Mustard oil is widely used for cooking, pickling, and medicinal purposes, making it a staple product across households, restaurants, and food industries. The mustard oil production business is one of the most profitable agro-based industries in India. With increasing demand for pure and cold-pressed oils, starting a mustard oil production business using an oil expeller offers excellent growth potential for entrepreneurs and farmers.
This blog provides a complete guide on how to start a mustard oil production business, covering planning, machinery, investment, process, and marketing.
Overview of Mustard Oil Business
Mustard oil is extracted from mustard seeds through mechanical pressing using an oil expeller. Compared to refined oils, traditionally extracted mustard oil is preferred for its strong aroma, natural nutrients, and health benefits. This consistent demand makes mustard oil production a stable and sustainable business opportunity.
The business can be started on a small, medium, or large scale depending on investment and market reach.
Step 1: Market Research and Business Planning
Before starting, thorough market research is essential. Analyze local demand, competition, pricing, and consumer preferences.
A well-defined business plan should include:
- Target market (local, wholesale, retail, or export)
- Production capacity
- Raw material sourcing
- Machinery requirements
- Investment and operating costs
- Pricing and profit margins
- Marketing strategy
A strong plan helps in obtaining bank loans and managing operations efficiently.
Step 2: Choosing the Right Location
The location of your mustard oil production unit plays a crucial role in cost efficiency and logistics.
Ideal location features:
- Close proximity to mustard-growing areas
- Good transportation facilities
- Reliable electricity and water supply
- Adequate space for machinery, storage, and packaging
Rural or semi-industrial areas are often suitable due to lower land and labor costs.
Step 3: Raw Material Requirement
The primary raw material for this business is mustard seeds. Quality seeds directly affect oil yield and quality.
Key considerations:
- Source seeds from trusted farmers or suppliers
- Ensure seeds are clean, dry, and free from impurities
- Store seeds in a dry, ventilated space to maintain quality
On average, mustard seeds yield around 30–35% oil depending on seed quality and expeller efficiency.
Step 4: Machinery Required for Mustard Oil Production
The heart of the mustard oil production business is the oil expeller. Selecting high-quality mustard oil extraction machines ensures better oil recovery, consistent output, and long machine life.
Essential machines include:
- Mustard seed cleaner
- Oil expeller machine
- Oil filter press
- Storage tanks
- Weighing and packaging machine
Azad Engineering is a well-known and trusted manufacturer of oil expeller machines, offering durable, efficient, and easy-to-operate solutions for mustard oil production businesses. Our machines are suitable for small to large-scale operations and are designed to deliver high oil yield with low maintenance.
Step 5: Mustard Oil Production Process
The mustard oil extraction process using an oil expeller involves several steps:
- Cleaning: Mustard seeds are cleaned to remove dust, stones, and impurities
- Drying: Seeds are dried to achieve the required moisture level
- Crushing: Seeds are fed into the oil expeller
- Pressing: Mechanical pressure extracts oil from seeds
- Filtration: Oil is filtered to remove impurities
- Storage: Filtered oil is stored in tanks before packaging
- Packaging: Oil is packed in bottles, pouches, or tins
This process ensures pure, natural mustard oil suitable for consumption.
Step 6: Legal Requirements and Registration
To operate legally in India, the following registrations are required:
- FSSAI license
- Trade license from local authority
- GST registration (if applicable)
- MSME/Udyam registration
- Pollution control clearance (for larger units)
Proper compliance builds customer trust and enables smooth business operations.
Step 7: Investment and Cost Estimation
The investment required depends on production capacity and automation level.
Major cost components:
- Oil expeller and machinery
- Building or shed setup
- Raw material procurement
- Labor and utilities
- Packaging materials
A small-scale mustard oil production unit can be started with moderate investment, while medium and large units require higher capital but offer better economies of scale.
Step 8: Profit Margin in Mustard Oil Business
Mustard oil production offers attractive profit margins due to steady demand and relatively low operating costs.
Profit depends on:
- Seed procurement cost
- Oil yield percentage
- Production efficiency
- Market price
- Brand positioning
Selling pure, unadulterated mustard oil directly to consumers or retailers can significantly improve profitability.
Step 9: Marketing and Sales Strategy
Effective marketing is crucial for success.
Common sales channels include:
- Local retailers and wholesalers
- Kirana stores
- Hotels and restaurants
- Direct consumer sales
- Online marketplaces
Strong branding, quality packaging, and consistent supply help build customer loyalty in a competitive market.
Step 10: Role of Reliable Machinery Partner
Choosing the right machinery to ensure smooth operations and long-term success. Azad Engineering provides high-performance oil expeller machines that help mustard oil producers achieve better efficiency, higher oil recovery, and reliable production output. Our technical support and customization options make us a preferred choice in the edible oil industry.
Mustard Oil Business Plan
The mustard oil business involves extracting edible oil from mustard seeds using an oil expeller and selling it to households, retailers, and food businesses. Due to high demand and regular consumption, it is a stable and profitable agro-based business in India.
The business requires quality mustard seeds, oil expeller machinery, basic infrastructure, and proper licenses such as FSSAI and GST (if applicable). The manufacturing process includes seed cleaning, crushing, oil extraction, filtration, and packaging.
Conclusion
Starting a mustard oil production business using an oil expeller is a profitable and sustainable venture in India. With proper planning, quality raw materials, efficient machinery, and effective marketing, entrepreneurs can build a successful oil manufacturing business.
By investing in reliable oil expeller machines from Azad Engineering, mustard oil business can ensure consistent quality, operational efficiency, and long-term growth in the competitive mustard oil market.