How mustard oil mills are running

In India mustard sell for Rs 30 per kg and mustard oil sells for Rs 80 per liter.
Mustard seed yields 33% oil. It implies by milling 3kg (-Rs 90) mustard seed, the oil mill gets 1 liter oil (+Rs 80). Directly there is Rs. 10 loss per liter of mustard oil. Moreover there are expenses on labour and electricity.
 

In India mustard sell for Rs 30 per kg and mustard oil sells for Rs 80 per liter.
Mustard seed yields 33% oil. It implies by milling 3kg (-Rs 90) mustard seed, the oil mill gets 1 liter oil (+Rs 80). Directly there is Rs. 10 loss per liter of mustard oil. Moreover there are expenses on labour and electricity.

Yet you must be happy that you have 1.5 to 1.8kgs of cake.
The cost of cake sold is not less than Rs20/kg.

Mustard oil has more demand than other domestic oils like coconut/ground nut and even Soya to some extent.

Bhadrinath.
 

What do you want to know?? Do you want to start a mustard oil milling unit??

I am just studying the business. There are allegations that oil mills are diluting mustard oil with other cheap oils to decrease cost. You can notice that there are two kinds of mustard oil in the market - one is Kacchi Ghani mustard oil which is Rs 10 to Rs 15 more expensive than ordinary mustard oil.
 

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