A Report on

Rice Bran Oil

16 February 2011

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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

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-

25%

ii) 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

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

Name of the Co. Base

AP Slovex Punjab

Sethia Oil Kolkatta

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 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.

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

Oil Consumption

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/

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