- Mustard oil is extracted from mustard seeds through pressing or grinding and distillation. It is a common cooking oil in India that has health benefits. - The document discusses the various types and uses of mustard oil, as well as the extraction process. It also provides financial details on costs, expenses, output, and profitability of a mustard oil extraction unit. - The financial analysis shows the projected gross return, net return, variable costs, and output-input ratio of over 1, indicating the mustard oil extraction project is financially viable.

2. 1-Introduction
Mustard oil is extracted from the mustard seeds. mustard which is also known as the ‘Sarso Ka
Tel’ or ‘Sarson Ka Tel‘ in Hindi, ‘Aava Nune‘ in Telugu, ‘Kadugu Ennai‘ in Tamil,
‘Kedugenna‘ in Malayalam, ‘Rainu Nu Tel‘ in Gujarati, ‘Rai Da Tel‘ in Punjabi, ‘Mohariche
Tel‘ in Marathi and ‘Sarsay Tel‘ in Bengali.
The term mustard oil is used for two different oils that are made from mustard seeds:
 A fatty vegetable oil resulting from pressing the seeds,
 An essential oil resulting from grinding the seeds, mixing them with water, and extracting
the resulting volatile oil by distillation.
The pungency of mustard oil is due to the presence of allyl isothiocyanate, an activator of
the TRPA1 channel. Oil seed occupy an important place in agriculture and industrial economy in
country. India has perhaps only country in the word having largest no of commercial varieties of
oil seed. Mustard oil cake use cattle feed. Mustard oil is also one of the major oil seed from
which edible oil is produced.it is also used as pickle preparation. In Northern & Central India ,it
is used medium cooking food but North-East region of country consumes mustard oil in large
quantity. various type of edible oil available in the country,ex-Rape Seed,Ground
Nut,Sunflower,Mustard etc. Consumption of edible oil is sustainable in country. all Indian house
hold use every day. Mustard oil contains good percentage of Omeg Alpha - 3 and Omeg Alpha-
6 fatty acids, antioxidants and vitamin E. This oil is generally used as cooking oil, but we know
mustard oil also does wonders to your face, hair and skin. There are 3types of Mustard seed as-

3. a-Importance
Mustard oil is a vegetable oil extracted from mustard seeds as the name says. It’s edible oil and
thus it’s being used in Indian kitchen for cooking since ages. It not only adds delicious flavor in
food but it also helps in beautifying skin and hair in various ways. Mustard oil is very beneficial
and that is why it is used on infants for massaging their whole body and it’s also used on bride
and groom before the D-day for glowing skin. Let’s know in detail the amazing hair and skin
benefits of “Mustard Oil”. Mustard oil is a fatty vegetable oil extracted from the mustard seed.it
is dark yellow in color & slightly pungent. mustard oil is rich in non-saturated and unsaturated
fats, and hence is beneficial for heart. this oil forms a part and parcel of Indian tradition and
culture. It is used for lighting ‘diyas’ in Diwali as well as in rituals performed in North Indian
weddings. Being a rich source of omegAlpha3 and omegAlpha6 fatty acids, vitamin E and
antioxidants, it is considered as one of the healthiest oils. It has been used in Ayurveda since
times immemorial due to its healing and medicinal properties and is considered beneficial for
hair, skin and body.

5. b-Objective
 To assess the price spread & marketing margin of Mustard oil.
 To study financial analysis of Mustard oil.
 To study the value addition over Mustard .
 To analyze the socio-economic condition of the owner of the Mustard oil unit.
 To assess the adoption of technology & extraction of Mustard oil.
 To study the problems of Mustard oil extracters in the study area.
 To analyse the future prospects of the unit in the study area.
 To make strategies for survival of Mustard oil extraction unit of Rahimabad.
2-Method of data collection-
The data is collected by direct interview with the owner of the oil extracter unit.
Name of owner-Suresh Sah
Vill +Post-Rahimabad

