Rice Mill Project Cost in India 2026-27: Full Breakdown & Setup Guide
Setting up a rice mill project in India is one of the most profitable agribusiness1 ventures, given the country’s position as one of the largest producers and consumers of rice. Understanding the rice mill project cost is essential for entrepreneurs, farmers, and investors who want to enter the rice processing industry. The total investment depends on several factors such as plant capacity, machinery type, location, automation level, and working capital needs.
In this guide, we will break down the detailed cost of setting up a rice mill in India, including machinery expenses from 1 ton to 10 tons, land requirements, and expected returns, to help you plan your project efficiently and profitably.
1 to 10 Ton Rice Milling Project Cost in India
Here is the detailed cost breakdown for a 1 to 10 Ton Rice Milling Project in India, including information on project cost, land and building requirements, installation, profit, and more.
1 Ton Rice Mill Project Cost (Updated 2026)
Setting up a 1 Ton Rice Mill Plant is a great opportunity for small-scale entrepreneurs who want to start rice processing with moderate investment and steady profit.
The total project cost depends on the type of rice processed — Raw, Steam, or Parboiled (Automatic).
Estimated Project Cost (Without Civil Work & Land)
| Category | Estimated Project Cost | Remarks |
|---|---|---|
| 1 TPH Raw Rice Mill | ₹40 – ₹50 Lakh | Suitable for basic paddy processing and local markets. |
| 1 TON Steam Rice Mill | ₹80 – ₹90 Lakh | Includes boiler and steam dryer for higher yield and better rice quality. |
| 1 TON Parboiled (Automatic) | ₹1 Crore & Above | Fully automatic setup with modern parboiling and drying system for commercial-scale operations. |
Machinery Used in 1 Ton Rice Mill Setup
| Machinery / Equipment | Raw Rice Mill | Steam Rice Mill | Parboiled (Automatic) |
|---|---|---|---|
| Paddy Cleaner / Pre-Cleaner | ✅ | ✅ | ✅ |
| Destoner Machine | ✅ | ✅ | ✅ |
| Rubber Roll Sheller (Husker) | ✅ | ✅ | ✅ |
| Paddy Separator | ✅ | ✅ | ✅ |
| Rice Whitener / Polisher | ✅ | ✅ | ✅ |
| Rice Grader / Sizer | ✅ | ✅ | ✅ |
| Elevators & Conveyors | ✅ | ✅ | ✅ |
| Blower System | ✅ | ✅ | ✅ |
| Electrical Control Panel | ✅ | ✅ | ✅ |
| Steam Boiler | ❌ | ✅ | ✅ |
| Steam Dryer / Heat Exchanger | ❌ | ✅ | ✅ |
| Water Soaking Tanks | ❌ | ✅ | ✅ |
| Parboiling Unit (Automatic) | ❌ | ❌ | ✅ |
| Pressure Vessel / Steam Chamber | ❌ | ❌ | ✅ |
| Paddy Dryer (Automatic Continuous Type) | ❌ | ❌ | ✅ |
| Color Sorter (Optional) | ❌ | ❌ | ✅ |
| Grading & Packing Machine | ✅ | ✅ | ✅ |
💡 Additional Notes
- All costs are approximate estimates and may vary depending on machine brand, automation level, and customization.
- Land, civil work, and electrical setup costs are excluded.
- Ideal for processing around 25–30 tons per month, depending on working hours and machinery efficiency.
2 Ton Rice Mill Project Cost (Updated 2026)
Setting up a 2 Ton Rice Mill Plant is ideal for medium-scale rice millers who want to increase production capacity and improve rice quality with efficient machinery.
This setup can handle higher output with advanced systems and better yield.
The total project cost depends on the type of rice processing system — Raw, Steam, or Parboiled (Automatic).
