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May 02, 2026
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India's mustard oil market hit $1.3 billion in 2025. Learn how to start a sarson tel business in Bihar — expeller machine types, investment, profit per litre & step-by-step setup.
Introduction In Bihar, sarson ka tel is not a cooking preference. It is a cultural constant. Litti chokha without mustard oil does not exist. Macher jhol, aloo sabzi, the tadka on dal — all of it depends on that sharp, pungent aroma that no other oil replicates. Mustard oil is not a category Bihar will ever switch away from. India's mustard oil market was valued at $1.3 billion in 2025 and is projected to reach $1.8 billion by 2034, growing at a CAGR of 4.03%. Cold-pressed mustard oil held the highest product type market share at 56.7% in 2025, driven by a sharp consumer shift toward natural, chemical-free cooking oils. In June 2025, Marico launched the Saffola Dual Seed Cold Pressed Oils range including a premium mustard variant — the biggest FMCG signal yet that Kachi Ghani is where the market is heading. Bmvfragrances + 2 For a Bihar entrepreneur, this is significant. Most of the mustard oil sold in Bihar's kirana stores and wholesale markets is brought in from Rajasthan, Haryana, and UP-based mills. There is no strong local Bihar brand. A locally produced, freshly cold-pressed kachi ghani mustard oil has a freshness advantage, a freight cost advantage, and direct access to the state's highest-consuming households. This guide covers everything you need to start — expeller machine types, real investment costs, profit per litre, raw material sourcing, step-by-step setup, and how Startuphyper supports you through the entire process.
Bihar's position in this market is clear: Bihar and Jharkhand are named as primary mustard oil-consuming states — litti chokha is specifically cited as incomplete without mustard oil. Households in Punjab, Himachal, J&K, Rajasthan, Assam, Bihar, Jharkhand and Uttar Pradesh consume substantial quantities of mustard oil. Bihar is in the highest-consumption belt in the country — and has no dominant local producer.
Government Push: The National Mission on Edible Oils — Oilseeds (NMEO-OS) was approved in 2024 for a seven-year period (2024–25 to 2030–31) to achieve self-sufficiency in edible oil production. This mission directly supports small-scale oil mill entrepreneurs through subsidies, seed linkage, and infrastructure support.
2. Kachi Ghani vs. Expeller vs. Refined — Which Oil Will You Make? Before buying any machine, you must decide which type of mustard oil your business will produce. Each has different extraction methods, oil yields, consumer positioning, and price points.
| Type | Extraction Method | Oil Yield per kg Seed | Consumer Price | Margin Potential |
|---|---|---|---|---|
| Kachi Ghani (Cold Press) | Low temperature pressing | 22% (220g/kg seed) | ₹160–₹220/litre | Highest — premium segment |
| Hot Press Expeller | High pressure, heat involved | 30–35% (300–350g/kg seed) | ₹130–₹160/litre | Medium — mass market |
| Solvent Extracted (Refined) | Chemical solvent extraction | 38–42% total (combined) | ₹110–₹140/litre | Lower margin, high volume |
Startuphyper recommends for Bihar entrepreneurs: Start with Kachi Ghani (cold press) production. Here is why:
Consumer demand for cold-pressed, chemical-free oil is growing fastest — the cold pressed oil market is growing at 5.41% CAGR, with North India leading at 31% market share due to strong cultural affinity for mustard oil.
3. Mustard Oil Expeller Machine — Types, Prices & What to Choose
| Machine Type | Capacity | Power | Price Range | Best For |
|---|---|---|---|---|
| Mini Home Cold Press | 2–5 kg/hr | 1.5–2 HP | ₹18,000–₹35,000 | Home use / trial |
| Small Commercial Expeller (6-bolt) | 30–40 kg/hr | 5–7 HP | ₹98,000–₹1,55,000 | Small kachi ghani unit |
| Medium Expeller (9-bolt) | 40–60 kg/hr | 7–10 HP | ₹1,40,000–₹1,65,000 | Medium commercial unit |
| Semi-Auto Expeller (10 HP) | 80–100 kg/hr | 10 HP | ₹1,10,000–₹2,45,000 | Established oil mill |
| Fully Automatic Expeller | 150–200 kg/hr | 10–15 HP | ₹3,45,000–₹5,20,000 | Large commercial unit |
| Mini Oil Mill Plant (complete) | 30 kg/hr | 5–7 HP | ₹2,00,000–₹3,50,000 | Full plant, small scale |
How a Mustard Oil Expeller Works A mustard oil expeller is a screw-press machine. Mustard seeds are fed into the hopper. A rotating screw shaft inside a hardened barrel applies progressive mechanical pressure to the seeds, breaking cell walls and forcing out the oil. The oil flows out through slots in the barrel. The remaining compressed seed mass — called the oil cake (khali) — exits at the end. The difference between cold press (Kachi Ghani) and hot press expeller is temperature. Cold press operates below 50°C — oil retains natural colour, aroma, and nutrients. Hot press expeller heats the seed before pressing, yielding more oil but with reduced nutritional quality.
