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.Bran
Rice Appearance
grains 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.
1
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 % <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 %
Non- Non-
Edible Total Edible Total Change
edible edible
712,67
Nov.'09 41,289 753,966 519,032 36,310 555,342 + 36%
7
761,83
Dec.’09 25,588 787,423 719,125 26,438 745,563 + 6%
5
827,18
Jan.’10 45,213 872,395 856,690 31,412 888,102 - 2%
2
2,301,6 2,413,78 2,094,8 2,189,0
Total 112,090 94,160 + 10%
94 4 47 07
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.
 Rice Miller
Process Flow Chart before the extraction of Rice
Bran Oil

Paddy

Cleaning- Destoning

Shelling

Separation Husk

Polishing Bran

Rice Stabilization

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%
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
3
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
4
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 - Mustard - Sesame - Safflower - Linseed
- Niger seed - Castor seed - Soybean - Sunflower

Oilseeds production and consumption

Net availability of
Consumption of Edible
Oil year (Nov- Production of edible oils from
Oils (from domestic and
Oct.) Oilseeds all domestic
import sources)
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