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Satish Lele


India imports around 400,000 tons of Crude Palm Oil (CPO) per month, from Malaysia and Indonesia. (It also imports 400,000 tons of palmolein per month from Malaysia and Indonesia. CPO is also refined in Malaysia and Indonesia and Palm Stearin is separated from it). In India, Palm Stearin is separated from CPO, and it can be around 40,000 tons per month or 1,200 tons per day. Almost same quantity (1,200 tons per day) can be imported from Malaysia and Indonesia. About 40 BioDiesel plants of 30 tons per day, can be set up based on this locally available raw material and many more based on imported palm stearin.
There are many large Palm Oil Refiners in India, who separate Palm Stearin from Crude Palm Oil. The remaining fraction, Palm Olein is then further refined to sell as Edible Palm Oil. Many of them are situated near ports which can handle bulk edible oil ships. Most of these are around Kandla / Mundra Ports in Gujrath, Kakinada Port in Andhra Pradesh and Haldia Port in West Bengal (near Kolkata). Most of these refiners are large units and can set up large viable BioDiesel plants in their own premises. They can use existing utilities like steam, cooling water, material handling etc. This ensures a continuous supply of raw material in molten form. Since Palm Stearin has very low Free Fatty Acid content, it is the best raw material for manufacture of BioDiesel. Also these port can handle import of Methanol in Ship Loads.
Palm stearin is the solid fraction of palm oil that is produced by partial crystallization at controlled temperature. Palm stearin consists of mostly glyceryl tripalmitate, with most of the rest being glyceryl dipalmitate monooleate. A typical palm stearin might contain almost 50% palmitic acid and 35% oleic acid.


Customs or Import Duty on Industrial monocarboxylic acids, acid oils from refining, industrial fatty alcohols under HS Code 38231900 (from cybex.in) / Customs or Import Duty of PALM ACID OIL under HS Code 38231900

Used Cooking Oil Collection
  1. Is it worth undertaking such a business?: Used Cooking Oil Collection is a growing business worldwide, especially now in UAE, Qatar, Kuwait etc. It helps restaurants to get rid of their waste product, which if drained to sewer, would otherwise put higher treatment load on waste water treatment plant. Collectors can convert Used Cooking Oil into BioDiesel or sell it to manufacture of BioDiesel. Manufacture of BioDiesel is like purifying used cooking oil. Since BioDiesel is a fuel, it does not have laws applicable to food production. It is governed by rules of petroleum products. (In Asian countries, collection of non-edible rice bran oil is a big business.)

  2. What is the profitable minimum collection?: Since it is collected by sludge collection trucks, minimum collection should be one truck load. Same truck can have multiple trips, and collect more Used Cooking Oil. The volume of collection of Used Cooking Oil also depends on storage capacity, and how quickly it is sold for Manufacture of BioDiesel.

  3. What price to expect per ton of Used Cooking Oil?: The price varies from buyer to buyer and quality of Used Cooking Oil. It has higher selling price if it has low free fatty acid content, and if it is lightly coloured. It is widely exported to Europe. For export to Europe you require ISCC (International Sustainability & Carbon Certification) awarded by SGS Germany for used cooking oils, guaranteeing the traceability and reduction of greenhouse gases. The price range can be US$ 650 to 700 FOB Europe.

  4. Is it necessary to have the used cooking oil clean and dewatered before selling to customers?: Preferably it should be free of moisture and food ingradients. It will have better price.

  5. What are the procedures to have safe production and manpower working place?: The truck operating workers should have training of how to operate the truck. The sucking mechanism should be operated only when end of pipe is dipped in oil. The Used Cooking Oil should not spill while sucking it from storage drums at customers premises. Only one person, who drives the truck is required for operation. Some staff is required at storage depot.

  6. Customers who are willing to buy such product?: Most manufactures of BioDiesel are constantly on look out for new sources of Used Cooking Oil.

  7. What are the quantities expected to be demanded per year?: Most collectors collect around 300 to 400 tons of Used Cooking Oil per month at one location. It can be duplicated at multiple locations.