Estimated Project Cost (Without Civil Work & Land)
| Category | Estimated Project Cost | Remarks |
|---|---|---|
| Raw Rice Mill | ₹80 – ₹90 Lakh | Suitable for medium-scale production with standard equipment. |
| Steam Rice Mill | ₹1 Crore – ₹1.20 Crore | Includes boiler and steam dryer for higher yield and better rice quality. |
| Parboiled (Automatic) | ₹1.50 Crore (Approx.) | Fully automatic setup with modern parboiling and continuous drying systems. |
Machinery Used in 2 Ton Rice Mill Setup
| Machinery / Equipment | Raw Rice Mill | Steam Rice Mill | Parboiled (Automatic) |
|---|---|---|---|
| Paddy Cleaner / Pre-Cleaner | ✅ | ✅ | ✅ |
| Destoner Machine | ✅ | ✅ | ✅ |
| Rubber Roll Sheller (Husker) | ✅ | ✅ | ✅ |
| Paddy Separator | ✅ | ✅ | ✅ |
| Rice Whitener / Polisher | ✅ | ✅ | ✅ |
| Rice Grader / Sizer | ✅ | ✅ | ✅ |
| Elevators & Conveyors | ✅ | ✅ | ✅ |
| Blower System | ✅ | ✅ | ✅ |
| Electrical Control Panel | ✅ | ✅ | ✅ |
| Steam Boiler | ❌ | ✅ | ✅ |
| Steam Dryer / Heat Exchanger | ❌ | ✅ | ✅ |
| Water Soaking Tanks | ❌ | ✅ | ✅ |
| Parboiling Unit (Automatic) | ❌ | ❌ | ✅ |
| Pressure Vessel / Steam Chamber | ❌ | ❌ | ✅ |
| Paddy Dryer (Automatic Continuous Type) | ❌ | ❌ | ✅ |
| Color Sorter (Optional) | ❌ | ❌ | ✅ |
| Grading & Packing Machine | ✅ | ✅ | ✅ |
💡 Additional Notes
- All costs are approximate and may vary depending on machine brand, plant design, and automation level.
- Civil work, land cost, and electrical setup are excluded from these estimates.
- The plant can process 50–60 tons of rice per month, depending on working hours and efficiency.
- Best suitable for entrepreneurs and millers planning to expand from small to medium-scale rice production.
3 Ton Rice Mill Project Cost (Updated 2026)
Setting up a 3 Ton Rice Mill Plant is ideal for medium-to-large scale operations.
This capacity ensures higher output, better efficiency, and improved rice quality.
The total project cost depends on the type of rice processing system — Raw, Steam, or Parboiled (Automatic).
Estimated Project Cost (Without Civil Work & Land)
| Category | Estimated Project Cost | Remarks |
|---|---|---|
| Raw Rice Mill | ₹1 Crore & Above | Suitable for medium-scale production with standard equipment. |
| Steam Rice Mill | ₹1.50 Crore | Includes boiler and steam dryer for improved yield and better rice quality. |
| Parboiled (Automatic) | Approx. ₹2.50 Crore | Fully automatic setup with modern parboiling and continuous drying systems for commercial-scale production. |
Machinery Used in 3 Ton Rice Mill Setup
| Machinery / Equipment | Raw Rice Mill | Steam Rice Mill | Parboiled (Automatic) |
|---|---|---|---|
| Paddy Cleaner / Pre-Cleaner | ✅ | ✅ | ✅ |
| Destoner Machine | ✅ | ✅ | ✅ |
| Rubber Roll Sheller (Husker) | ✅ | ✅ | ✅ |
| Paddy Separator | ✅ | ✅ | ✅ |
| Rice Whitener / Polisher | ✅ | ✅ | ✅ |
| Rice Grader / Sizer | ✅ | ✅ | ✅ |
| Elevators & Conveyors | ✅ | ✅ | ✅ |
| Blower System | ✅ | ✅ | ✅ |
| Electrical Control Panel | ✅ | ✅ | ✅ |
| Steam Boiler | ❌ | ✅ | ✅ |
| Steam Dryer / Heat Exchanger | ❌ | ✅ | ✅ |
| Water Soaking Tanks | ❌ | ✅ | ✅ |
| Parboiling Unit (Automatic) | ❌ | ❌ | ✅ |
| Pressure Vessel / Steam Chamber | ❌ | ❌ | ✅ |
| Paddy Dryer (Automatic Continuous Type) | ❌ | ❌ | ✅ |
| Color Sorter (Optional) | ❌ | ❌ | ✅ |
| Grading & Packing Machine | ✅ | ✅ | ✅ |
💡 Additional Notes
- Costs are approximate estimates and may vary based on machine brand, automation, and customization.
- Civil work, land, and electrical setup are excluded.
- Plant can process 70–80 tons/month, depending on working hours.
- Ideal for medium-to-large scale entrepreneurs aiming for higher production and commercial markets.
