How to start oil mill business in 2023 | For startups business ideas

Oil is used extensively by people, due to which the demand for different types of oils remains very high. This business is quite successful in our country, so if you want, you can start the business of selling oil and become a businessman. However, before opening an oil mill, you should know well how the mill is opened and from which type of seeds oil is extracted.

Type of oil in Market

Many types of oils are used for cooking in every household in america , where some people cook in mustard oil and some in olive oil. Whereas sesame oil is used and applied on hair. In this way, other types of oils are also used extensively in homes. That means, while starting this business, you will have the option to open many types of oil mills.

What is Oil Mill ?

Oil is extracted by grinding the seeds through an oil mill and then that oil is packed in bottles and sold. However, before starting the mill, you will have to buy many types of machines and decide which oil you want to sell in the market and which oil mill you want to start, such as mustard oil, olive oil, Sesame oil etc.

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business level

  • In any type of mill, oil is extracted every day in metric tons and you can start this business in small scale industry, medium scale industry and large scale industry.
  • The oil extraction mills which extract 5 to 10 metric tons of oil every day come under small scale industry, the mills which extract 10 to 50 metric tons of oil come under medium scale industry and those which Mills that extract more than 50 metric tons of oil come under large scale industry.

Raw Material for oil Mill 

Whichever seed oil you want to extract from mustard, sunflower, cotton etc. seeds, you will have to buy that seed from a seed seller or from a farmer.

If you want, instead of buying these seeds from the market, you can also get the seeds by planting them yourself. However, it may take some time for you to grow seeds yourself.

Machines for oil business biberk

Oil is extracted from the seeds after several processes and different types of machines are used during each process, such as screw expeller, cooker and filter press machines are used at different stages.

At the same time, you can use a fully automatic machine to do your oil extraction business or you can also extract oil through a semi-automatic machine. You can find these machines at  the many online shopping sitesThe prices of these machines are determined according to their quality.

Oil extraction process

The entire process of oil extraction is done in several steps and with the help of a machine, oil is extracted from any type of seeds.

  • Choosing the right seed (seed selection) – The seed from which you want to extract oil should be absolutely correct. Therefore, while purchasing them, ensure that they are neither broken nor dry and choose only those seeds which are of good quality.
  • Pre - cleaning  While extracting the seeds from anything, many types of stones, soil and other things are also found in the seeds Therefore, before extracting oil from them, you will have to remove such things from them. Because if things like stones and soil are ground along with the seeds, it will spoil the quality of the oil and these stones can also get stuck in your machine, due to which the machine can also get damaged. Therefore, once good seeds have been selected, they must be cleaned. You can get these seeds cleaned by hand or you can also clean them with the help of a machine.
  • Decortication  The chaff present in the seeds is cleaned during this process and to do this, blowing air is used After removing the husk from the seeds, they are conditioned.
  • Conditioning of seeds – By conditioning the seeds, more oil is released from it and under this process they are put inside the rollers. Actually, due to passing through the rollers, the seed cells absorb the oil and microscopic oil droplets unite in them, due to which oil can be extracted from the seeds easily and quickly.
  • Heating the seeds – After conditioning, you have to heat the seeds, so that all types of bacteria present in it can be destroyed. However, each seed requires different moisture conditions and temperature. Therefore, you will have to decide the temperature according to the quality of the seed from which you will be extracting oil.
  • Oil extraction – After going through the process mentioned above, oil is extracted from the seeds and in this process they are put into the machine and ground by the machine. The oil that comes out during grinding is collected at one place.
  • Filtration  Some remains of the ground seeds remain inside the extracted oil Therefore, after the oil is removed, it is filtered, so that it can be completely cleaned. Even after cleaning the oil, many types of chemical substances are present in it, which are cleaned through a chemical process.

After completing all the processes mentioned above, your oil is ready to be sold in the market and you can sell it by filling it in bottles. You will have to get these bottles made from a businessman and you will also have to get labeling done on these bottles.

Licenses And Certification 

Before starting an oil mill, you need many types of licenses and certification and only after getting the license and certification, you can sell your oil in the market. Two types of licenses related to food items are given by the Government of usa. Out of which one license is given by Bureau of american Standards and the other license is given by FSSAI. Apart from this, you may also have to obtain many types of licenses from the government of the state in which you are starting this business.

Location ( location for business 

You should open your mill at a place where transportation facilities are good and it does not take much time to transport the raw materials to the factory and transportation does not cost you much. Apart from this, if you are looking for a place to open your factory, then you can see in any local site of your city, at which places factories are being given on rent.

Preparing a Business Plan

Before starting the mill, you will also have to prepare a business plan and in that plan you will have to write about how to open the mill and the risks associated with this business. So that you can know how this business can be run successfully.

Important things related to starting the mill –

  • Once the oil is filtered, it remains good for only 18 months. Therefore, you will have to prepare a well network for selling oil. So that as soon as your oil is ready, you can immediately sell it in the market through wholesalers.
  • The people you hire will have to be trained for a few days on how to extract oil. So that they can run the machines properly and do not face any problem in extracting oil.
  • You will have to buy the machine according to the seed for which you want to extract oil. That means, if you want to extract peanut oil, you will need a peanut sheller machine, whereas to extract cottonseed oil, you will need a disc sheller.
  • You can expand this business further and apart from selling one type of seed oil, you can also sell oil of two or three types of seeds and earn more profits. However, you should expand this business further only when you start making profits.


Before starting an oil mill, you must get the mill insured and if possible, also take training on how oil is extracted, so that you do not face any problem while doing this business.

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