Project Profile of Rice Bran Oil Extraction Plant in Bangladesh

The most important fact is that Bangladesh, being a major rice producer, generates a large volume of rice bran each year which is currently under-utilised. According to one study, rice bran is produced as a by-product of milling, and can constitute about 10–12 kg per 100 kg of paddy processed.

Project Profile of Rice Bran Oil Extraction Plant in Bangladesh

Therefore, setting up a dedicated extraction plant for turning rice bran into edible oil addresses two needs: value addition to agro-waste, and reducing dependence on imported edible oils. Besides that, the oil extracted from rice bran is known for its high quality and health benefits. (Dhaka Courier)
In this project profile we lay out market overview, raw material supply, process technology, financial estimates (in BDT), risk factors and returns.

Market & Opportunity

Edible oil import dependence

Bangladesh imports about 90% of its edible oil requirement — this huge import dependency drains foreign currency. (rayhans.com.bd)
Rice bran oil (RBO) offers a domestic alternative. One article points out that Bangladesh produces around 4.87 million tons of rice bran annually and could meet 25-30% of edible oil demand if properly processed. (rayhans.com.bd)

Current status of RBO industry in Bangladesh

There are about 17 rice-bran-oil related processors in the country, producing roughly 200,000 to 240,000 tonnes of crude RBO annually before export bans hit. (The Daily Star)
Yet, despite capacity, much of the bran remains unused or used as low-value feed. (The Daily Star)
Hence, there is a significant opportunity for new players with efficient logistics and marketing to capture a portion of this value chain.

Health & consumer trends

RBO has a higher smoke point (≈232 °C) and favourable fatty acid profile (about 75-80% unsaturated fat) which makes it suitable for high-temperature cooking and healthier choice. (Wikipedia)
Thus, with proper branding and positioning, the oil has potential for premium market segments.

Raw Material Supply & Availability

Quantity & quality of rice bran

From milling: one 100 kg of paddy yields approximately 56–58 kg white rice, 18–20 kg husk, and 10–12 kg rice bran in Bangladesh.
Using a rough estimate: if Bangladesh mills large volumes of paddy, the available rice bran could be significant.

Oil content & stabilisation issues

Rice bran contains extractible oil content of around 13–18% in commercial mills.
But the enzyme lipase degrades the oil quickly if not stabilised soon after milling. Therefore, logistic and pre-treatment systems (stabilisation) are critical. (rayhans.com.bd)

Supply chain considerations

You must work closely with clusters of rice-mills or stabilise bran promptly after milling. Because dense supply of bran and “freshness” (low free-fatty-acid content) matters for efficient extraction. (rayhans.com.bd)
Location of the plant near major rice-milling hubs will reduce transport cost and improve feed-quality.

Technology & Production Process

Process overview

The process is broadly divided into: pretreatment → extraction → refining. (cnhuataigroup.com)
Steps include cleaning, stabilising the bran, expanding/puffing, solvent extraction of oil (or mechanical pressing in small scale), desolventising meal, refining oil (degumming, dewaxing, de-acidification, decolourisation, deodorisation) and handling by-products. (Huatai Oil Machinery)

Equipment & plant capacity examples

For example, a 30 TPD (tons per day) rice bran oil production line (in Bangladesh) included 30 TPD pretreatment, 30 TPD solvent extraction, 6 TPD refining line. (QIE grain and oil machinery co., LTD)
Another supplier suggests a 50-1000 TPD line, and notes that for 20 tons bran you can get about 3.4 tons crude oil. (China Bangla Engineers & Consultants Ltd)

Plant layout & estimates

Here is a simplified production table based on a mid-sized plant (example 100 TPD bran processing):

Parameter Value Notes
Raw material (bran) input per annum 100 TPD × 330 days = 33,000 tons Assuming 330 working days
Oil extraction yield ~14% of bran (conservative) → ~4,620 tons crude oil Based on 13-18% extractible
Refining yield (crude → refined) ~90% → ~4,158 tons refined oil Accounting for 10% loss
By-product de-oiled rice bran (DORB) ~28,380 tons Used in animal/fish feed
Annual revenue potential (refined oil) If price BDT 200,000/ton (example) → ~BDT 831,600,000 Price must be validated locally
Annual revenue potential (DORB) If BDT 50,000/ton → ~BDT 1,419,000,000 By-product value added

Note: These numbers are illustrative. Actual figures depend on local prices, efficiency, logistics, and market conditions.

