Study on Financial Parameters of Rice Bran Edible Oil Processing

Abstract

This study was undertaken to identify the automatic and semi-automatic rice mill by-products, the technological process of processing rice bran oil and to analyze the financial parameters of rice bran edible oil processing to investigate the ways and means for proper economic utilization of the milled rice by products, specially the bran. Two rice mills at Gouripur, Mymensingh and one rice bran oil mill at Sherpur were visited and interviewed with carefully designed survey questionnaire for identification of milled rice by products and assessing financial status of oil mill. This study identifies rice bran, husk and broken rice as by-products and whole rice as main product of automatic and semi-automatic rice mills. In processing rice bran, edible oil is produced as the main product and de-oil rice bran, free fatty acid, gum, wax, splint earth are also produced as by-products. De-oiled rice bran is used in fish feed and Poultry feed mill, free fatty acid gum and wax are used in soap factory and splint earth is used in brick field as fuel. In the year of 2011, the industry processed 49,500 tons rice bran, purchased from different rice mills. Total input cost of the industry was Tk. 11,32,88,628 including the cost of bran and chemical used. The total cost of processing operation was Tk. 28,98,38,952 and revenue was Tk. 1,48,63,32,396. The oil mill earned a net profit margin of Tk. 6,36,07,163 and value addition of products was Tk. 3,54,46,115 with a benefit-cost ratio of 1.1. There is a huge unmet market demand of the products of the rice bran edible oil mill in the country and there is abundant volume of supply rice bran from the existing automatic and semi-automatic rice mills. This is high time to establish new rice bran edible oil mills in the country to reduce dependency on imported edible oil and to save foreign currency.