Overview Of Edible Oil and Vanaspati Industry

The Edible Oil and Vanaspati Industry is one of the country's most profitable edible oil businesses. This unit performs physical and chemical refining of vegetable oil, Vanaspati fractionated vegetable oil, interesterified fats etc. Vanaspati means any refined edible vegetable oils subjected to a process of hydrogenation. Though its popularity has decreased recently, it still has demand as it is a cheaper substitute for clarified butter. While Vanaspati is still famous for its taste, the edible oil market has grown due to its low cholesterol and saturated fat content. Edible oils that are common in the Indian Market are

• Castor oil
• Coconut oil
• Cottonseed oil
• Groundnut oil
• Mahua oil
• Mustard oil
• Sesame oil
• Rice bran oil
• Nigerseed oil
• Safflower oil
• Maise (corn) oil
• Soyabean oil
• Sunflower oil
• Watermelon seed oil
• Sal seed fat
• Palm oil
• Palmolein oil

Waste generation by Edible Oil and Vanaspati Industry

• Vegetable oil processing activities generate significant quantities of organic solid waste, residues and by-products. The list includes empty fruit bunches (EFBs) and waste palm kernels from palm oil processing or olive oil cake and pulp from olive processing.
• Vegetable oil processing facilities use energy to heat water and produce steam for process applications (especially for soap splitting and deodorisation) and cleaning processes. Other standard energy consumption systems include refrigeration and compressed air. Particulate matter (dust) and VOCs are the principal emissions from the edible oil and vanaspati industry.
• Dust results from raw material processing, including cleaning, screening, and crushing. On the other hand, VOC emissions are caused by using oil-extraction solvents, usually hexane.
• Several sources generate solvent emissions within the vegetable oil processing plants, including the solvent recovery unit, the meal dryer and cooler, leaks in piping and vents and product storage.
• Vegetable oil processing involves transporting, storing, and using bulk quantities of acids, alkalis, solvents and hydrogen during extraction and refining.

Their transport, storage, and handling provide opportunities for spills or other types of releases with potentially negative impacts on soil and water resources.

Licences and documents required by Edible Oil and Vanaspati Industry

One of the mandates under the Environmental laws viz. the Water Act, 1974, the Air Act, 1981 and the Environment Act, 1986, is to lay down effluent, emission and ambient standards for the Edible Oil and Vanaspati Industry. The Central Pollution Control Board has been tasked with developing these standards for the industries, including this one. It came up with a document titled- “Comprehensive Industry Document on Edible Oil & Vanaspati Industry”, detailing the various aspects of this sector. The licences needed by any unit will be the same as any other sector falling under a similar industry category. In contrast, the authorisation required by the unit will depend on the type of waste generated and the management protocols put in place for such waste.

The licences and documents required by the edible oil and vanaspati industry are as follows -

Business Registration: Registering the edible oil and vanaspati industry with the appropriate authorities is mandatory under the law. This helps the business owner become eligible for certain benefits from the government end too.

Consent NOC: Every Edible Oil and Vanaspati industry owner seeking to operate or set up an industrial plant must acquire Consent NOCs. The concerned State Pollution Control Board gives this in two steps Consent to Operate (CTO) and Consent to Establish (CTE). Some boards issue a Consolidated Consent Authorisation (CCA). To set up a mill, one must comply with the provision of the Environment Protection Act, Water Act and Air Act. Documents required for this NOC are as follows -

• Duly filled application form of the specific SPCB
• Site or layout plan with a road
• Detailed project report
• Details of the manufacturing process and finished products
• Details of installed waste management measures and pollution control measures
• List of machinery, the capital cost of the unit (land, building, and plant machinery)
• Water balance, source of water and its required quantity 
• Land documents such as rent/lease agreement
• Industry registration documents
• Consent fee(as applicable)

• Balanced sheet certified by a CA
• Lab report of the trade emissions and effluents
• Copy of any permission required from the State Government, such as environmental clearance
• Any additional document mentioned in the application form

FSSAI Licence: An edible oil and vanaspati industry will also need to get the required trade and food business licenses from the FSSAI. Documentations required for FSSAI licence are -

• Photo ID
• List of proposed food articles
• A duly filled Form-B by the applicant
• Partnership deed/Certificate of Incorporation(COI)/Memorandum of Association(MOA)/Articles of Association (AOA)
• Lease or rental agreement to prove land ownership
• Food Safety Management System (FSMS) plan
• Supporting dossiers (if any, such as NOC of panchayat/municipality, health NOC)
• List of raw materials suppliers
• Form IX
• Water test report through a certified NABL
• Import-export code (aka IEC) granted by DGFT
• List of machines and equipment
• List of directors and partners list

Additional Licences and Permits required by the edible oil and vanaspati industry

• Trade license from the local authorities
• SSI or MSME registration with the Udyog Aadhaar Registration (if applicable)
• Trademark registration
• GST registration for tax purposes
• AGMARK (if required)
• IEC (if one wishes to export the finished product)
• BIS certification

Demand and Scope of Edible Oil and Vanaspati Industry

India is among the largest oilseeds producers, and the Edible Oil and Vanaspati Industry occupies an important position in the food processing economy. The industry accounts for the estimated production of36.56 million tons of nine cultivated oilseeds during 2020-21(November-October). This statistic is per 3rd Advance Estimates released by the Ministry of Agriculture on 25.05.2021. Oils such as cottonseed oil, sunflower oil, soyabean oil, rice bran oil, palm oil, and its liquid fraction- palmolein have now entered the Indian kitchen. The share of refined oil, raw oil and Vanaspati in the total edible oil market is calculated roughly at 35%, 60% and 5%, respectively. The consumption of refined palmolein and its blending with other oils has increased substantially in the past. It is used extensively in hotels, restaurants, and in preparing various food products.

How can Enterclimate assist you?

Personalised help for your business establishment Our legal experts, CAs and CS, provide personalised licencing, authorisation services, and legal assistance for your Edible oil and vanaspati industry, all at one place.

Thorough support Enterclimate offer complete supoprt tailored to your business needs. Our team of experts assists not only in the setup of your business but also in proactively keeping you updated with any changes in government policies that must be of your concern.

Cost-effective solution for all business needs Our client relation team provides comprehensive and expert assistance for any doubts and queries of the client speedily and efficiently.