§1What this business is
Castor seeds are cleaned, cooked, dried and pressed in screw expellers; the oil is filtered in a filter press and the pressed seed comes out as cake. The oil goes to medicine, cosmetics and industry (biodiesel, polyurethane adhesives, machining oils, refrigeration lubricants). Raw seeds contain ricin, a poison; heating during processing makes the oil safe.
Capacity: 400 kg seed a day, 1,20,000 kg a year at full capacity, giving 48,000 litres of oil (40%) and 66,000 kg of cake.
§2Is it right for you?
Who it is for
Someone in castor-growing areas with trading contacts.
Who it is not for
Someone without a seed supply or buyers.
Advantages
- India produces about 85% of the world's castor seed (report)
- Both oil and cake sell
- Simple expeller technology
- Demand from medicine, cosmetics and industry
Drawbacks
- Seed prices swing with the crop and with trading
- Seeds and cake contain ricin — handle with care
- Small expellers recover less oil than solvent plants
- Thin margin in the early years
Skills you need
- Buying seed
- Running expellers
- Filtration and quality
- Selling to industry and wholesalers
Why difficulty 2/5: Known technology; buying seed well decides the profit.
§3Market
Who buys
- Pharmaceutical and cosmetic makers
- Lubricant, biodiesel and polyurethane makers
- Buyers of castor cake
How it sells
- Oil traders and wholesalers
- Direct sale to industry
Good to know
- The report cites a global castor oil market of 790.5 kilotons in 2019, expected to reach US$ 1,470 million by 2025.
- Oil is sold at ₹180 a litre in year 1, rising to ₹200 in year 5.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Heavy-duty oil expeller, chamber 24 × 4 in, 130–150 kg an hour, with oil collection tank | 2 | ₹2,40,000 |
| Filter press 16 × 16 in, 16 taps, with filter cloth and trays | 1 | ₹70,000 |
| Electric motor, 3-phase 10 HP, with starter | 1 | ₹35,000 |
| Baby boiler with chimney, spark box and 1 HP feed pump | 1 | ₹75,000 |
| Oil decorticator with 2 HP motor | 1 | ₹50,000 |
| Other machinery and spare parts | — | ₹30,000 |
From: PMEGP sample project report — Castor Oil (prepared by Udyami/Samadhan)
- Castor beans (seeds)contain 40–60% oil, mainly ricinolein
- Packing material
From: PMEGP sample project report — Castor Oil (prepared by Udyami/Samadhan)
§5Licences & registration
- Udyam
- GST
- Pollution Control Board NOC
- FSSAI licence (the report lists it)
- Boiler registration if your boiler needs it
- Trademark (optional)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP and MUDRA fit the ₹13.89 L project; CGTMSE for a loan without collateral.
§7Money
How the investment is worked out: Building & civil work (1,000 sq ft) ₹4.00 L, plant & machinery ₹5.00 L, furniture ₹1.00 L, working capital ₹3.89 L = ₹13.89 L.
Working capital: Working capital ₹3.89 L; bank demand ₹3.50 L.
Year not printed on the report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: IOPEPC (Indian Oilseeds and Produce Export Promotion Council)
- Confirm the 8-digit ITC-HS code on the DGFT site.
§9Risks — where people fail
- Seed price
- Low oil recovery
- Toxic cake handling
- Few large buyers
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working castor oil mill unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, GST), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Castor Oil Mill?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.