How To Start Rice Mill Business | Best Profitable Business 2022

How to start rice mill business, Market Potential, Required licenses, and Permits, location, Necessary Equipment, Required Machinery, Price, and Place to Buy, Installation, raw material, Manufacturing Process, Investment and Profit, how to sell, Challenges of the rice milling business

How to start a rice mill business

In India, where agriculture is still the main livelihood of the people, there is also a lot of demand for industries dependent on agriculture, so starting a rice mill business here will prove to be a profitable deal. Rice is one of the main crops of India, it provides food to 65 percent of India’s population. This is the crop of our country which is planted on 37 percent of the total irrigated land of the country and it contributes to 44 percent of the total food grain production in India.

How To Start Rice Mill Busine

West Bengal is the state in India where rice is produced in maximum quantity, but do you know, the rice we get from the fields, we cannot use in our kitchen in raw form. To make it usable, it has to be modified after the due process on it. This is the process that is done to remove the hulls and bran from the paddy to make the polished rice that is used daily.

Market Potential for Rice Mill business

As we have already mentioned, rice is the important food for most of the population present in our country. About 70 percent of the population present in India uses packet rice daily. Apart from this, India is the only country where Basmati rice is produced and exported in maximum quantity. Saudi Arabia, Iran, United Arab Emirates, Iraq, and Kuwait are the countries where rice is exported from India. Therefore, the rice mill is one of the largest agro-processing industries in the country. And it is one of the most profitable businesses present in India.

Required licenses and permits for Rice Milling Business

To start any business, you must have the necessary licenses and permits, then only you will be able to run your business smoothly without any legal hassle. Some of the documents required for this business are listed as follows.

  • The first and foremost essential document for any business is the registration of your company. So when you think of putting your mill, first get its ROC made.
  • The next important registration after ROC is Udyog Aadhar Registration and MSME Registration (Micro Small and Medium Enterprises). You will also have to get it built before the start of your mill and apart from this, you will also have to get a factory license for your factory.
  • In addition to these licenses, you will also have to obtain consent from the Pollution Control Board to set up and operate your mill.
  • Along with this, you will also have to apply for a license according to the Rice-Milling Industries Act 1958.
  • It is also mandatory for you to get your vet registration done. You will also have to follow the rules of PFA and ESIC registration for the employees of your mill.
  • If you want to export your goods outside the country, then it is also mandatory for you to take IEC registration.

Location

The selection of the place is the most important decision for the success of this business. It is very important for your business that your mill should be close to the area where rice is produced. For this, you should choose a place where the farmer can easily reach and can reach his produce to you without any trouble. Otherwise, you will have to spend more on the transportation of raw materials. You should keep in mind that for this industry, you will need a large space so that you can easily store the raw material supplied by the farmer, and also you need a suitable place to store the finished rice after modification. space will be required. This business of yours will also require more space for the setup of the machines, and at the same time, you will also have to take care that your employees are able to work in enough space and they get an adequate system of air and water.

Necessary Equipment for Rice Milling Business

Your main expense for setting up this industry will be your space and machine. If you have sufficient arrangement of money, then it will be a profitable deal for you to buy a new machine instead of an old machine. Because with old machines, most of your money is spent on the maintenance and renovation of the machines. And when you buy a new machine, you are also given free maintenance and installation for a few days by the machine vendor company, so you can also take advantage of these facilities. Apart from this, you have to choose a place where a continuous power system is available, and you are also required to arrange for a generator in the absence of electricity. Along with this, you will also have to make proper arrangements for water for this business.

Required Machinery for Rice Milling Business

In the rice mill, to clean the rice and prepare it for sale in the market, you have to go through several processes for the paddy, for which many types of machines are installed throughout the setup. The names of some modern machines used in this industry are as follows.

  1. Rice Cleaning Machine
  2. Rice De-stoner Machine
  3. Husker Machine
  4. rice color sorter
  5. Pedi Separator Machine
  6. Rice Whitener Machine
  7. Rice Polishing Machine
  8. grading machine
  9. gran dryer
  10. Measuring End Packing Machine
  11. Rice Milling Detection Machine

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Price of machines and where to buy

The price of the machine used in the rice mill starts from 4 lakhs and increases according to its efficiency. If you want to start this business on a very small scale as a small scale industry, then this machine is available for you in the market for less than 1 lakh. The selection of your machine completely depends on the size of your business. Here we are providing you with some websites from where you can collect information regarding the price of this machine and its seller.

Installation

After you have completed the process of buying the machine, now is the time for its installation. And for this work, you will need a trained person, who has knowledge of this thing. You do not need to worry much about this process because most of the companies provide the facility of installation on your own. The successful installation of the machine requires ample time, so it requires some patience from the owner.

