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Pakistan's first Rice Bran Oil (RBO) manufacturing unit will start production in December this year, aiming to add value to secondary agriculture products. Rice bran is an incredible source of vitamins, minerals, amino acids, essential fatty acids and antioxidant nutrients that help fight disease and promote good health. Pakistan is one of the largest consumers of edible oil and the consumption of oil stands around 3.3 million tons annually, while per capita consumption of oil stand at around 19 kilogram per annum.
The RBO, which has been declared as world's healthiest oil by the American Heart Association, will be produced for the first time in Pakistan with 100 percent raw material produced locally. The raw material used in the production of RBO is the Rice Bran, which is the by-product of the rice milling process. As per market estimates, Pakistan annually produced approximately 500,000 tons Rice Bran whereas the project will require 70,000 tons per annum.
Over 50 percent of the bran is produced in the province of the Punjab within the radius of 50-75 Kilometers, therefore the plant has been set-up in Mureedkay, Lahore, as procurement of rice bran will not be an issue in this area. The plant has been set-up by e2e Supply Chain Management with an investment of Rs 1 billion to produce the RBO, which is consumed in several countries including US, Japan and other countries.
Talking to Business Recorder, Abid Butt, Chief Executive Officer, e2e Supply Chain Management, said that project would also result in huge savings of foreign exchange in terms of import substitution of edible oil. "We have installed a state-of-the-art manufacturing facility which is fully integrated for extraction, refining and packaging," he added.
Pakistan is also one of the largest exporters of rice in the world, however is not producing bran oil like other countries. Presently, India is the largest producer of rice brain oil and annually some 3-4 million tons are being produced across the world mainly in Asian countries such as Japan, Thailand and China, he informed.
"Pakistani experts conducted a study on RBO in 80s' however no initiatives were taken to produce the oil to add value to secondary products. Even India has started production of bran oil and currently it is producing close to one million tons annually. However, there is ban on its export due to massive demand in the local market," Butt said. Pakistan produces more than enough rice, which not only meet the local demand but the excess quantity is exported. It is a source of foreign exchange earnings. Presently, rice bran is only used for animal feed and with this manufacturing unit another by-products will be produced from the rice.
He said that the plant, imported from India, has a production capacity of around 11,000 tons annually. "However, for the first year we are expecting a production of 5,000 tons," he added. As its production is linked with rice bran, this unit will be operational for six month every year. Presently, Indian experts are providing training to the Pakistanis for production of RBO.
At present, the RBO consumption is very low in the domestic market hence an aggressive marketing campaign will be needed to introduce the product in the domestic market, he added. "The RBO is high quality and the healthiest form of edible oil and low in cholesterol and sodium. Naturally-enriched with multiple nutrients, the RBO provides more health benefits compared to other edible oils, he said.
"We quintessentially pioneer the nutritional benefits of rice bran, add value through innovation, and develop alternative health products for our consumers, suppliers, farmers and our stakeholders at large," he added. Rice bran oil will be procured only from trusted network of local farmers and it will need a strong logistic network as fresh bran will be required for oil after milling, he informed.

Copyright Business Recorder, 2014

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