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How To Start Rice Mill Industry in India - Manufacturing Business

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What is Rice Manufacturing Plant?

As the highest source of nourishment for over half the world's population, rice is by far one of the most essential commercial food crops. Its yearly yield worldwide is approximately 535 million tons. Fifty countries yield rice, with China and India they are supportive 50% of total production. Southeast Asian countries independently support an annual production rate of 9-23 million metric tons of which they export very little. Collectively, they are categorizing the Rice Bowl. Over 300 million acres of Asian land is cast-off for growing rice. Rice production is so main essential to Asian cultures that oftentimes the word for rice in a specific Asian language also means food itself.

Rice is a fellow of the grass family (Gramineae). Grasses occur worldwide in a diversity of habitats. They are dominant species in such ecosystems as pampas and steppes, and they are an important source of forage for herbivorous animals. Many grass species are also primary farming crops for humans. As well as rice, they contain maize, wheat, sorghum, barley, oats, and sugar cane.

Normally, grass species are annual plants or are herbaceous perennials that terminate back to the ground at the end of the growing season and then recommence the next season by shoots developing from underground root systems. Shoots generally are characterized by swollen nodes or bases. Leaves are extensive and narrow, varying in width from 0.28-0.79 in (7-20 mm). Flowers are small and are called florets. Grasses pollinate by using the wind to broadly and opportunistically disperse grass pollen. The fruits are identified as a caryopsis or grain, are one-seeded, and can have a large concentration of starch.

  • As Rice is highly consumable food in India; India is having the largest market for the packaged rice segment.
  • The raw substantial from the rice mill plant is rice bran which having great demand as raw material for solvent taking out the plant.
  • India is leading country for rice production and export, basmati rice is the type of the rice which is having a great demand on a foreign country, India has export 38, 00,000 MT of basmati rice. United Arab Emirates, Saudi Arabia, Kuwait, Iran, and Iraq are a major export destination for rice.
  • If you are looking for a profitable business then the rice mill plant is the best option for you, here in this article you will get the detailed study and business plan for the rice mill plant.

How is Rice Manufacturing performed in India?

 

 

1) Preparation: Proceeding to planting, minimal soil manipulation is needed to prepare for cultivation. If the rice will be grown up on a hilly terrain, the area must be razed into terraces. Paddies are razed and surrounded by dikes or levees with the aide of earth-moving equipment then, the fields are plowed before planting. Suitable irrigation of the terrace or river delta bed is mandatory and accomplished by leveling and by controlling water with pumps, reservoirs, ditches, and streams.

 

2) Planting: Rice seeds are drenched prior to planting. Provisional to the level of mechanization and the size of the planting, seeding happens in three ways. In many Asian countries that haven't industrialized their farming practices, seeds are sown by hand. After 30-50 days of growth, the seedlings are transplanted in groups from nursery beds to flooded paddies. Seeds can also be sown by means of a machine called a drill that places the seed in the ground. Larger enterprises often originate in the United States sow rice seed by airplane. Low-flying planes distribute seed onto already flooded fields. An average supply is 90-100 lb per acre (101-111 kg per hectare), generating roughly 15-30 seedlings per square foot.

 

3) Harvesting: Once the plants have touched full growth (nearly three months after planting) and the grains begin to ripen—the tops begin to droop and the stem yellows—the water is drained from the fields. As the fields dry, the grains ripen further and harvesting is commenced. Depending on the size of the setup and the amount of mechanization, rice is also harvested by hand or machine. Through hand, rice stalks are changed by sharp knives or sickles. This exercise still occurs in many Asian countries. Rice can also be harvested by a mechanized hand harvester or by a tractor/horse-drawn machine that chops and stacks the rice stalks. If the rice has been harvested by hand or by a semi-automated process, threshing is finished by flailing the stalks by hand or by using a mechanized thresher.

 

4) Drying: Earlier milling, rice grains must be dried in instruction to decrease the moisture content to between 18-22%. This is done with affectedly heated air or, more often, with the help of naturally arising sunshine. Rice grains are left on racks in fields to waterless out naturally. Once dried, the rice grain, now called rough rice, is ready for processing

 

5) Hulling: Hulling can be completed by hand by rolling or grinding the rough rice between stones. Though, more often it is processed at a mill with the assistance of automated processes. The rough rice is first cleaned by passing through an amount of sieves that sift out the debris. Blown air removes top matter. Once clean, the rice is hulled by a machine that mimics the action of the handheld stones. The shelling machine loosens the hulls from the rice by rolling them between two sheets of metal coated with abrasives. 80-90% of the kernel hulls are removed during this process.
From the shelling machine, the grains and hulls are carried to a stone reel that aspirates the waste hulls and moves the kernels to a machine that separates the hulled from the unhulled grains. By shaking the kernels, the paddy machine services are the heavier unhulled grains to one side of the machine, while the lighter weight rice drops to the other end. The unhulled grains are then siphoned to additional batch of shelling machines to complete the hulling process. Hulled rice grains are known as brown rice

 

6) Milling: Since it retains the outer bran coatings of the rice grain, brown rice needs no other processing. However, along with extra vitamins and minerals, the bran layers also contain oil that makes brown rice spoil faster than milled white rice. That is one of the reasons why brown rice is milled further to create more visually appealing white rice.

