Establishment of a rice milling company in India

In India, rice is grown on a large scale. Rice is one of its most important staple foods and more than 65% of its human population depends on rice for their daily food needs. Rice harvest occupies more than 37% of the total cultivation area in India and accounts for almost 44% of all food grains produced in the country.

An integral process of rice production is rice milling. And just like in any country where rice is produced on a large scale, rice milling has been around for a long time in India. The need for milling arises because paddy rice cannot be consumed in its raw form and requires proper processing.

Due to this huge global demand for rice, rice milling today is a fast growing agricultural business that you can successfully harness for financial gain. However, being a profitable business from a commercial point of view, setting up a rice mill requires extensive knowledge and capital.

If you can arrange the capital requirement, you should read on to learn how to establish a rice milling industry in India:

1. Decide on the type of rice milling: One-step, two-step or commercial: The one-step process is one in which the husk and bran layers are removed in one step. The two-step process does it separately; It requires traditional machinery and equipment and is made primarily for consumption within the local community. Commercial milling is an extensive process that requires the use of modern milling machinery. It is done mainly with a view to exporting the product. Unlike the two processes mentioned above, it involves several processes:

• Pre-cleaning

• Stoned

• Remove the peel

• Shell suction

• Rice removal

• Polished

• Whitening

• Classification and separation

• Mixture

• Fog polishing

• Weighing and bagging

• To stock

2. Acquire knowledge– Learn From The Experts – Before diving into the rice milling business, it is important that you look at the environment and understand the important facts about rice milling industry in your area. Learn the pitfalls and challenges involved, get a feel for the different processes involved. Basically, learn everything you can in the shortest amount of time.

3. Business plan currency: There are many factors at play and you cannot enter this competitive industry without a detailed strategy. Since you have already acquired the basic knowledge, now you need to put everything in a plan. Clearly mention your business purposes and objectives, p & l analysis, projected earnings, target market, staffing requirements, competition, etc. All things considered, check everything you need to get you started.

4. Obtain permits and licenses: To upgrade the rice milling company, you need to obtain certain licenses from the Government of India. You need:

• Register your business with the Business Registry

• Registration with Udyog Aadhaar MSME

• Factory license

• Obtain consent to establish and operate from Pollution control board

• Get licensed according to Rice Milling Industry Act of 1958

• VAT registration

ESIC and PFA registration must also be complied with for employees.

If you want to export, you also need to get the Import-Export Code

5. Acquire land: Put your hands in a suitable place that is easily accessible.

6. Purchase and installation of equipment: Some of the machines in use today are:

• Rice cleaner

• Rice deboner

• Rice husker

• Color

• Rice separator

• Rice whitener and polisher

• Rice sorter

• Dryer, etc.

Since it depends solely on your requirements and business scale, it is best to consult a rice milling expert. They will also help you set up the machinery.

The last step in starting a rice milling business is acquiring raw materials and starting production. Since it is important to maintain production throughout the year, it is important that you receive guaranteed supplies. You can:

• Start with your own rice crop

• Buying from vendors, i.e. farmers or farmers markets