Corn DDGS Oil Extraction Unit
- KafilaAgro CattleFeed
- Jun 27
- 3 min read
🏭 Corn DDGS Oil Extraction Unit: A Profitable Agro-Industrial Opportunity in Bihar
The demand for plant-based oils and protein-rich feed ingredients is rapidly growing across India. In this evolving market, a Corn DDGS Oil Extraction Unit presents an outstanding investment opportunity—especially in agricultural states like Bihar, where ethanol production and corn-based byproducts are becoming increasingly common.
In this article, we’ll explore the profitability, setup requirements, and market potential of establishing a 25 TPD (Tons Per Day) Corn DDGS Oil Extraction Unit in Bihar, based on updated data as of June 2025.
🌽 What is a Corn DDGS Oil Extraction Unit?
DDGS stands for Distillers Dried Grains with Solubles—a byproduct of ethanol production using corn. It contains residual oil, protein, and fiber. A Corn DDGS Oil Extraction Unit uses solvent extraction technology (typically with hexane) to extract the valuable oil content and produce de-oiled DDGS, which is widely used in cattle and poultry feed.
The two main revenue-generating products are:
✅ Refined Corn Oil (for edible and industrial use)
✅ De-oiled DDGS (high-protein feed)
📍 Why Bihar?
Bihar is emerging as a hub for ethanol production, making it an ideal location for setting up a Corn DDGS Oil Extraction Unit. Several advantages include:
Easy availability of raw Corn DDGS from ethanol plants
Lower land and labor costs
Strong market demand for both corn oil and de-oiled DDGS
Government support for agro-processing and MSMEs
🏗️ Project Summary: 25 TPD Corn DDGS Oil Extraction Unit
💹 Financial Snapshot (June 2025 Market Rates)
This shows a strong ROI and a very short payback period—ideal for entrepreneurs and industrial investors looking to tap into agribusiness.
🧰 Project Components & Cost Structure
👨🔧 Manpower Requirement
A 25 TPD Corn DDGS Oil Extraction Unit typically requires:
4 Skilled Technicians
6 Plant Operators
4 Helpers and Laborers
2 Administrative/Quality Staff
Total manpower: ~16 persons
📈 Market Outlook
🌽 Corn Oil:
Corn oil is used in cooking, cosmetics, and poultry nutrition. The current average market rate for refined corn oil is ₹165/kg, making it a high-value product with stable demand.
🐄 De-oiled DDGS:
With high protein (~30%), de-oiled DDGS is increasingly preferred in cattle, poultry, and aquafeed. The average selling price is ₹13/kg, offering consistent revenue.
🛡️ Regulatory Requirements
To set up and operate a Corn DDGS Oil Extraction Unit in Bihar, the following approvals are required:
Factory License
Pollution Control Board (BSPCB) Clearance
PESO License for hexane
FSSAI License (if selling edible oil)
GST Registration
💡 SWOT Analysis
🏦 Funding Options
You can fund the project through a combination of equity and debt:
Eligible for support under MSME and Agro-based schemes from NABARD, SIDBI, and Bihar Government.
✅ Final Verdict
A Corn DDGS Oil Extraction Unit at 25 TPD capacity in Bihar is highly profitable, scalable, and future-ready. With raw material availability, rising demand for both corn oil and de-oiled DDGS, and strong returns, this project is ideal for investors and entrepreneurs looking to enter India's growing agro-industrial sector.
📞 Need Help Starting Your Own Unit?
If you're planning to set up a Corn DDGS Oil Extraction Unit in Bihar and need help with:
Project report or DPR
Machinery selection
Market linkage for oil or de-oiled DDGS
Government subsidy or bank loan application
Contact us today — we're here to help you succeed in agro-industrial ventures!