4 Ton Rice Mill Project Cost (Updated 2026)
Setting up a 4 Ton Rice Mill Plant is ideal for large-scale operations.
This capacity ensures high production efficiency, improved rice quality, and supports commercial market supply.
The total project cost depends on the type of rice processing system — Raw, Steam, or Parboiled (Automatic).
Estimated Project Cost (Without Civil Work & Land)
| Category | Estimated Project Cost | Remarks |
|---|---|---|
| Raw Rice Mill | ₹2 Crore | Suitable for large-scale production with standard machinery. |
| Steam Rice Mill | Under ₹3 Crore | Includes boiler and steam dryer for higher yield and better rice quality. |
| Parboiled (Automatic) | Approx. ₹4 Crore | Fully automatic setup with modern parboiling and continuous drying systems for commercial production. |
Machinery Used in 4 Ton Rice Mill Setup
| Machinery / Equipment | Raw Rice Mill | Steam Rice Mill | Parboiled (Automatic) |
|---|---|---|---|
| Paddy Cleaner / Pre-Cleaner | ✅ | ✅ | ✅ |
| Destoner Machine | ✅ | ✅ | ✅ |
| Rubber Roll Sheller (Husker) | ✅ | ✅ | ✅ |
| Paddy Separator | ✅ | ✅ | ✅ |
| Rice Whitener / Polisher | ✅ | ✅ | ✅ |
| Rice Grader / Sizer | ✅ | ✅ | ✅ |
| Elevators & Conveyors | ✅ | ✅ | ✅ |
| Blower System | ✅ | ✅ | ✅ |
| Electrical Control Panel | ✅ | ✅ | ✅ |
| Steam Boiler | ❌ | ✅ | ✅ |
| Steam Dryer / Heat Exchanger | ❌ | ✅ | ✅ |
| Water Soaking Tanks | ❌ | ✅ | ✅ |
| Parboiling Unit (Automatic) | ❌ | ❌ | ✅ |
| Pressure Vessel / Steam Chamber | ❌ | ❌ | ✅ |
| Paddy Dryer (Automatic Continuous Type) | ❌ | ❌ | ✅ |
| Color Sorter (Optional) | ❌ | ❌ | ✅ |
| Grading & Packing Machine | ✅ | ✅ | ✅ |
Additional Notes
- Costs are approximate estimates and may vary depending on machine brand, automation, and customization.
- Civil work, land, and electrical setup are excluded.
- Plant can process 100–120 tons/month, depending on operating hours and efficiency.
- Ideal for large-scale commercial rice millers targeting premium markets.
5 Ton Rice Mill Project Cost (Updated 2026)
Setting up a 5 Ton Rice Mill Plant is ideal for large-scale commercial operations.
This capacity ensures high production efficiency, improved rice quality, and supports premium market supply.
The total project cost depends on the type of rice processing system — Raw, Steam, or Parboiled (Automatic).
Estimated Project Cost (Without Civil Work & Land)
| Category | Estimated Project Cost | Remarks |
|---|---|---|
| Raw Rice Mill | ₹3 Crore | Suitable for large-scale production with standard machinery. |
| Steam Rice Mill | ₹4 Crore | Includes boiler and steam dryer for better yield and improved rice quality. |
| Parboiled (Automatic) | Above ₹6 Crore | Fully automatic setup with modern parboiling and continuous drying systems for commercial-scale operations. |
Machinery Used in 5 Ton Rice Mill Setup
| Machinery / Equipment | Raw Rice Mill | Steam Rice Mill | Parboiled (Automatic) |
|---|---|---|---|
| Paddy Cleaner / Pre-Cleaner | ✅ | ✅ | ✅ |
| Destoner Machine | ✅ | ✅ | ✅ |
| Rubber Roll Sheller (Husker) | ✅ | ✅ | ✅ |
| Paddy Separator | ✅ | ✅ | ✅ |
| Rice Whitener / Polisher | ✅ | ✅ | ✅ |
| Rice Grader / Sizer | ✅ | ✅ | ✅ |
| Elevators & Conveyors | ✅ | ✅ | ✅ |
| Blower System | ✅ | ✅ | ✅ |
| Electrical Control Panel | ✅ | ✅ | ✅ |
| Steam Boiler | ❌ | ✅ | ✅ |
| Steam Dryer / Heat Exchanger | ❌ | ✅ | ✅ |
| Water Soaking Tanks | ❌ | ✅ | ✅ |
| Parboiling Unit (Automatic) | ❌ | ❌ | ✅ |
| Pressure Vessel / Steam Chamber | ❌ | ❌ | ✅ |
| Paddy Dryer (Automatic Continuous Type) | ❌ | ❌ | ✅ |
| Color Sorter (Optional) | ❌ | ❌ | ✅ |
| Grading & Packing Machine | ✅ | ✅ | ✅ |
💡 Additional Notes
- Costs are approximate estimates and may vary depending on machine brand, automation, and specifications.