Cost Estimates (in BDT)

Capital expenditure (CAPEX)

A plant of 100 TPD capacity including land, civil work, machinery, utilities, installation, commissioning might cost (very approximate) BDT 500–700 million. Reference international cost (USD 1 M+ for small scale) (China Bangla Engineers & Consultants Ltd)
Assume:

  • Land & site development: BDT 80 million

  • Machinery & equipment: BDT 350 million

  • Civil works & utilities: BDT 100 million

  • Contingency & pre-operating costs: BDT 50 million
    Total CAPEX: ~ BDT 580 million

Operating expenditure (OPEX) – annual estimate

Cost item Estimate (BDT) Notes
Raw material – bran (33,000 tons) at BDT 15,000/ton BDT 495 million Assumed price; adjust locally
Utilities (steam, power, solvents) BDT 30 million Based on scale
Labour & staffing BDT 20 million Including supervisors, operators
Maintenance, spares & consumables BDT 15 million Approx 2.5% of machinery cost
Other overheads (admin, marketing, waste handling) BDT 10 million Miscellaneous
Total annual OPEX: ~ BDT 570 million

Revenue estimate

From previous table: refined oil revenue ~ BDT 831.6 million + DORB revenue ~ BDT 1,419 million = ~ BDT 2,250.6 million (2.25 billion BDT)
Less OPEX ~ 570 million = Gross profit ~ BDT 1,680 million before depreciation, interest and tax.

Payback & profitability

With CAPEX ~ 580 million BDT and annual gross profit ~ 1,680 million, simple payback time could be under one year—this is an ideal scenario. In real world, returns will be somewhat lower due to sales risk, market uptake, finance cost, seasonal variation. A more conservative estimate might target payback in 2-3 years.

By-Products & Value Addition

By-products offer additional revenue streams:

  • De-oiled rice bran (DORB): high in protein & fibre — can be sold for animal feed, fish feed, poultry feed.

  • Bran waxes, fatty acid fractions, glycerine: further downstream processing possible.

  • Residual meal: biomass or fuel.

Using these adds resilience to project economics and reduces waste.

Site Selection & Plant Location

Important criteria:

  • Close to major rice-mills clusters to ensure steady bran supply.

  • Good transport infrastructure (road, rail) for raw material and finished goods.

  • Access to utilities (power, steam, water).

  • Environmental clearance and waste management provisions for solvent extraction.
    Location in rice-milling zones such as Kushtia, Pabna, Naogaon, Mymensingh presents advantage. (Dhaka Courier)

Environmental, Health & Safety Considerations

Solvent extraction uses organic solvent (e.g., hexane) which is flammable and has safety concerns. Process requires closed-loop solvent recovery. (cnhuataigroup.com)
Waste-water, effluent and solvent recovery needs strict control to avoid environmental damage.
Proper safety training, fire-prevention systems, ventilation and dust control must be included in design.

Risk & Mitigation

Major risks:

  • Raw material supply disruptions or bran quality issues (high FFA).

  • Low domestic demand for RBO: as noted, Bangladesh has low domestic uptake and many plants depend on exports. (The Daily Star)

  • Export restrictions or policy changes.

  • Price competition from palm oil and soybean oil imports.

  • Technology and operational risk (solvent extraction, refining losses).

Mitigation strategies:

  • Secure long-term supply agreements with rice-mills; include stabilisation units.

  • Develop domestic market simultaneously (branding, marketing).

  • Diversify by-product utilisation (feed, waxes).

  • Choose proven technology from equipment suppliers with service support.

  • Monitor regulatory policies and ensure export compliance.

Project Implementation Timeline

Milestone Duration
Feasibility study & land acquisition 2-3 months
Detailed engineering & procurement 3-4 months
Civil works & utilities installation 4-5 months
Machinery erection & commissioning 2-3 months
Trial production & ramp-up 1‐2 months
Total: ~12-17 months from project approval to full production.

Financial Summary Table

Parameter Value (BDT)
CAPEX (one-time) ~ 580 million
Annual revenue (Refined oil + DORB) ~ 2,250.6 million
Annual OPEX ~ 570 million
Annual gross profit (before tax/depr) ~ 1,680 million
Simple payback period < 1 year (ideal) / 2-3 years (conservative)

SWOT Analysis

Strengths:

  • Strong raw material base (rice bran) in Bangladesh.

  • Health-oriented product potential.

  • Value addition and import substitution benefits.

Weaknesses:

  • High capital cost.

  • Complex operations (extraction + refining).

  • Low current domestic demand.

Opportunities:

  • Export market for RBO and DORB.

  • Branding as premium healthy oil.

  • Feed-industry growth for DORB by-product.

Threats:

  • Policy & export restrictions.

  • Competition from established edible oil imports.

  • Raw material quality degradation (lipase activity).

Conclusion

A rice bran oil extraction plant in Bangladesh presents a compelling business proposition. The confluence of abundant raw material, import dependency in edible oils, and health-driven consumption trends provides a favourable backdrop. With careful supply chain design, technology choice and market development, the project can deliver strong returns. Still, the sophistication of operations and policy risk require robust planning and execution.

Call to Action

If you are ready to seize this opportunity – develop a bankable project profile, secure financing and implement the plant in Bangladesh or abroad – we can help.
Contact us: Mobile: 01716752370
Website: rayhans.com.bd
We specialise in preparing professional project profiles for agro-industry in Bangladesh and overseas. Let us partner with you and turn your idea into a high-impact business.

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