunflower, Mustard, Soybean, Palmolein, etc. The
company is hoping to grab a 10 percent market pie by 2015.
2. Rice bran oil manufacturers in the country, A P Solvex Limited from Punjab and Sethia Oils Limited
of West Bengal, plan to set up jointly an oil extraction and refining plant in Indonesia with an
investment of Rs 30 crore. After China and India, Indonesia is the third largest producer of paddy
with a production figure of 63 million tonne annually. 4
3. Raw material shortage hits the Rice Bran Oil Industry as on 23rd Dec 2010 7. Also the Edible Oil
prices rise substantially as on 2nd Feb 2011 8.
4. Pepsico to purchase a plant in Indonesia for AP Solvent –Sethia Oils (JV) for constant supply of
Rice Bran Oil for their products: Lays, Kurkure, etc. (Target Indonesia : Potential Market for Rice
Bran Oil )
5. 20th Dec 2009, Large Rice Bran Oil refinery for Marico - The Marico group selected Desmet
Ballestra technologies for the implementation of its brand new Rice Bran Oil refinery. With an
excellent track record in the field of Rice Bran Oil, Desmet Ballestra is now established as the only
technology provider, in the rice bran processing belt in India, who can provide a total solution to
process this special oil.
6. Ruchi Soya to come up with palm plantations in Asia and Africa in next 5 years.
7. The AP Solvex Group company based at Dhuri in Punjab will be investing Rs 25 crore to increase
its current 350 tonne-a-day capacity by 250 tonnes. -3rd Sept 2008 9
8. Adani Wilmar has shown interest in Rice Bran Oil.
India is one of the largest oilseed producers in the world. In 2007-08, the country produced 28.21 million
tonnes of nine cultivated oilseeds. India produces six to seven percent of the world’s oilseeds. In 2006-07,
7.3 million tonnes of oilmeals, oilseeds and minor oils were exported, as against 5.06 million tonnes in
2005-06. This was exports worth Rs 7,997 crore, as against Rs 5,514 crore
Groundnut - Mustard - Sesame - Safflower - Linseed
- Niger seed - Castor seed - Soybean - Sunflower
Oilseeds production and consumption
Oil year (Nov-Oct.)Production of
Oilseeds
Net availability of edible
oils from all domestic
sources
Consumption of Edible Oils (from
domestic and import sources)
2000-2001 184.40 54.99 96.76
2001-2002 206.63 61.46 104.68
2002-2003 148.39 46.64 90.29
2003-2004 251.86 71.40 124.30
2004-2005 243.54 72.47 117.89
2005-2006 279.79 83.16 126.04
2006-2007 242.89 73.70 115.87
2007-2008 297.55 86.54 142.62
Source: Ministry of Agriculture
Mapping Rice Areas in South Asia
References
1http://www.business-standard.com/india/news/raw-material-shortage-hits-rice-bran-oil-industry/419238/
2 http://www.commodityonline.com/commodities/oil-oilseeds/ricebranrefinedoil.php
3 http://economictimes.indiatimes.com/markets/commodities/companies-develop-a-taste-for-rice-bran-
oil/articleshow/2388337.cms
4http://economictimes.indiatimes.com/markets/commodities/rice-bran-oil-manufacturers-to-set-unit-in-
indonesia/articleshow/4855686.cms
5http://www.techno-preneur.net/information-desk/sciencetech magazine/2011/jan/Mini_Rice_Mill.pdf
6 http://www.iictindia.org/RiceBranAssistance/ricebrandetails.htm
7http://economictimes.indiatimes.com/markets/commodities/after-onion-edible-oil-prices-rise-
substantially/articleshow/7408783.cms
8http://www.business-standard.com/india/news/raw-material-shortage-hits-rice-bran-oil-industry/419238/
9http://www.thehindubusinessline.in/bline/2008/09/03/stories/2008090350381100.htm
http://www.dare.co.in/opportunities/agriculture-rural/the-growing-business-of-oilseeds.htm
http://www.mcxindia.com/SitePages/ContractSpecification.aspx?ProductCode=RICE_BRAN_REFINED_OIL
http://irri.org/knowledge/publications/rice-today/maps/mapping-rice-areas-in-south-asia
http://www.surinbranoil.com/process/refining.html
http://www.thaiedibleoil.com/english/product_process_01.php
http://dspace.nitrkl.ac.in:8080/dspace/bitstream/2080/1006/1/gkroy-23.pdf
http://www.indiamarkets.com/imo/industry/foodprocessing/edible.asp?display_content_link=0&search_link=0
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