Which Machine for a Bihar First-Time Entrepreneur? Budget ₹2–4 lakh: 6-bolt or 9-bolt commercial expeller (₹98,000–₹1,65,000) + filter press + storage tanks. Produces 30–60 kg of seeds per hour. Running 8 hours per day with 35% oil yield = 84–168 litres of mustard oil per day. This is the right entry point for a dedicated small-scale kachi ghani oil mill in Bihar. Budget ₹4–7 lakh: Mini oil mill plant (complete setup, 30–40 kg/hr) at ₹2–3.5 lakh + supporting equipment. More turnkey, less sourcing effort
4. Supporting Equipment Required
| Equipment | Purpose | Price Range |
|---|---|---|
| Seed Cleaner / Winnower | Removes dust, stones, foreign matter from mustard seeds | ₹15,000–₹40,000 |
| Pre-Heater / Cooker (hot press) | Pre-heats seeds to improve oil yield (hot press only) | ₹20,000–₹50,000 |
| Filter Press | Removes particles from crude oil for clarity | ₹25,000–₹70,000 |
| Oil Storage Tanks (HDPE/SS) | Stores crude and filtered oil before bottling | ₹10,000–₹35,000 |
| Oil Filling Machine | Fills oil into bottles or pouches accurately | ₹20,000–₹60,000 |
| Pouch / Bottle Sealing Machine | Seals filled packaging | ₹10,000–₹30,000 |
| Weighing Scale (digital) | Measures seed input and oil output accurately | ₹3,000–₹8,000 |
Complete Supporting Equipment Budget: ₹1–2.5 lakh for a fully functional small-scale mustard oil unit. The filter press is the most critical non-negotiable — unfiltered mustard oil cannot be sold commercially. Never skip it.
5. Complete Investment Breakdown: 3 Scenarios Scenario A — Small Kachi Ghani Unit (₹2–3.5 Lakh)
| Item | Cost (Approx.) |
|---|---|
| 6-Bolt Commercial Expeller | ₹98,000–₹1,55,000 |
| Filter Press (small) | ₹25,000–₹40,000 |
| Oil Storage Tanks (2 × 200L HDPE) | ₹12,000–₹18,000 |
| Basic Bottle Filling + Sealing | ₹18,000–₹30,000 |
| Mustard Seed (1 month — 2 MT) | ₹60,000–₹80,000 |
| Packaging (bottles + labels) | ₹10,000 |
| Licenses + Registration | ₹10,000–₹15,000 |
| Working Capital Buffer | ₹20,000 |
| TOTAL | ₹2.53–₹3.68 Lakh |
TOTAL ₹4.85 – ₹7.75 Lakh
TOTAL ₹13.20 – ₹20.50 Lakh
Government Support: Mustard oil processing is directly eligible under MMUY Bihar (50% subsidy, 0% interest up to ₹10 lakh), PMEGP (15–35% subsidy up to ₹25 lakh), and PM FME (35% subsidy for food processing micro-enterprises). The NMEO-OS mission has a financial outlay targeting oilseed production enhancement from 39 to 69.7 million tonnes by 2030–31 — creating direct upstream support for oil mill entrepreneurs.
