Mini Rice Mill

Uploaded on : May 2010

Product and its applications

Rice is the kernel part of paddy and is obtained by removal of the paddy husk and thin layer of bran. Rice milling is the process of removal of these and then polishing it. The whole process has to be accomplished with care to avoid breakage of rice and improve recovery. The rice again is available in the husk, market in two varieties- Raw and parboiled. The raw rice is obtained by simply milling the raw paddy, while parboiled variety is the one in which the paddy is first partly boiled and dried before milling. Par boiled rice is preferred in some parts of the country such as Assam, West Bengal, Orissa, some parts of Bihar etc. The process of milling for both is same except the boiling part of paddy. The milling process provides whole rice as the main product and Husk, Bran and Broken rice as Bye products. Husk is sold in the market as a fuel, Bran for extraction of Oil and broken rice is consumed as a cheaper variety of rice.

Industry Profile and Market Assessment

Rice is a staple food in most parts of the country particularly in South, East and North Eastern States. It is also consumed on regular basis in Kashmir and not so regularly in the Northern states of Punjab, Haryana and some parts of Uttar Pradesh. The demand for any food product is always there particularly if it is a regular diet item like Rice or wheat. It is an essential for survival. It is consumed by all the members of the population may be either in fine costly variety by rich or the coarse cheap variety by the poor. The demand for rice will always be there so long the humanity survives.

Manufacturing Process & Know How

The process of rice milling for retrieval of rice kernel is an age old one. Even today in villages' rice is de-husked from paddy manually by women using wooden bars and wooden vessels. The paddy is constantly subjected to slow soft hammering for removing the husk sheath and then the fine bran layer is removed. The modern rice mill converts this manual process into a mechanized one using mechanical devices.

The process comprises cleaning of the paddy to remove stones, dust, chaff etc. The cleaned lot is fed into the de-husker machine where with the help of rubber rollers husk is separated. The Brown rice so obtained is then taken to huller where polishing is done by mild friction created within the polishing chamber. The resulting polished rice and bran are separated and collected. Recovery of edible rice is around 80%. Bye products constitute about 15%whereas balance 5% is waste and process loss.

Know how is available with Central Food Technology Research Institute Mysore. The machinery is all indigenously available.

The production capacity envisaged is 600 tonnes of Rice per year.

Plant and Machinery

The main plant and machinery required comprise

  • De- husking machine with rubber rollers
  • Polishing machines
  • Huller
  • Others.

The total cost of machinery is estimated to be Rs.2.30 lakhs. The unit will also require miscellaneous assets such as furniture, fixtures, storage facilities etc. the total cost of these is estimated to be Rs. 50,000/-.

Raw material and Components

The basic raw material for the unit is paddy which is locally available. The total requirement of paddy for an output of 600 tonnes will be 750 tonnes at recovery rate of 80%. The total cost of raw material and components is estimated to be about Rs. 40.50 lakhs per annum at 60% capacity in 1st year the cost works out to Rs24.30 lakhs.

Land and Building

For smooth operation of the unit, it will require a land of 200 sq. mts, with a built up area of 80 sq. mts. The total cost of building shall be Rs. 2.10 lakhs. And cost of land will be Rs. 0.60 lakhs.


For smooth functioning of the unit the requirement of man power is expected to be around 8 persons.

Technical staff self  
Skilled & Semi skilled workers 4
Helpers 4
The annual salary bill is estimated to be around Rs.1.37 lakhs

Sales Revenue: (100% capacity)



Selling Price Rs./Tonne

SalesRs. lakhs

Rice 480 11,000 52.80
Husk/Bran 90 3,000 2.70
Total     55.50

Selling price varies depending on quality and product mix, Average has been taken. Similarly price of Husk and Bran has been taken at Rs.3000/- per ton.

Cost of Project

Land & Building 2.70 (Rs. lakhs)
Plant & Machinery 2.30
Other assets 0.50
Contingencies & pre-expenses 0.90
Margin money 1.60
Margin money 1.80
Total 8.00

Means of Finance

Promoters Contribution 2.40 (Rs. lakhs)
Term Loan 5.60
Total 8.00



33.30 (Rs. lakhs)

Raw material 24.30
Salary 1.37
Utilities 0.36
Stores & Spares 0.18
Repairs & Maintenance 0.21
Selling expenses 3.33
Administrative expenses 0.30
Depreciation 0.71
Interest on T.L 0.60
Interest on W.C 0.53
Cost of production 1.96
Profit 1.41

Requirement of Working Capital




Margin Money

Raw material 15 days 30% 1.13 0.11
Stock of finished goods 15 days 25% 2.33 0.23
Working expenses 1 month 100% 0.44 0.44
Sale on credit 1 month 25% 1.30 0.13
Margin money for W.C       0.97

Break Even point


Machinery Suppliers

  • M/S Bhullar Rice Machinery manufacturing Co., 98, Focal Point, Amritsar-143001.
  • M/s Flourtech Engg. PVT. Ltd.16/5 Mathura Road. Faridabad.
  • M/S Fowler Westrup India P.Ltd. 249.Bommasandra Industrial Estate, Bangaluru.
  • M/S Indopol Food Processiung Machinery P. Ltd. 28, Sector 27-c Faridabad.

Contact for more information

Information Manager
TIMEIS Project