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

by Muhit Gupta 14 Aug 2025

1. Introduction

Starting a mini rice mill can be a great way to earn income, especially if you live in a farming area where rice is widely grown. It doesn’t take a huge investment or a big space to get started, which makes it a good option for small business owners or first-time entrepreneurs. But before jumping in, it’s important to understand what machines you’ll need and how much everything might cost. 

This guide breaks down the basic equipment required to run a mini rice mill, how the process works, and what kind of budget you should plan for. Whether you're planning to mill your own rice or offer milling services to others, this simple overview will help you take the first steps with confidence.

2. What Is a Mini Rice Mill?

A mini rice mill is a small machine setup used to process raw paddy into finished rice. It removes husk, cleans, and polishes the rice. These mills are compact, cost-effective, and ideal for small farmers or businesses. They usually handle 300–1000 kg of rice per hour and are easy to install and operate.

3. Basic Steps in the Rice Milling Process

  • Cleaning – Removes dust, stones, and other unwanted materials from the paddy.

  • Dehusking – Takes off the outer husk layer from the paddy to get brown rice.

  • Paddy Separation – Separates unhusked paddy from the brown rice.

  • Whitening/Polishing – Removes the bran layer to make white rice.

  • Grading – Sorts rice by size and quality.

  • Packing – Final rice is packed for sale or storage.

4. Essential Equipment Needed

  • Paddy Cleaner – Removes dust, stones, and other impurities.

  • Dehusker – Separates the husk from the paddy to get brown rice.

  • Paddy Separator – Splits unhusked paddy from brown rice.

  • Rice Whitener/Polisher – Turns brown rice into white rice by removing the bran layer.

  • Grader – Sorts rice by size and quality.

  • Elevators/Conveyors – Moves rice between machines.

  • Control Panel – Operates and manages the machines.

  • Dust Collector – Keeps the area clean by removing leftover husk and dust.

5. Estimated Cost to Set Up a Mini Rice Mill

The total cost to set up a mini rice mill depends on the size and type of machines you choose. Here's a simple breakdown:

  • Basic Machinery: ₹2 to ₹5 lakhs

  • Optional Equipment: ₹1 to ₹3 lakhs (if needed)

  • Installation & Setup: ₹50,000 to ₹1 lakh

  • Building/Shed (if not available): ₹1 to ₹2 lakhs

  • Electricity & Wiring: ₹30,000 to ₹50,000

  • Licensing & Registration: ₹10,000 to ₹25,000

Total estimated cost: Around ₹4 to ₹10 lakhs, depending on your setup.

6. Conclusion

Setting up a mini rice mill is a smart way to start a small business, especially in farming areas. With the right equipment, a good location, and a clear budget, you can begin milling rice on a small scale and grow over time. Start simple, manage costs, and focus on quality to build a successful rice milling business.

FAQ

1. How much space is needed to set up a mini rice mill?
You typically need 800 to 1,200 sq. ft. of covered space for basic equipment, storage, and safe operation. More space may be needed if you plan to expand later.

2. Can I run a mini rice mill with single-phase power?
Most mini mills need a 3-phase power supply for running multiple machines smoothly. However, small setups with fewer machines may run on a single-phase with proper adjustments.

3. Is government support or subsidy available for mini rice mills in India?
Yes, various state and central government schemes offer subsidies or loans under MSME or agriculture support programs. Check with local authorities or agriculture departments.

4. How much rice can a mini mill process in a day?
Depending on machine capacity, a mini rice mill can process 1 to 3 tons per hour, meaning 8–24 tons per day if run for 8 hours.

5. Where can I buy reliable equipment for a mini rice mill?
You can find quality machines and spare parts at trusted online platforms like ricemillkkart.com, which offers a wide range of rice milling equipment for small and medium setups.

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