Industry Overview
Mustard oil is one of the most consumed
edible oils in the world, particularly in India, due to its distinctive flavor and health benefits. It is extracted from mustard seeds through
cold pressing or
solvent extraction. The increasing demand for
cold-pressed mustard oil has made this sector highly profitable.
Scale and Profitability of Industry
The mustard oil market is expansive, with both
traditional and
organic products in demand. The profit margins are high, particularly with cold-pressed mustard oil, which attracts a premium price. Given the scale of the market, the business can be expanded significantly with the right distribution channels and a strong brand.
Subsidy Opportunities
PMEGP and
MSME subsidies can help small-scale manufacturers with equipment procurement,
storage, and
marketing costs. Additional subsidies may be available for
organic certification and
food safety testing.
Eligibility Criteria
- MSME registration
- FSSAI certification for edible oils
- Proper plant setup for oil extraction and refining
Project Cost and Subsidy
- Project Cost: ₹30 Lakhs to ₹60 Lakhs
Subsidy: Up to
40-50% under
PMEGP,
MSME subsidies
To apply for the Food Processing Scheme, the following mandatory documents are required for new enterprises (Individuals/Firms) as outlined in the manual
1. PAN Card of concerned/all promoters.
2.Aadhaar Copy & Photo of all promoters/guarantors.
3. Address Proof: Any of the Officially Valid Documents (OVD) such as:
o Utility bill (not more than two months old) from any service provider (Electricity, telephone, post-paid mobile phone, piped gas, water bill).
o Property or Municipal tax paid receipt.
o Ration Card (Individual).
o Driving Licence
o Aadhaar Card.
o Voter ID Card.
4. Details of the site where the unit is to be established, including whether it is owned/rented/leased, along with proof (Lease/rent agreement should be for more than the loan repayment period).
5. Photocopy of Bank
6. Estimates and Quotation of all capital expenditure and machinery and equipment to be purchased. Statement/Bank Passbook for the last 6 months.
For existing enterprises with a turnover of less than 1 crore, similar documents are required, including PAN Card, Aadhaar, address proof, and site details.
If you need more specific information or additional documents, please let me know!
