Rice Bran Refined Oil_Revised
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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 byproduct 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. AntiRice grains oxidants of Vitamin E group are naturally occurring in rice bran oil.Bran 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 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
Price Volatility Month-to-Month Variation in Ricebran Oil Prices at Mumbai (1994-2003) Variation in %
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 -
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.
to Jan.’10 Month
Nov.'09 Dec.’09 Jan.’10 Total
712,67 7 761,83 5 827,18 2 2,301,6 94
555,342 + 36%
745,563 + 6%
888,102 - 2%
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 nonconventional 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.
Rice Miller Process Flow Chart before the extraction of Rice Bran Oil
Supply to Solvent Plant
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
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 20-25%
Non Edible Rice Bran Oil – oil extraction of 15-20%
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
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. gamma
pigment also been removed from rice bran oil. Refined rice bran oil from
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 Name of the Co.
Ruchi Soya ITC Agro Adani Wilmar Mother Diary Emami Group Food Fat & Fertilizer Marico Maheshwari Solvent
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
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.
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.
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 - Niger seed
- Mustard - Castor seed
Oilseeds production and consumption Net availability of Oil year (Nov- Production Oct.)
of edible all sources
Oils (from domestic and import sources)
Source: Ministry of Agriculture
Mapping Rice Areas in South Asia
References 1http://www.business-standard.com/india/news/raw-material-shortage-hits-rice-bran-oilindustry/419238/ 2 http://www.commodityonline.com/commodities/oil-oilseeds/ricebranrefinedoil.php 3 http://economictimes.indiatimes.com/markets/commodities/companies-develop-a-taste-forrice-bran- oil/articleshow/2388337.cms 4http://economictimes.indiatimes.com/markets/commodities/rice-bran-oil-manufacturers-toset-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-risesubstantially/articleshow/7408783.cms 8http://www.business-standard.com/india/news/raw-material-shortage-hits-rice-bran-oilindustry/419238/ 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