6. Via-Tajpur
Dist-Samastipur
State-Bihar(848130)
Technical aspect-
1) Production details & process of manufacture:-
The seeds are to be dried in sun and then they are to be cleaned by shakers to remove dust
and foreign materials. The seeds are initially steamed and then passed through the
expeller and the process is repeated till the maximum oil is extracted out of the seeds.
The filtered oil is filled in to the containers, which are subsequently sealed and labeled
for marketing. On an average around 35% recovery of oil from the seed is made.
11) Quality Control :-
The quality of seeds should conform at least to the quality and standard laid down in
P.F.A. Act. However, for better marketing the standards may be maintained as per
‘AGMARK’ specification. The ISI specification is No. IS-546-1975 (2nd revision). The
entrepreneur may approach the appropriate authorities to get ‘AGMARK’ or ISI
specification for better marketing of the product.
111) production Capacity:-
1. Mustard Oil Extraction of 4500 Kg @ Rs4/Kg: Rs.18000
2. Extraction and sale of Kg. of 1500 Mustard Oil @ Rs 96 / Kg: Rs.144000
3. Mustard Oil Cake (Residue) 3000 Kg @ Rs 23/Kg: Rs 69000
1V) Pollution Control:-
No Special pollution control measures are needed for manufacture of this item as long as
anodizing for surface finishing of the product is done from outside source
V) Energy Conservation:-
General awareness is to be created for economic use of electricity at all points. Proper
maintenance of expeller unit as per the service manual of the manufacturer, timely and
preventive maintenance will lead to efficient energy saving and longer machine life.
Justifiable use of the energy sources and timely checks of contact points will facilitate the
smooth working and energy saving.
V1) Power requirement:- 8kw-32kw

7. a) Instrument & machine:-
Fig-1 mustard oil expeller
b) Processing:-

8. Fig-1

9. Fig-2

10. Financial analysis-
PRODUCTION CAPACITY
(per anm) item quantity value(lakh)
Mustard oil 120 t 96 lakh
Mustard cake 210t 14.7 lakh
Total 110.7 lakh
FINANCIAL ASPECTS-
FIXED CAPITAL-
a-land & buildind-
Built up area-200sqm rented @5000/month
B. Machinery & Equipment-
Sl. No. Description Qty. Rate (Rs.) Amount (lakh)
1 oil expeller with single 1 1,60,30 1.6
steel gear
2 filter press frame type 14
inch*14inch*14inch
plates 1 55,000 0.55
3 oil storage tank 2 10,000 0.2
4 electronic weighing machine 1 27,000 0.2
Total 2.55 lakh
C. Electrification, Installation, Packaging, Taxes, Rs. 0.52 Lakhs Forwarding charges etc.
@ 10%
D. Office furniture & fixtures Rs. 1.00 Lakhs
E. Preliminary & pre-operative expenses Rs. 0.50 lakhs
Investment(lakh) total fixed Rs 4.57 Lakhs

11. Working CAPITAL (per month):
a. Personnel- 0.32 lakh
b. Raw material including packaging materials (per month):
Items Qty. Rate Rs. Per MT Amount Rs. in Lakhs
Mustard seeds 30 MT 25,000/- 7.5
Empty Tins 750 Nos. 35/- 0.26
Empty bags,Chemical
& packing materials - L.S. 0.10
Total: Rs. 7.86 lakh
c. Utilities ( per month):
Power, Electricity & Water charges - Rs. 0.25 lakhs
d. Other contingent expenses ( per month):
Sl. No. Description Amount in Rs.
1. Rent 6,000/
2. Consumable Store, Repair &
Maintenance, Postage, Stationery,
Insurance, Telephone Bill,
Advertisement, Transport etc 8,000/
Total 14,000/-
Recurring Expenses (Per Month):
a. Personnel Rs 0.32 Lakh
b. Raw material Rs.7.86 Lakh
c. Utilities Rs. 0.25 Lakh
d. Other Expenses Rs. 0.14 Lakh
Total Rs. 8.57 lakh
Working Capital (3 months of recurring expenses) = Rs.25.71 lakh

12. COST OF THE PROJECT:-
a. Fixed Investment Rs. 4.57 Lakh
b. Working Capital for 3 months Rs. 25.71 Lakh
Total:- Rs.30.28 Lakhs
IMPRESSION-
GROSS RETURN(per anm)-
Item Qty./MT Rate (Rs.)/MT Amount (Rs.In Lakh)
Mustard oil 120 80000 96 lakh
7000 14.7 lakh
Mustard cake 210
Total 110.7 lakh
NET RETURN-
110.7-4*25.71=7.9 LAKH
VARIABLE COST FOR 1 YEAR=25.71*4=102.84 LAKH
OUTPUT INPUT RATIO-
GR RETURN/VARIABLE COST
=110.7/102.84
=1.07
INFERENCE-As the output input ratio is greater than 1,so the project is financially
viable.
The end.