- Civil work, land, and electrical setup are excluded.
- Plant can process 130–150 tons/month, depending on operation hours and efficiency.
- Ideal for commercial rice millers targeting high-volume production and premium markets.
6 Ton Rice Mill Project Cost (Updated 2026)
Capacity: 6 Ton Rice Mill – ideal for large-scale commercial operations.
Estimated Project Cost (Without Civil Work & Land)
| Category | Estimated Project Cost | Remarks |
|---|---|---|
| Raw Rice Mill | ₹3.50 Crore | Large-scale production with standard machinery. |
| Steam Rice Mill | ₹4.50 Crore | Includes boiler and steam dryer for improved yield. |
| Parboiled (Automatic) | Approx. ₹6.50 Crore | Fully automatic parboiling and drying system. |
7 Ton Rice Mill Project Cost (Updated 2026)
Capacity: 7 Ton Rice Mill – high-volume commercial production.
Estimated Project Cost (Without Civil Work & Land)
| Category | Estimated Project Cost | Remarks |
|---|---|---|
| Raw Rice Mill | ₹4 Crore | Standard large-scale setup. |
| Steam Rice Mill | ₹5 Crore | Steam system for better rice quality. |
| Parboiled (Automatic) | Approx. ₹7 Crore | Fully automated parboiling & continuous drying. |
8 Ton Rice Mill Project Cost (Updated 2026)
Capacity: 8 Ton Rice Mill – ideal for commercial rice milling enterprises.
Estimated Project Cost (Without Civil Work & Land)
| Category | Estimated Project Cost | Remarks |
|---|---|---|
| Raw Rice Mill | ₹4.50 Crore | Standard machinery for large-scale production. |
| Steam Rice Mill | ₹5.50 Crore | Boiler & steam dryer included. |
| Parboiled (Automatic) | Approx. ₹8 Crore | Automatic parboiling & drying plant. |
9 Ton Rice Mill Project Cost (Updated 2026)
Capacity: 9 Ton Rice Mill – very high-volume commercial production.
Estimated Project Cost (Without Civil Work & Land)
| Category | Estimated Project Cost | Remarks |
|---|---|---|
| Raw Rice Mill | ₹5 Crore | Large-scale raw rice processing. |
| Steam Rice Mill | ₹6 Crore | Includes boiler, steam dryer, and improved yield. |
| Parboiled (Automatic) | Approx. ₹9 Crore | Fully automatic parboiling and drying system. |
10 Ton Rice Mill Project Cost (Updated 2026)
Capacity: 10 Ton Rice Mill – industrial/commercial-scale operations.
Estimated Project Cost (Without Civil Work & Land)
| Category | Estimated Project Cost | Remarks |
|---|---|---|
| Raw Rice Mill | ₹5.50 Crore | High-capacity raw rice processing. |
| Steam Rice Mill | ₹6.50 Crore | Steam setup for better yield and quality. |
| Parboiled (Automatic) | Approx. ₹10 Crore | Fully automatic commercial parboiling & drying system. |
Read 10 Ton Rice Mill Project Cost in India with Full Estimated Cost
Frequently Asked Questions (FAQs)
Q1: What is the minimum investment required for a rice mill in India?
Ans: You can start with a basic 1-ton rice mill with an investment of around Rs. 8-13 lakh.
Q2: Which capacity is best for small businesses?
Ans: 1 or 2-ton capacity rice mill is best suited for small-scale entrepreneurs.
Q3: Is land mandatory for setting up a rice mill?
Ans: Yes, you need dedicated space for machinery installation, processing, and storage.
Q4: How long does it take to recover the investment?
Ans: On average, a rice mill can start generating ROI within 2-3 years, depending on scale and market.
Q5: Can I expand the capacity later?
Ans: Yes, many rice mill setups are scalable, allowing you to upgrade machinery as demand grows.
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