 

  • The brown rice runs through two huller machines that eliminate the outer bran layers from the grain. With the grains pressed in contradiction of the inner wall of the huller and a spinning core, the bran layers are rubbed off. The core and inner wall move closer for the second hulling, ensuring the elimination of all bran layers.
  • The now light-colored grain is cooled and refined by a brush machine.
  • The smooth white rice is conveyed to a brewer's reel, where over a wire mesh screen broken kernels are sifted out. Frequent times, the refined white rice is then coated with glucose to increase luster.

7) Enriching: The milling method that produces white rice also removes much of the vitamins and minerals found primarily in the outer bran layers. Further handling is often done in order to bring back the nutrients to the grain. Once complete, the rice is called converted rice.
White rice is transformed in one of two ways. Prior to milling, the rice is steeped under pressure in order to transfer all the vitamins and minerals from the bran layers to the kernel itself. After done, the rice is steamed, dried, and then milled. Rice that has already been milled can be covered in a vitamin and mineral bath that coats the grains. When soaked, they are dried out and mixed with unconverted rice.

 

Licenses Required for Rice mill Plant Business

To start Rice Mill Plant, one needs licenses and permit from your state government authority.

 

Step 1: Register a Company

Let’s try and understand the types of business entity structure available in India. Below is the list of some of them:

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One Person Company (OPC)

If you want to have full control over your business with limited liabilities, then OPC is the best choice to start with. But ensure that you convert your business structure (within six months) to the private limited company after crossi.

    
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Limited Liability Partnership (LLP)

If you don’t want to take responsibility or liability for another partner's misconduct, incompetence or negligence and also want to limit your liabilities for the debt and losses. If you want to enjoy tax benefits, then LLP might.

 
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Private Limited Company (PLC)

It’s the most renowned legal structure for business. The financial liability of the shareholders is limited to the their shares in case of any defaults, bankruptcy and/or any suits or recovery by banks/creditors. This simply means

 
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Public Limited Company (PLC)

A public limited business structure is great for long run but has more regulatory requirements. Apart from all the advantages of private limited company, It has the ability to have any number of members, ease in transfe

 

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Step2: Udyog Aadhaar MSME Registrations:

Micro Small and Medium Enterprises are classified into three different types, which are mentioned below:

  • Micro Enterprises – In case  a business sets 25 lacs rupees in a specific business in the manufacturing sector comes under Micro Enterprises.
  • Small Enterprises – Such industries are identify incase the investment is more than 25 lakhs and below 5 crores comes under the manufacturing sector also incase the industry spends more than 10 lakhs and less than 2 crores under the services sector comes under Small Enterprises.
  • Medium Enterprises – Such industries has investment more than 5 crores and below 10 crores falls under the manufacturing sector and in case of more than 2 crores and less than 5 crores under trade type services sector comes under Small Enterprises. Learn More

 

Types of Industries

Total Investment (Manufacturing)

Total Investment (Services)

Micro Enterprises

Below 25 lakhs

Below 10 lakhs

Small Enterprises

Above 25 lakhs and below 5 crores 

Above 10 lakhs and below  2 crores

Medium Enterprises

Above 5 crores and below 10 crores 

Above 2 crores and below 5 crores

 

Step 3 - Factory License: 

Transfer/handover of goods and services from one entity or person to another in exchange for money is known as Trade. Manufacturing of a product in a prescribed manner is called manufacturing.

  • An individual/group who are planning to start a new business needs to get the Factory/Trade License.
  • Factory/Trade license is to regulate specific laws of business for a particular area or locality. It is designed to ensure that the citizens are not badly affected by Health Hazard & Nuisance by the improper carrying of a manufacturing/trade and also to check whether the business is being carried on is according to the laws, rules, standards and safety guidelines or not
  • The regulations of factory/trade license are laid down by the State government to monitor, check and regulate the trade within a city.
  • Factory/Trade license is issued by the municipal corporation of the state where business is located.
  • A factory/trade license authorized individual/business to carry on trade or business at the premises for which it has been issued.

 

Step 4 - NOC from pollution department:

Apply for ‘consent to operate’ and ‘consent to establish’ from the Pollution Control Board Acts 1958: Apply for the Rice-Milling Industry (Regulation) Act, 1958.

 

Step 5 - PFA and ESIC Registration:

If your rice mill plant has employees then you need to get PFA and ESIC registration for the employees according to labor law.