Getting your raw material for Rice Mill

The success of your industry is based on the fact that you are able to sustain production throughout the year in your business. You can get raw materials for this industry in the following ways –

  • From Rice Field – If you have your own paddy field, then this industry is beneficial for you because you will not have to worry about raw materials for your business. But you should make sure that you have enough raw material available for the whole year.
  • Buying paddy from farmers or from the market – If you do not have your own farm then you can buy raw material (paddy) from farmers or even from markets. And in this, raw material is easily available to you throughout the year. But in this, you have to pay a lot of attention to the price of paddy in the market, which increases a lot when there is no season, and buying raw material at a higher price affects your profit.

Rice Manufacturing Process

After the paddy harvest comes from the field, it is passed through many processes, then it is ready to be sold in the market. Following is the process of preparing rice.

  • Pre-cleaning – In this step every impurity available in the paddy is cleaned and spoiled grains are removed from it.
  • De-stoning – In this process the existing small stones are separated from the paddy and it is prepared for the next process.
  • Parboiling – It helps in improving the nutritional value and quality by gelatinization of starch inside the rice grain. This also improves milling recovery.
  • Husking – In this process, the husk is separated from the rice.
  • Husk Aspiration – Now in this process the husk is separated from brown rice or unhusked paddy.
  • Separation of Paddy – Now here rice is separated from the unhooked paddy.
  • Whitening – Nowhere in this process the layer of brown rice and part of the microbes are separated.
  • Polishing – Now here the remaining brain particles are removed and the condition of the rice is improved by polishing the outer part of the kernel.
  • Length Grading – Now here small pieces of rice are separated and quality rice is collected.
  • Packaging – This is the last step in which the rice is weighed and packets are prepared in different quantities. Now, this rice is ready to reach the customer, which you can deliver to various vendors in the market.

Cost and profit involved in this industry

If you want to start this business on a small scale, then you can start this business in just Rs 3 lakh 50 thousand, if you do not even have that much money, then you will get a 90 percent loan from the government for this business. can be obtained from. In the cost of this business, 3 lakhs is spent on your space and machines, while the remaining 50 thousand is spent on your maintenance, which includes electricity bill and staff expenses. With the setup you do with this investment, you can prepare about 370 quintals of rice. And in this, including raw material and other expenses, it costs you about 4 lakh 50 thousand, while you can sell it further in the market for about 5 lakh 50 thousand. This means your one-month profit will be around 1 lakh. If you do this business on a large scale, then both your cost and profit will increase.

Where and How to sell Rice

Wholesale sell market

You can sell the product to the wholesaler in bulk amounts.

Online market

sell B2B Websites:

  • Alibaba
  • Indiamart
  • Tradeindia
  • Exporters India

sell B2C Websites:

  • Amazon
  • Flipkart
  • Snapdeal
  • Bigbasket

Government loan for this business

You can get a loan of up to 90 percent for this business, for this you have to apply under the Prime Minister’s Employment Generation Program. If you want to apply for this, then you can get the application

Challenges of the rice milling business

Every business has its own challenges, in the same way, there are many challenges in this business as well, which are as follows.

  • High Capital Investment – ​​The latest rice milling machine available in the market is such a machine, which further simplifies the process of preparing rice. And at the same time, better quality goods are prepared from it. But the cost of these machines is high. So to deal with this problem, you have to find an investor, but if you do not get any investor, then you do not need to worry, because nowadays loans are easily available from the schemes run by the government.
  • Regular Maintenance – Compared to the machines used in the past, modern machines require constant maintenance, only then do they give you the desired output. And you have to spend a lot of money on the maintenance of these machines.
  • Requirement of experts to run this business – Experienced persons are required to operate machines and other management to run this business, and if you do not get experienced person, then you have to give proper training to your employees So that they can be efficient in their work. Your money is also spent in the process of this training.
  • In this way, the business of rice mill is a profitable business, which you can earn profit by setting up in areas of high paddy production. We hope that through this article of ours you will be able to earn complete information for your business.

FAQ

How to start a Rice business?

Rice business can be done in four ways, you decide how you want to start this business. Within the retail business, you have to take a shop and keep different varieties of rice. You can buy rice at a cheap price and sell it to the retailer and another wholesaler.

How to do the rice wholesale business?

Get the NFA license first.
buy the proper equipment
Choose a good location for your rice business.
Invest in proper storage of your rice.
Know your suppliers and potential customers

How much rice is produced in 100 kg of paddy?

At present, rice mills have to give 67 kg of rice instead of 100 kg of paddy.