In India, vegetable oil is used for 2 purposes. 90% of oil is used for cooking of vegetables and lentils. In this case oil is used to extract spices (Tadka) and then raw or cooked vegetable is added to it. Same is the case for lentils. This oil can not be recovered as used cooking oil. Roughly 10% is used for frying. In this case also oil goes with fried items. Hence practically no used cooking oil is available in India. The eating habits, are different in western and eastern world (in India, Pakistan, Bangladesh, Sri Lanka and ASEAN Countries).
The Food Safety and Standards Authority of India (FSSAI) has included a total polar compound as a criterion for the quality of vegetable oil to be re-used. It is well known that repeated use of the same oil for frying of foods leads to changes in physiochemical, nutritional and sensory properties of the edible oil. It is now Mandatory to monitor the quality of vegetable oils during frying. In order to safeguard consumer health, FSSAI has fixed a limit for Total Polar Compounds at 25 percent beyond which the vegetable oil shall not be used.
The most abundant compounds formed possess higher polarity than their parent triacylglycerides (TG) and low volatility. Polar compounds account for all the nonvolatile alteration compounds formed during frying, compounds originating from oxidation at high temperature (oxidized monomeric TG, dimeric and oligomeric TG) and compounds released from hydrolysis (fatty acids and diacylglycerols). Free Fatty Acid content is almost same as this Used Cooking oil having Total Polar Compounds.
The Used Cooking oil having such high amount of polar compounds, can not be used for production of BioDiesel, using standard Trans-Esterification process. Enzyme based process can be used for this raw material. However, Enzyme based process is tricky and enzymes are expensive and not easily available.
We have been trying to collect Used Cooking oil for last so many years, but could not get much. One big Potato Wafer manufacture, who supplies to Mumbai, reject about 400 to 500 liters per month. Another large Bakarwadi manufacturer reject 3,000 to 4,000 liters per month. At this level of supply, we will have to collect Used Cooking Oil, from few thousand of users to run a plant of BioDiesel of viable size. This collected oil, should be used for manufacture of BioDiesel immediately. For that collection rate per day, should be same as production capacity of BioDiesel plant per day. If this oil is stored for longer time, during collection, Free Fatty Acid content of it increases.
However, this is a good news for cottage soap industry (consuming 500 to 1000 liters per day). Cottage soap industry is currently facing acute shortage of oil. Even if they are offering Rs. 40 to 45 per liter for oil, they are not getting enough of it. Currently production of soap in India is 800,000 tons per year and large proportion of edible / non-edible oil is used by this sector. Used Cooking Oil with Polar Compounds at 25 percent is boon to cottage soap industry, and curse for BioDiesel industry.
Many cottage soap manufacturers mix this oil with alum water, with agitation, and then settle it. The food content of oil gets transferred to alum water layer. It is then settled and water layer is drained to effluent disposal system. After this clarification, Top oily layer is used for soap making. Even if there is any moisture in it, there is no problem for soap making (as water is catalyst in soap making). Moisture in oil has to be removed for manufacture of BioDiesel.
Repurpose Used Cooking Oil: The Food Security and Safety Authority of India (FSSAI) has initiated this effort. Currently there is only one partner. To collect oil you have to register as Aggregtors and then only you can collect oil. There are a number of aggregtors. 26 Biodiesel plants (set up from 2008 till date), are members of this scheme. for Indian Notification for Used Cooking Oil.

Likely chemical analysis of Used Cooking Oil with 25% Polar Compounds

Typical Fatty acid Profile of such oil

for testing procedure to check Polar Compounds in Used Cooking Oil.
    Collectors of Used cooking oil under this scheme:
  1. Aries Enterprise, Jaipur, M: 99836 35111, arises.org@gmail.com, Mr. Sushil Vaishnav.