Black Mustard Seeds (Rai) Primary — highest oil content ₹55 – ₹75/kg Grain markets: Patna, Gaya, Darbhanga Yellow Mustard Seeds (Sarson) Popular in North Bihar ₹50 – ₹70/kg Local wholesale mandis Mustard Seeds (Rajasthani variety) Highest yield — 38–42% oil content ₹60 – ₹80/kg Bulk from Rajasthan via traders Bottles (1L PET/HDPE) Retail packaging ₹8 – ₹14/piece Packaging suppliers, Patna Pouches (500ml, 1L, 5L) Alternative retail packaging ₹2 – ₹8/piece Flexible packaging suppliers Labels (printed) Branded label for bottle ₹0.80 – ₹2/label Local printers
Oil Yield Data — What You Get Per kg of Seed
Kachi Ghani (Cold Press) 220 g (22%) 760 g Hot Press Expeller 300 – 350 g (30–35%) 640 – 680 g Combined (Cold + Expeller) 370 – 400 g (37–40%) 580 – 610 g
Cost Economics Per Litre of Kachi Ghani Mustard Oil To produce 1 litre (approx. 920g) of kachi ghani mustard oil:
By-product revenue: The oilcake (khali) from 4.55 kg of seeds = approximately 3.5 kg of oil cake. Selling price of mustard oil cake: ₹20–₹25 per kg = ₹70–₹87.50 additional revenue per litre of oil produced. This by-product alone covers 20–25% of your seed cost.
Oilcake is not waste. It is animal feed and organic fertilizer with a guaranteed buyer market. Every cattle farmer, dairy, and poultry unit near your mill is a potential buyer. Never throw oilcake — it directly subsidizes your production cost.
7. The Oil Extraction Process — Step by Step Stage 1 — Seed Procurement and Cleaning Source mustard seeds from wholesale grain markets. Check for moisture content (max 8% for optimal pressing) and impurity level. Pass seeds through the seed cleaner to remove dust, stones, and foreign matter. Clean seeds improve oil yield by 2–5% and prevent machine wear. Stage 2 — Optional Pre-Heating (Hot Press Only) For hot press expeller, seeds pass through a pre-heater or cooker at 60–80°C for 15–20 minutes. This breaks seed cell walls and increases oil fluidity, improving yield to 30–35%. For kachi ghani (cold press), skip this step — seeds are pressed at ambient temperature. Stage 3 — Pressing in the Expeller Feed cleaned (and pre-heated if hot press) seeds into the expeller hopper. The rotating screw shaft applies progressive pressure. Crude oil flows out through barrel slots and is collected in the receiving tray. Oil cake exits from the barrel end. Stage 4 — Filtration Crude mustard oil contains seed particles, moisture, and gums. Pass it through the filter press (plate-and-frame type) to remove all impurities. Repeat filtration if needed for clear, bright oil. Filtered oil is transferred to SS or HDPE storage tanks. Stage 5 — Settling and Quality Check Allow filtered oil to settle for 12–24 hours. Any remaining fine particles sink to the bottom. Decant the clear oil from the top. Check colour (amber/reddish-brown for kachi ghani), aroma (sharp, pungent), and absence of sediment before filling. Stage 6 — Filling, Sealing, and Labelling Fill settled oil into branded bottles or pouches using the oil filling machine. Seal with the sealing machine. Apply labels with all mandatory FSSAI and Legal Metrology information. Pack in cartons for dispatch.
8. Step-by-Step: How to Start a Mustard Oil Business in Bihar Step 1 — Get FSSAI License First Mustard oil is a food product. You cannot legally manufacture or sell it without FSSAI registration or license. For a small unit (turnover under ₹12 lakh/year), basic FSSAI registration costs ₹100. For larger units, a State FSSAI License is required. Additionally, for branded mustard oil sold in retail, AGMARK certification is strongly recommended — it signals quality assurance to retailers and institutional buyers. Step 2 — Udyam Registration + GST Register as a sole proprietorship or partnership. Get Udyam (MSME) registration — free, online — for government scheme eligibility. GST for mustard oil (HSN 1514) is 5% — one of the lower slabs for edible oils. Register once turnover crosses ₹20 lakh or before any inter-state sale. Step 3 — Procure Machine and Set Up Contact Startuphyper for machine sourcing from verified manufacturers in Jaipur, Ludhiana, Nagpur, and Ahmedabad. We arrange transportation to Bihar, installation, and operator training. Minimum workspace