 

Step 6 - FSSAI License:

Rice mill plant is categorized in the food industry; therefore, you need to apply for FSSAI license (Food Safety and Standard Authority of India) one of the necessary condition after registering business entity is to obtain Government License / Permits. In case you are into food industry e.g hawker, itinerant vendor, temporary stall holder; food distributor in any religious or social gathering events except a caterer, or by any way related to manufacturing, transportation, storage or distribution of food product or tiny food business, one must obtain an FSSAI Registration or FSSAI License before starting operations.

 

Step 7 - GST Registration:

Obtain GST number which is compulsory for every business after GST rule is applied. Making it very easy to do business in India and make interstate sales without restrictions

  • Limited compliance
  • Higher exemptions for new businesses under composition scheme
  • Less tax liability
  • Financial Inclusion in the long run
  • Boost country economy thereby increasing opportunities for startups

 

List of “Equipment and Raw Material required” for Rice Mill Plant.

  • The basic raw substantial for rice mill plant is Paddy (raw form of rice crop), the quality of the rice depends on the rice crop so you have to conscious while selecting raw material.
  • The rice is cultivated from the farmer so it is helpful to get raw material directly from a farmer with a reasonable price it will save your money.
  • Maintain production all year you have to preserve the raw material supplies, therefore raw material source is really important.
  • One need to find the farmer or a person who wants your service of rice mill where they can separate husk and padding and get rice.

 

Machinery

According to the size of the rice mill processing plant, there are different type of machinery available in the market; you need to choose the right machinery for your rice mill plant.

The important factor is cone slider while selecting the machinery are production rate, efficiency, capacity, and power equipment; also consider the execution, whether the machine is a single stage or multi-stage.

  • Grading machine
  • Grain dryer
  • Lighting equipment
  • Measure and packing machine
  • Paddy husker machine
  • Paddy separator machine:
  • Rice cleaning machine
  • Rice color sorter
  • Rice de-stoner machine
  • Rice milling detection machine
  • Rice polishing machine
  • Rice whitener machine

Process of Exporting Rice from India

Below steps are important for starting rice export business in India

 

Step 1 - IEC Registrations:

If you are planning to export your rice then it is mandatory to obtain the IEC code. Import/export code (IEC) as the name suggests, is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) to carry out the import of goods/services in India and export of goods/services from India.

  • Getting an IEC code is the first step to start trading internationally.
  • IE code has lifetime validity.
  • Exporters cannot get the benefit of exports from DGFT, Customs, Export Promotion Council without IE code.
  • IE code is also mandatory to pay and receive international financial transactions. In short, one cannot legally trade in the international market without IE code.

 

Step 2 - Register a Company Abroad ( Be an MNC) 

Select your objective country where you will export your rice. It is mandatory that you should find your potential buyers in the top 30 countries which are listed above. Get Started with Company Registration.

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UK (United Kingdom) Business Incorporation

This is important to have a place in United Kingdom (UK) to give the global presence of your company. High demand for property and its price is increasing day by day due to an attractive place to get the presence in globe market.

    
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USA (United States of America) Business Incorporation

Form INC or LLC - EIN, Registered Agent, Bank Account & Debit Card in Just 30 days for Non-USA Residents.At Corpseed, we are committed to offer our services to the entrepreneurs and businesses as a very cost-effective proposition

 
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Canada Business Incorporation from India

As mostly people would do the research and incorporate in the Province of Alberta, Ontario, British Columbia. However, in the Province of Alberta, Ontario the rule of Canadian citizenship or permanent residency applie

 
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UAE (United Arab Emirates) Business Incorporation

Incorporation procedure in UAE (United Arab Emirates) is a simple step by step process and it does not require infinite visits to a lawyer at every stage of company formation. The procedures for incorporation in UAE (United Arab Emirate

 

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Step 3 - Find Buyers

It is a supreme important part of any export business that how to find potential buyers in the international market? Some guidelines for discovering potential buyers are through communicating your relatives in that country, export trade fairs and expos, through online portal like Alibaba and Indiamart, social media advertising, promotion of your website, etc.

Conclusion

One supposed to have a good idea about the country to which rice is to be exported. It is always recommended to find the target market that is less competitive. In further words, you can opt the importing country where there is an enormous demand for the rice but less supply from any of the other competitor countries like China, Myanmar, Japan, etc.

BOOK A FREE CONSULTATION

Get help from an experienced legal adviser. Schedule your consultation at a time that works for you and it's absolutely FREE.

Author
Vinay Singh
Vinay Thakur is Managing Partner in Corpseed. He focused on payments, digital transformation, and financial technology for over 15 years and holds strong expertise on fintech startups, banking innovation, and investors with a keen understanding of the trends and activities of startups, banks, and investors in the space.