Unrefined Oils of India

The edible oil market in India is one of the largest in the world, which is valued at over ₹2.3 lakh crore (about USD 27 billion, 2024 estimates). Although the shelves of retail stores are full of refined oils, unrefined oils are steadily showing increases in sales with more cold-pressed oils, ghani-pressed oils, and virgin oils being available to consumers. The trend is being driven by consumer demand for healthier, less processed, more genuine oils, especially in urban and premium segments.

For new firms and new processors, there are significant opportunities within this industry. But unrefined oils tend to be much harder to produce due to technical aspects of stabilization, extraction, packaging, and regulation. Food consultants such as Frontline Food Consultants and Engineers (FFCE) help to fill the gap between traditional extraction methods and existing food technology and maintain product safety, market viability, and scale.

What are Unrefined Oils?

Unrefined oils are chemically and/or mechanically processed, and are not highly refined – e.g., bleaching, neutralization, and deodorization. They carry their own flavor, aroma, and bioactive compounds (e.g., polyphenols, phytosterols, vitamins). Main Categories in India Cold- Pressed Oils These are pressed out with the assistance of screw presses, and are handled at temperatures below 50°C. They maintain heat-sensitive antioxidants and flavor contained in the oil. Examples include cold-pressed sunflower oils, cold-pressed groundnut oils, cold-pressed coconut oil, and cold-pressed sesame oil Ghani pressed oils (Traditional Kolhu method) Seeds are crushed gradually in either wooden or metallic ghanis (mortars), These oils are cold pressed at room or slightly elevated temperatures. Ghani oils are pushed by rural and semi-urban consumers and viewed close to be Ayurveda or heritage foods. Virgin Oils Virgin coconut oil (VCO): derived from fresh coconut milk using centrifugation or fermentation. Virgin olive oil (import segment): experiencing expansion with increasing urban health consciousness. Virgin oils carry active natural phytonutrients and culture statistics in high-value segments e.g., nutraceuticals, cosmetics, gourmet food and cooking and others. Other conventional oils:

1. Mustard Oil (Kachhi Ghani): distinct flavor and fragrance, quite popular in Eastern India.
2. Groundnut Oil (Unrefined): flavorful, stable oil and used.
3. Coconut Oil: edible and cosmetic applications.

Technical Aspects in Unrefined Oil Production

Producing stable, safe, and marketable unrefined oils requires meticulousness in engineering:

1. Seed/Kernel Preparation

• Cleaning, dehulling, size reduction.
• Pre-treatment (groundnut and sesame by mild roasting) for enhanced taste and yield.

2. Extraction Methods

• Cold Press (Mechanical Screw Press): bioactivities left intact with 28-32% efficiency.
• Traditional Ghani: low efficiency (approximately 10-15 kg/hr), labor intensive, real product.
• Centrifugation (Virgin Coconut Oil): separates the emulsion of coconut milk and oil.

3. Filtration & Clarification

• Natural sedimentation, cloth filtration, or the contemporary plate-and-frame filter.
• Must balance clarity against retention of bioactives.

4. Packaging & Stability

• Challenges include the oils’ unrefined state, rancidity, and the necessity to account for oxidation. 
• Use packaging that has oxygen barrier qualities at all times (such as multilayer pouches, glass bottles, and amber PET).
• Keep it as little oxidized as possible at <25°C. Buying edible oils in smaller quantities and producing them frequently is another method of conserving them.

5. Shelf-Life Considerations

• Typically 6–12 months, shorter than for refined oils.
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• Must be subjected to accelerated shelf-life tests under Indian climatic conditions.

Regulatory Environment (FSSAI)

• The Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011 provide the following definition of edible oils provided by the FSSAI:
• Cold Pressed Oils: Mechanically derived only (no chemical treatment).
• Virgin Oils: Must possess specified peroxide values, acid values, and organoleptic characteristics.
• Labelling: there must be a clear declaration of type (cold-pressed, virgin, ghani) on labels.
• FoPL (front of pack labelling): mandatory in case of high saturated fats.
• Individuals like FFCE will manage compliance for labelling issues, FoPL, health claims and export certification (Codex, EFSA, USFDA).

Market Size and Prospects for Growth

• The cold-pressed/unrefined oil industry in India is expected to be worth around ₹8,500 crore by 2024, with a compound annual growth rate of 12–14%.
• Urban Premium Segment: Cold-pressed coconut and groundnut oils, sesame oils, and their variations, marketed to consumers that are health-conscious.
• Exports: Increased virgin coconut oil, groundnut oil, and mustard oil demand, commands Middle East, European, and North American markets.
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• B2B Demand: Unrefined oils are being used as functional ingredients in nutraceuticals, cosmetic and gourmet foods markets increasingly.

Industry Challenges

• Oxidative Stability: Shortened shelf-life, vulnerability to rancidity.
• High Production Cost: Lower extraction yields compared to solvent extraction/refined oils.
• Market Authenticity Challenges: Refined oil adulteration waters down consumers’ confidence.
• Scaling Traditional Processes: Ghani pressing is old-fashioned but non-scalable.

Role of Food Consultants such as FFCE

• Consultants offer end-to-end technical and strategic advisory:
• Product Development & R&D: Development of authentic formulations (cold-pressed/virgin) with improved stability.
• Establishment of Plants and Machinery: Some types of machinery are screw presses, ghanis, filter presses, and centrifuges.
• Shelf life can be increased by using natural antioxidants like tocopherols and rosemary extracts.
• Systems for Quality Management: Oil mills implemented HACCP, ISO 22000, and FSMS.
• Compliance & Licensing: Supported FSSAI licensing, labelling, and FoPL queries and also for requirements of exports.
• Market Entry Strategy: Guidance premium positioning, B2B, and entering nutraceutical/cosmetic sector.

Future Issues

• Functional fortification is the process of adding vitamin E, plant sterols, or omega 3 to oils.
• Sustainable Oils: Cold-pressed oils made from underutilized or novel seeds including rice bran, flaxseed, and moringa.
• Hybrid Oil products: Cold pressed oils with infusion (herbs/spices etc.) for culinary use.
• Export Growth: Virgin coconut oil and mustard oil as “superfoods” in international health markets.

Conclusion

India’s unrefined oils market is a high-speed, premium, and health-driven category. While being driven by consumer awareness, processing, stabilization, and compliance technical challenges render it a complex undertaking to enter.

By offering expertise in extraction processes, regulatory scenarios, plant cultivation, and product positioning, food consultants like Frontline Food Consultants and Engineers (FFCE) help companies successfully penetrate this new market — combining India’s centuries-old oil heritage with modern food science.