requirement: 400–600 sq ft with concrete flooring, drainage for oil spillage, adequate ventilation, and fire safety provisions (edible oil is flammable). Step 4 — Source Seeds and Run Trial Batches Buy your first 500 kg–1 MT of mustard seeds from Patna's Mithapur Mandi or through grain traders in Gaya and Darbhanga. Run 5 trial batches before commercial production. Measure oil yield per batch. Test filtered oil for colour, aroma, and clarity. Fix any seed quality or machine calibration issues before approaching customers. Step 5 — Brand, Package, and Launch Your label must include: brand name, product name ("Kachi Ghani Mustard Oil" or "Cold Pressed Sarson Tel"), net volume, MRP, FSSAI registration number, AGMARK number (if applicable), manufacturer name and address, batch number, date of manufacture, and best-before date. Launch with free 500ml sample bottles to your first 10–15 target accounts. Step 6 — Build Distribution Priority channels for Bihar:
9. Profit Calculation — Real Monthly Numbers Monthly profit model for a small 6-bolt expeller kachi ghani unit in Bihar
Machine 1 × 6-bolt commercial expeller (cold press) Seed processing capacity 30 kg/hr Operating hours per day 8 hours Daily seed input 240 kg Oil yield (cold press, 22%) ~52.8 litres/day Oilcake yield (76%) ~182 kg/day Working days per month 26 days Monthly oil output ~1,373 litres Monthly oilcake output ~4,732 kg Seed cost (₹65/kg × 240 × 26) ₹4,05,600 Electricity + maintenance ₹15,000 Labour (2 workers) ₹18,000 Packaging (bottles + labels) ₹21,968 (₹16/litre) Total monthly expenses ₹4,60,568 Oil revenue (₹400 × 1,373 L) ₹5,49,200 Oilcake revenue (₹22 × 4,732 kg) ₹1,04,104 Total monthly revenue ₹6,53,304 Net monthly profit ~₹1,92,736
Bulk wholesale (loose, unbranded) ₹320 – ₹350 / litre ₹20 – ₹30 / litre Branded wholesale (1L bottles) ₹380 – ₹420 / litre ₹55 – ₹90 / litre Retail MRP (branded 1L) ₹160 – ₹220 / litre (500ml = ₹80–₹110) ₹80 – ₹120 / litre Online premium Kachi Ghani ₹250 – ₹350 / litre (D2C) ₹120 – ₹180 / litre
ROI Timeline: For a ₹3–5 lakh investment (Scenario A–B), with net monthly profit of ₹1.5–₹2.5 lakh, break-even falls at 2–3 months. By-product oilcake revenue meaningfully accelerates this timeline.
Wholesale distributors 15L tins or bulk 500 – 5,000 litres Meeting + sample + price list Kirana / General stores 1L, 5L branded bottles 20 – 100 litres/store Direct visit with sample Dhabas and restaurants 15L bulk tins 50 – 200 litres/month Morning visit with sample Hotels and guest houses 15L bulk or 5L bottles 100 – 500 litres/month Procurement manager School mid-day meal program Bulk supply Very high Government procurement Cattle / Dairy farms Oilcake (khali) 500 – 5,000 kg/month Direct approach; assured buyer Organic food platforms Branded Kachi Ghani Growing; urban market IndiaMART + Instagram D2C Export aggregators Bulk Kachi Ghani High; consistent Through Startup network
Bihar's strongest opportunity: The oilcake market. Every litre of mustard oil you produce generates 3.5 kg of oilcake. Bihar has one of India's largest cattle and dairy populations. Oilcake is a premium cattle feed. Lock in 2–3 dairy farms or cattle feed dealers as your oilcake buyers before you start production — this by-product income is guaranteed revenue that requires zero marketing effort.
FSSAI Registration / License FSSAI Mandatory for all edible oil manufacturers ₹100 – ₹7,500 Udyam (MSME) Registration Ministry of MSME Required for government scheme eligibility Free GST Registration GST Council Mandatory above ₹20L turnover / inter-state Free AGMARK Certification Directorate of Marketing & Inspection Quality mark — required for branded retail ₹5,000 – ₹20,000 Trade License Local Municipality Permission to operate commercially ₹500 – ₹3,000 Factory License Bihar Labour Dept. Required if 10+ workers with powered machines ₹2,000 – ₹8,000 Pollution Control NOC Bihar SPCB Oil processing = Orange category ₹2,000 – ₹8,000 Fire Safety Certificate Bihar Fire Dept. Mandatory — edible oil is flammable ₹500 – ₹2,000
GST Rate on Mustard Oil: Mustard oil (HSN 1514) attracts 5% GST — one of the lowest rates for manufactured food products. This keeps your product price competitive and tax compliance simple.