Their goal is to dispose off Used Cooking Oil (UCO) in the right way thereby preventing it from going back into the food chain and risking our people's health.
It will be compliant with the FSSAI Guidelines which states, the Oil cannot be used for frying beyond 3-4 times and no fresh oil can be added to such fried Oils with the limiting value of 25% TPC, which means this oil can no more be used, by either the user or further down the Food chain and needs to be discarded. FSSAI guidelines also Prevent, the further sale of such edible oil in the marketplace, to any other Dealer of such Oils.
Biodiesel processing cost is around Rs. 10 per liter. This plus landed cost of oil per liter, is cost of manufacture. Price of BioDiesel in India should be 10% less than that of Diesel as calorific value of BioDiesel is 90% that of Diesel.

    Addresses of BioDiesel and Used Cooking Oil Suppliers:
  1. Shams Alam, Sales Executive, Lootah BioFuels, P.O Box : 553 , Dubai, United Arab Emirates, Tel: 971 4 2099 298, M: 971 525639290, shams.alam@lbf.ae, www.lbf.ae

  2. Virendra Somaiya, Director, Global Mercantile Enterprises FZC, POBox 9042, Dubai United Arab Emirates, Tel: 9714 3316183, 97155 8132372, 97150 8662211, Skype: rishisomaiya1, merikininternational@yahoo.com

    Addresses of Used Cooking Oil Supplier:
  1. Mr. C.H.Haksar, Director Opertation, collects upto 200 tons per month. Erigo Trading and Contracting WLL, Al Baker Trading Complex, Building No: A3, 2nd FLoor, Old Airport Road, Po. Box: 201438, DOha, Qatar, Phone: +974-33238800, +974-44121943, Email: haksar@erigo.co

  2. Rajiv Khandelwal, Partner - S.M.International, Owner - G.R.Exports, 22\3 Pandit Motilal Nehru Road, Agra - 282 004, India. http://yourproductfinder.com, Tel/Whatsapp: 91-8126025602, rajivk92@gmail.com, info@yourproductfinder.com, Skype: rajivk92


Acid oil, which is a by-product in vegetable oil refining, mainly contains free fatty acids (FFAs) and acylglycerols. Acid oil contains fatty acids (1 to 2%), phospholipids and sterols (8 to 10%), free moisture (5 to 8%). Used cooking oil has pungent odour and dark brown colour. Amount of acid oil produced is 4% of Vegetable oil refined.

    Composition of Acid oil % by weight
  1. Total Fatty Acids 88%
  2. Mineral Acids 1.1%
  3. Moisture 2.2%
  4. Unsaponifiable Matter 8.6%
Most properties of acid oil are similar to the corresponding oil. 70 to 80% yield of Biodiesel can be obtained from acid oil.
    Addresses of Acid Oil Supplier: The oil that is rejected during process of refining, is also available in large quantities. This oil has free fatty acid content of 15 to 20%, and can be used for manufacture of BioDiesel.
  1. Suresh Joshi, M: 94400 55892, joshi.s25@gmail.com, Hyderabad

  2. Dinesh Sales Corporation: 15, Prafulla CHS, A.G.Pawar Lane, Near Voltas B House, Opp. Vardhaman Heights, Byculla (E), Mumbai, 400027. Tel: 91-22-23772376 / 23772377, M: 91-9321354239, WA: 91-9320254239, Fax: 91-22-23772377, Skype: dineshsales, http://www.dineshsales.com/rice_bran_oil.htm

  3. S. N. Gandhi, Sona Enterprise, M: 91-9322530191, 105, Ashish Udyog Bhavan, Opp.SNDT College,Near Liberty Garden, Malad(West), Mumbai, 400064, Tel:91-22-66780471 to 473, Fax: 91-22-66780474, sngandhi@vsnl.com, www.sngandhi.com

  4. Rajesh Sharma, Gryfon Commodities, 101, First Floor, Sushant Tower, Sushant Lok II, Sector 56, Gurgaon, 122 011, India, M: 91-9911558807, rajesh@gryfoncommodities.in

    Address of Animal Tallow Supplier:
  1. Kaumel Kerawalla, 9821600500, kerawallagroup@gmail.com