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Home » How to Start a Small Rice Mill Business – The Complete Guide!

How to Start a Small Rice Mill Business – The Complete Guide!

Small Rice Mill Business – The Complete Guide

A rice mill is the most popular business in the rural, which uses rice as the main raw material in the manufacturing process. This business is also referred to as rice miller, rice mill factory, rice milling, rice mill company, rice milling business, rice miller and so on. Basically, the rice mill business involves the production of rice through milling. This is mainly done by rice farmers using a rice mill that is specially designed for use in farming.

There are different types of rice mills available, depending on the level of quality of their product.  Rice is the main staple food crop in India. It gives food to 65% of the populace in India, each Indian devours rice in the day-by-day meal and additionally Rice is a food grain consumed by 70% of the world population.

Paddy is the raw form of rice; it cannot be consumed directly by humans; it must be prepared to obtain rice from paddy. Rice milling is essentially the cycle that aids in the removal of bodies and wheat from paddy grains in order to deliver clean rice. If you live in a heavily paddy-producing area, you can set up your own rice mill plant.

Market Potential of Rice Mill Plant

Rice is a profoundly consumable food in India; India is having the biggest market for bundled rice portions.

The raw material from the rice plant is rice wheat which has an extraordinary interest as raw material for dissolvable extraction plants.

India is the driving nation for rice creation and fare, basmati rice is the kind of rice which is having an extraordinary interest on an unfamiliar nation, India has sent out 38 00000 metric tons of basmati rice; to the United Arab Emirates, Saudi Arabia, Kuwait, Iran, and Iraq are a significant fare objective for rice.

In the event that you are searching for a productive business, at that point the rice plant is the most ideal choice for you, here in this article you will get the definite examination and marketable strategy for the mini rice factory plant.

The Benefits of Starting a Rice Mill Business

There are many benefits to starting a mini rice mill. Mini mills are energy-efficient, easy to operate, and can produce a high-quality rice product. They are also versatile and can be used to produce a variety of rice products, such as white rice, brown rice, and jasmine rice. Mini mills can also be used to process other grains, such as barley and oats.

Licenses and Permits for the Rice Milling Business

You will need licenses and permits from your state government authority to start a Rice Mill Plant.

first Register your business with R.O.C.

After R.O.C, the next important registration will be Udyog Aadhaar Registration and MSME Registration.  apply for a factory license to start rice mill production. Apply for ‘consent to operate and ‘consent to establish from the Pollution Control Board.

In accordance with the Rice-Milling Industry (Regulation) Act of 1958, apply for a licence.

rice mill plant is categorized in the food industry; therefore, you need to apply for F.S.S.A.I license and obtain a G.S.T number which is compulsory for every business after the G.S.T rule is applied.

Investment for Rice Mill Plant

If you want to start this business from a small level, then you can start this business in just 3 lakh 50 thousand rupees, if you do not have that much money, then you will apply for loan from under the P.m.e.g Program for your business.  Can be found from  The cost of this business is 3 lakh, which is spent on your place and machinery, while the remaining 50 thousand is spent on your maintenance, which includes electricity bills and staff expenses. And by adding raw materials and other expenses in this, you spend with your own capital. If you do this business on a large scale, then your cost will increase by the business size.

Location Selection For Business

The choice of location It is very important for your business that your mill should be close to the area where rice is produced. the location should have enough space for machinery, production unit, space for drying the rice and raw storage for the material.

You can start the rice mill business at 1000 square feet area, make sure that the location is easily accessible and the raw material supplies are near to the location,

While choosing an area to guarantee that your area has water supply, waste office and power supplies.

Raw Material for Mill Business

The essential raw material for the rice mill plant is Paddy (raw type of rice crop), the nature of the rice relies upon the rice crop so you need to be mindful while choosing raw material.

The rice is developed from the farmer so it is gainful to get raw material straightforwardly from a farmer with a sensible price it will set aside your cash.

Keep up creation all year you need to keep up the raw material supplies, in this manner raw material source is truly significant.

You need to discover the farmer or an individual who needs your administration of a rice mill where they can isolate husk and cushioning and get rice.

Machinery for Rice Milling Business

As indicated by the size of the rice mill preparing plant, there is the distinctive sort of machinery accessible on the lookout; you need to pick the correct machinery for your rice mill plant.

List of Machinery required for Rice Mill Plant.

  1. Grading machine.

2. Grain dryer.

3. Lighting equipment.

4. Measure and packing machine.

5. Paddy husker machine.

6. Paddy separator machine.

7. Rice cleaning machine.

8. Rice colour sorter.

9. Rice de-stoner machine.

10. Rice milling detection machine.

11. Rice polishing machine and

12. Rice whitener machine.

Manufacturing Process of Rice

The following is the process to prepare rice.

Pre-cleaning – In this step every impurity available in the paddy is cleaned and the spoiled grains are removed from it.

De-stoning – In this process, existing small stones are separated from the paddy and it is prepared for the next process.

Parboiling – It helps in improving nutritional and quality by gelatinization of starch inside rice grains.  This also improves milling recovery.

Husking – In this process, the husk is separated from the rice.

Husk aspiration – Now in this process husk is separated from brown rice or unhooked paddy.

Paddy Separation – Now here rice is separated from unhooked paddy.

Whitening – Now here in this process the layer of brown rice and part of the germs are separated.

Polishing – Now 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 small pieces of rice are separated and one quality rice is collected.

Packaging – This is the last step in which rice is weighed and packets are prepared in different quantities. Now, this rice is ready to reach the customer, which you can reach different vendors in the market.

Marketing Your Rice Business

When you did with the creation of the fundamental and significant undertaking is the Marketing and advancement of the business which is the most testing task in each business.

You can sell your rice mill item to the nearby market.

Likewise, you can take help from the retailer to advance your rice mill business brand in your neighbourhood.

You can offer the item to the distributor in a mass amount. And likewise sell in the Online market. B2B Websites:

Register your Rice mill Plant business on B2B sites like Alibaba, Indiamart and more sites.


The rice processing business benefit will come when you have set up the successful administration and afterwards target both low and top-level salary workers by making items that oblige all. Sometimes you’ll require an ideal opportunity to start to see the consequence of your persistent effort.

How to Start Mini Rice Mill Business

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