**AGMARK Note:**AGMARK certification (IS 544 for mustard oil) is not legally mandatory but is practically essential. Most wholesale distributors, supermarkets, and institutional buyers in Bihar refuse to stock mustard oil without the AGMARK mark. Budget ₹5,000–₹20,000 for certification and factor the testing timeline into your launch schedule.
12. Common Mistakes New Mustard Oil Manufacturers Make Mistake 1 — Buying seeds based on price alone without checking oil content Mustard seeds vary significantly in oil content — from 36% in low-grade seeds to 46% in premium Rajasthani varieties. Buying cheap seeds with 36% oil content gives you 10–15% less oil per kg compared to premium seeds at ₹8–10/kg more. The math almost always favours better seed quality. Always ask for the oil content certificate from your seed supplier, or run a small test batch before committing to bulk purchase. Mistake 2 — Skipping the filter press to save ₹25,000–₹40,000 Unfiltered crude mustard oil is cloudy, contains suspended seed particles, and has a shorter shelf life. No serious distributor, kirana store, or institutional buyer will accept unfiltered oil. Trying to sell it cheaply as "raw oil" to cattle farms is an option but destroys your margin. The filter press pays back its cost in the first week of operation. It is not optional equipment. Mistake 3 — Not registering for AGMARK before approaching organized retail Many Bihar oil mill startups spend months producing good quality kachi ghani oil, then discover they cannot get it into a single supermarket shelf without AGMARK certification. Apply for AGMARK simultaneously with your FSSAI — the process takes 4–8 weeks. Not having it delays your retail market entry by months. Mistake 4 — Ignoring oilcake as a revenue stream Every 1,000 litres of kachi ghani mustard oil produces approximately 3,500 kg of oilcake. At ₹20–25/kg, that is ₹70,000–₹87,500 in additional monthly revenue that many new manufacturers either ignore or dump at distress prices. This by-product income covers your monthly electricity and labour costs entirely. Build your oilcake buyer network before you start production.
Machine Sourcing Verified mustard oil expellers from Jaipur, Ludhiana, Nagpur, Ahmedabad — delivered to Bihar with warranty
Installation & Training On-site expeller setup + operator training + first batch calibration at your location
Project Report (DPR) Complete DPR for MMUY / PMEGP / PM FME / bank loan applications
FSSAI + AGMARK Support End-to-end registration and certification support — application to certificate
License Support Udyam, GST, Trade License, Factory License, Pollution NOC — we handle all documentation
Government Scheme Guidance MMUY, PMEGP, PM FME, NMEO-OS linkage — eligibility check + full application
Seed Sourcing Linkage Connect to bulk mustard seed suppliers in Rajasthan and local Bihar mandis
Oilcake Market Linkage Introduction to cattle feed dealers, dairy farms, and poultry units as oilcake buyers
Branding + Packaging Bottle label design, FSSAI + AGMARK compliance printing, brand name suggestions
Distribution Linkage Introduction to wholesale distributors in Patna, Gaya, Muzaffarpur, Bhagalpur
We have supported 500+ startups across 60+ business categories in Bihar and Eastern India.
📞 Call / WhatsApp: 9472093913 📧 Email: info@startuphyper.com 🌐 Website: www.startuphyper.com | www.machinehai.com 🏢 Branches: Patna | Gaya | Katihar | Saharsa
15. Conclusion Mustard oil is not a trend in Bihar. It is a daily essential with deep cultural roots, a growing premium segment (Kachi Ghani), a strong government policy tailwind (NMEO-OS), and no dominant local manufacturer serving the state's own demand. India's mustard oil market is projected to grow from $1.3 billion to $1.8 billion by 2034, with the cold-pressed segment growing fastest. Bihar consumes substantial mustard oil daily and imports nearly all of it from other states. That gap is the business. Bmvfragrances Here is what to remember:
Start with Kachi Ghani (cold press) — premium pricing, growing consumer demand, simpler compliance than refined oil Never skip the filter press — it is the difference between a product that sells and one that doesn't Build your oilcake buyer network before Day 1 — by-product revenue covers 20–25% of your monthly production cost Apply for AGMARK alongside FSSAI — without it, your first 4–8 months of distribution will be limited to informal channels only
Startuphyper will take you from machine selection to your first distributor order — expeller sourcing, filter press, FSSAI and AGMARK registration, government scheme application, seed sourcing, and oilcake market linkage all included. Which scale are you planning to start at — small kachi ghani unit or medium oil mill? Drop your question in the comments or call our team. We respond within the business day.
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