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How to Set Up a Mini Rice Mill: Equipment & Costs

How to Set Up a Mini Rice Mill: Equipment & Costs

Setting up a mini rice mill is an excellent business opportunity for entrepreneurs looking to enter the agri-processing sector with low investment and steady returns. With rising demand for processed rice and government support for rural industries, a small rice mill setup can be both profitable and sustainable.

How to Set Up a Mini Rice Mill


This guide explains how to set up a mini rice mill, covering equipment requirements, setup cost, production capacity, power consumption, and profitability, along with expert insights from Hindustan Group.

What Is a Mini Rice Mill?

A mini rice mill plant is a compact paddy processing unit designed to convert raw or parboiled paddy into finished rice. It is ideal for:

  • Rural and semi-urban areas
  • Small entrepreneurs and farmers
  • Low to medium production volumes

Compared to large rice mills, a mini rice mill requires less space, lower capital investment, and fewer operators.

Why Invest in a Mini Rice Mill Business?

A mini rice mill project offers multiple advantages:

  • Low initial investment
  • High local demand for rice
  • Easy availability of raw material (paddy)
  • Lower labour requirement
  • Faster return on investment (ROI)

With proper planning, a mini rice mill business plan can generate consistent income throughout the year.

Step-by-Step Guide: How to Set Up a Mini Rice Mill

Step 1: Location & Space Requirement

  • Required area: 800–1,200 sq. ft.
  • Easy access to paddy suppliers
  • Availability of electricity and water
  • Proper ventilation and storage space

Step 2: Understanding the Rice Milling Process

The standard rice milling process steps include:

  1. Paddy cleaning
  2. Dehusking (hulling)
  3. Paddy separation
  4. Rice polishing / whitening
  5. Grading
  6. Packing

Both raw rice milling process and parboiled rice milling process can be handled with suitable machinery.

Mini Rice Mill Equipment List

Below is the essential mini rice mill equipment required for efficient operation:

Core Machines

  • Paddy Cleaner
  • Rice Huller Machine
  • Rice Rubber Roller (critical for dehusking)
  • Rice Polisher Machine
  • Rice Whitening Machine
  • Rice Grader
  • Elevator & Conveyor Systems
  • Packing Machine

Supporting equipment

  • Control panel
  • Dust collection system
  • Electrical wiring

Role of Rice Rubber Rollers in Mini Rice Mills

The rice rubber roller is the heart of the dehusking process. High-quality rollers:

  • Reduce broken rice
  • Improve yield and recovery
  • Lower power consumption
  • Extend machine life

Hindustan Group supplies:

Mini Rice Mill Setup Cost

Estimated Mini Rice Mill Cost in India:

ComponentApprox. Cost (INR)
Machinery₹6–10 lakh
Installation & Electrical₹1–2 lakh
Building & Civil Work₹1–3 lakh
Working Capital₹1–2 lakh

👉 Total Mini Rice Mill Investment: Approx ₹9–17 lakh

Costs vary based on capacity, automation level, and equipment quality.

Production Capacity & Power Consumption

  • Production capacity: 0.5–2 tonnes/hour
  • Power requirement: 15–25 HP
  • Electricity cost: Moderate and manageable

Efficient machinery and quality rollers help reduce rice mill power consumption.

Mini Rice Mill Profit & ROI

A well-managed mini rice mill offers:

  • Profit margin: 8–15% per tonne
  • ROI period: 1.5–3 years
  • Additional income from husk and bran sales

Factors affecting profit:

  • Paddy quality
  • Equipment efficiency
  • Labour management
  • Market demand

Labour & Maintenance Requirements

  • Labour required: 2–4 operators
  • Regular cleaning and lubrication
  • Periodic replacement of rubber rollers and polishing parts

Using quality components reduces rice mill maintenance cost significantly.

Mini Rice Mill vs Large Rice Mill

FeatureMini Rice MillLarge Rice Mill
InvestmentLowHigh
SpaceSmallLarge
LabourMinimalHigh
CapacityLimitedVery high
ROIFasterSlower

How Hindustan Group Helps You Set Up a Mini Rice Mill

Hindustan Group supports entrepreneurs with:

  • Reliable rice mill products
  • Durable rice rubber rollers and polishing wheels
  • Expert guidance on equipment selection
  • Long-term performance and technical support

Whether you are starting small or planning to expand, Hindustan Group ensures efficient, cost-effective, and sustainable rice milling operations.

Build a Scalable and Profitable Mini Rice Mill with Hindustan Group

Setting up a mini rice mill is a smart business decision for entrepreneurs seeking stable returns with manageable investment. By selecting the right mini rice mill machinery, understanding costs, and using high-quality components, you can build a profitable and scalable rice milling business.

By partnering with Hindustan Group, you gain access to reliable equipment, expert guidance, and durable rice milling solutions designed for long-term success.

👉 Start your mini rice mill journey today with Hindustan Group and build a profitable agro-processing business.

Explore the range of our Rice Whitener Stones by Hindustan Group

Rice Rubber Roller | 1121 Rolls | Par Boiled Paddy Rolls | Rice Polishing Wheel | Rice Rubber Polisher Brakes / Sticks | PF Resin

FAQs: Mini Rice Mill Setup

How much does it cost to set up a mini rice mill?

The setup cost ranges from Approx. ₹9–17 lakh, depending on machinery, capacity, and automation level.

What equipment is required for a mini rice mill?

Essential equipment includes paddy cleaner, rice huller, rice rubber roller, polisher, grader, elevators, and packing system.

Is a mini rice mill profitable?

Yes. With proper planning, a mini rice mill offers steady income and a good profit margin.

How much space is required for a mini rice mill?

Approximately 800–1,200 sq. ft. is sufficient.

Can a mini rice mill process parboiled rice?

Yes, with suitable parboiled paddy rolls and polishing systems.

How long does it take to recover the investment?

Most mini rice mills recover investment within 1.5–3 years.

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