By TradeIndia Team in Business Tips — 17 Dec 2022

A Complete Guide to Starting Fish Oil Production Business in India

One of the favourite items on any non-vegetarian menu is fish. Don’t we all love to eat fish?? And the best part about fish is that unlike other sources of protein such as mutton and chicken, there are a lot of different species of fish. Thus, if you can eat Salmon on Monday, Singhi on Tuesday, Rohu on Wednesday, Tilapia on Thursday, Katla on Friday, and Roopchand on Saturday, and yet, be left with many more varieties of fish to select from the plethora of options, before you would restart the cycle from Salmon once again!!

There are many reasons why fish is such a popular item in every house. One of the major reasons for that is the high quality of protein in fish, and fish oil which is very rich in nutrients such as Omega 3 fatty acids. Normally, fish oil is a rich edible oil, that is extracted from the tissue of fish. Given that there are so many varieties of fish, it is suitable to extract fish oil from fatty fish such as tuna, mackerel, etc. Earlier, fish oil was primarily extracted from sea fishes, but due to over fishing and loss of habitat, the fish oil business was affected. However, in recent decades, the fish farm (raising fish in manmade ponds for meat, oil, eggs, etc) has allowed for the safe rearing and breeding of recommended varieties of fish. Therefore, such practices have allowed for the meeting of the global demand for fish oil.

Fish oil or omega-3 fatty acids are good forms of fat, that are recommended by doctors. Fish oil benefits are one of the major reasons why they are recommended by doctors. It aids in lowering the level of bad cholesterol and increasing the level of good cholesterol. We all know that high levels of triglycerides (Low-density fat) are the prime reason for heart problems and other health problems plaguing the world today. Animal fat is always a better substitute for store-bought oils.

Given that there is so much interest in fish oil as we love to eat fish for health and nutritional benefits, it is understandable that the Fish oil business has become one of the most lucrative businesses, and is attracting interest from a lot of entrepreneurs. In this article, we will discuss how to start and run a successful fish oil business.

First thing we must understand is that a business requires careful studying, systematic gathering of requisite knowledge of the domain, and clever application of findings. As the world population is constantly increasing, the demand for fish oil will increase exponentially, according to the trends. As the fish population in the sea is mitigating, it would be unwise to harvest more than we should from the oceans. Thus, the only option remaining is the rearing of fish oil domestically, in ponds with a controlled environment.

Generally, it is not recommended to just extract fish oil and focus only on that business. If one looks at the process of fish oil extraction, the oil is extracted from fish waste, and the remaining fish waste is converted into animal and fish food. Fish, including freshwater fish, marine fish, and mammals that live in the ocean are used to extract or make "fish oil." Except for fish liver oil, all marketable fish oils are really frequently derived from the by-products (fish wastes) of fish processing. The majority of fish meal manufacturing facilities also generate fish oil. Fish oil is often utilised for industrial purposes, while fish meal may be used to produce animal feed. Therefore, the first thing to bear in mind is that you should not just start a fish oil business, but also get into fish meat, fish and animal feed, and fish oil business. That way, every bit of the fish is utilized and it adds to the profitability margins.

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Now that we have established that fish must be raised in artificial ponds in a regulated environments, the next step is the selection of fish that will provide meat as well as fish oil. This is vital for the success and sustainability of the business. Many factors, such as manpower, raw material availability, market demand, etc, contribute to the selection of the right breed of fish. Common fish breeds include Carp (Rohuu, Katla, Grass Carp, etc), however, there are breeds too that have emerged as viable options such as roopchand (red Piranha), Tilapia, Pangas, etc. As fish breeds isolate themselves depending on the depth of the pond, polyculture is the best avenue for fish rearing. In a single pond, multiple fish breeds can be raised. One can get the best quality of fish seeds (generally as fingerlings) by approaching the fisheries department or a local agricultural university.

In order to begin your own enterprise, you must seek the necessary licenses and approvals from a different state and central government departments. Being licenced and approved will ensure that your business will be legally eligible for receiving subsidy and funding from the government. The government of India is investing heavily into SMSE sectors and encouraging entrepreneurs into the fishery. That is the reason why you will observe that there are many new Fish oil manufacturers in India. This scheme requires registration with the SMSE department to get the Udyog Aadhar card. The government provides capital loans at a very low-interest rate. That is why documentation must be proper and clear. You need to register your company or business with the central government to receive a GST number, and also register with the Commerce ministry of the state. By paying the necessary fee, you will get permission to operate your business through the local municipal office. You also need VAT registration, FSSAI registration, and BIS certification of IS1485:1976. The government is very strict about environmental laws, and thus the pollution control board will provide No Pollution certification after visiting your factory.

Remember, the majority of fish oil is manufactured from the waste of fish oil. Thus, you first need to grow the fish to the required size and then, have the recommended machinery to carry out the processing. Thus, you need to buy or lease out pond space. In the city, the land rates would be very high, thus it is prudent to set up your manufacturing facility close to the large water bodies, away from human settlements. This will also ensure that during the processing of the fish, you are keeping pollution away from the packaged products.

First, at the identified areas, dig the ponds of the necessary dimensions. Remember to do this after due consultation with the fisheries department. If your plant is located close to sea, then you can release salmon seeds also into the pond else fatty fish like tilapia, cat fish, crustaceans like crab, eels, and other fish recommended by the fisheries department must be selected.

Once the fish reaches the right length and weight, they must be brought into the factory for processing. The fish meat is taken off and packaged for selling to restaurants, while the fish waste is collected for further processing. Fishbone pellets are created from this fish waste. Fishbone meal serves as the raw ingredient. The fish meal will first be compacted into tiny pellets, which will then be processed using solvent extraction machinery for 20 to 30 minutes. The temporary holding tank is now injected with the oil mixture. The solvent is then evaporated using a stripping tower and an evaporator. To a solvent storage container with a diversion box, the reclaimed solution will be transferred. The crude oil moves via pipes to the refining step after flowing first from bottom of something like the stripping column into the crude oil gauging tank. The refined oil tank will thereafter be used to store refined fish oil. After the extraction process is complete, the fish meal will go through the process of solvent removal before being kept in the stacking area.

The next step is the marketing and packaging of your fish oil. Various machinery exists that make fish oil tablets or capsules, which come in gelatine packaging. Branding of your products is very important, and there must a clarity and honesty about carrying on with your business.

Conclusion: Fish oil carries a number of health benefits. Primary health benefits include healthy eyes and sharper brains. Fish oil is a good form of fat and recommended by many doctors. That’s why many fish oil businesses have been set up in India. One can always look to this sector if they are interested in a sustainable fisheries business. The best fish oil is extracted from fatty fish like salmon, etc.

FAQs: Fish Oil

Q. What are the disadvantages of fish oil?

Ans: Fish oil has a number of health benefits, but it has some disadvantages too. Fish oil is extracted from fatty fish and they might contain mercury, if harvested from unsafe ponds.