Rice Mill Project Cost in India 2025-26: Full Breakdown & Setup Guide

Starting a rice mill business requires careful planning and budgeting. The cost of setting up a rice mill depends on its capacity, technology, and infrastructure. This guide provides a detailed breakdown of rice mill project costs from 1 ton to 10 tons, helping entrepreneurs make informed decisions. Each section provides an estimated cost analysis and potential profitability, ensuring you get a clear picture of the investment required.
1 Ton Rice Mill Project Cost
Setting up a 1-ton rice mill is ideal for small-scale businesses. This capacity is perfect for entrepreneurs entering the rice milling industry with limited investment. It provides a steady processing capability while maintaining cost-effectiveness.
- Machinery Cost: Rs. 4-6 lakh
- Land & Building: Rs. 3-5 lakh
- Installation & Miscellaneous: Rs. 1-2 lakh
- Total Estimated Cost: Rs. 8-13 lakh
- Profit Potential: Can process 25-30 tons per month, generating steady income and providing a return on investment within a few years.
Cost Component | Estimated Cost |
---|---|
Machinery Cost | Rs. 4-6 lakh |
Land & Building | Rs. 3-5 lakh |
Installation & Miscellaneous | Rs. 1-2 lakh |
Total Estimated Cost | Rs. 8-13 lakh |

2 Ton Rice Mill Project Cost
A 2-ton rice mill is suitable for small entrepreneurs looking to scale up. With this capacity, you can process double the quantity compared to a 1-ton unit.
- Machinery Cost: Rs. 7-9 lakh
- Land & Building: Rs. 5-7 lakh
- Installation & Miscellaneous: Rs. 2-3 lakh
- Total Estimated Cost: Rs. 14-19 lakh
- Profit Potential: Can process 50-60 tons monthly, suitable for local market supply.
Cost Component | Estimated Cost |
---|---|
Machinery Cost | Rs. 7-9 lakh |
Land & Building | Rs. 5-7 lakh |
Installation & Miscellaneous | Rs. 2-3 lakh |
Total Estimated Cost | Rs. 14-19 lakh |

3 Ton Rice Mill Project Cost
3-ton mills are popular for small to medium businesses. They offer better automation and higher processing speed.
- Machinery Cost: Rs. 9-12 lakh
- Land & Building: Rs. 6-8 lakh
- Installation & Miscellaneous: Rs. 3-4 lakh
- Total Estimated Cost: Rs. 18-24 lakh
- Profit Potential: Can produce 75-90 tons monthly, supplying wholesalers and retailers.
Cost Component | Estimated Cost |
---|---|
Machinery Cost | Rs. 9-12 lakh |
Land & Building | Rs. 6-8 lakh |
Installation & Miscellaneous | Rs. 3-4 lakh |
Total Estimated Cost | Rs. 18-24 lakh |
4 Ton Rice Mill Project Cost
This capacity balances affordability and commercial potential. Great for entrepreneurs expanding operations.
- Machinery Cost: Rs. 12-15 lakh
- Land & Building: Rs. 8-10 lakh
- Installation & Miscellaneous: Rs. 4-5 lakh
- Total Estimated Cost: Rs. 24-30 lakh
- Profit Potential: Can process 100-120 tons per month.
Cost Component | Estimated Cost |
---|---|
Machinery Cost | Rs. 12-15 lakh |
Land & Building | Rs. 8-10 lakh |
Installation & Miscellaneous | Rs. 4-5 lakh |
Total Estimated Cost | Rs. 24-30 lakh |
5 Ton Rice Mill Project Cost
5-ton mills are considered full-scale commercial setups with better technology and processing lines.
- Machinery Cost: Rs. 15-18 lakh
- Land & Building: Rs. 10-12 lakh
- Installation & Miscellaneous: Rs. 5-6 lakh
- Total Estimated Cost: Rs. 30-36 lakh
- Profit Potential: Can produce 125-150 tons/month.
Cost Component | Estimated Cost |
---|---|
Machinery Cost | Rs. 15-18 lakh |
Land & Building | Rs. 10-12 lakh |
Installation & Miscellaneous | Rs. 5-6 lakh |
Total Estimated Cost | Rs. 30-36 lakh |
6 Ton Rice Mill Project Cost
A 6-ton rice mill is suitable for well-established businesses targeting regional markets.
- Machinery Cost: Rs. 18-21 lakh
- Land & Building: Rs. 12-14 lakh
- Installation & Miscellaneous: Rs. 6-7 lakh
- Total Estimated Cost: Rs. 36-42 lakh
- Profit Potential: Can handle 150-180 tons per month.
Cost Component | Estimated Cost |
---|---|
Machinery Cost | Rs. 18-21 lakh |
Land & Building | Rs. 12-14 lakh |
Installation & Miscellaneous | Rs. 6-7 lakh |
Total Estimated Cost | Rs. 36-42 lakh |
7 Ton Rice Mill Project Cost
This is a medium-to-large scale mill suitable for state-level distribution.
- Machinery Cost: Rs. 21-24 lakh
- Land & Building: Rs. 14-16 lakh
- Installation & Miscellaneous: Rs. 7-8 lakh
- Total Estimated Cost: Rs. 42-48 lakh
- Profit Potential: 175-210 tons/month.
Cost Component | Estimated Cost |
---|---|
Machinery Cost | Rs. 21-24 lakh |
Land & Building | Rs. 14-16 lakh |
Installation & Miscellaneous | Rs. 7-8 lakh |
Total Estimated Cost | Rs. 42-48 lakh |
8 Ton Rice Mill Project Cost
A large unit with high processing speed and automation, suitable for bulk suppliers.
- Machinery Cost: Rs. 24-27 lakh
- Land & Building: Rs. 16-18 lakh
- Installation & Miscellaneous: Rs. 8-9 lakh
- Total Estimated Cost: Rs. 48-54 lakh
- Profit Potential: 200-240 tons/month.
Cost Component | Estimated Cost |
---|---|
Machinery Cost | Rs. 24-27 lakh |
Land & Building | Rs. 16-18 lakh |
Installation & Miscellaneous | Rs. 8-9 lakh |
Total Estimated Cost | Rs. 48-54 lakh |
9 Ton Rice Mill Project Cost
Perfect for companies looking to export or cater to urban demand.
- Machinery Cost: Rs. 27-30 lakh
- Land & Building: Rs. 18-20 lakh
- Installation & Miscellaneous: Rs. 9-10 lakh
- Total Estimated Cost: Rs. 54-60 lakh
- Profit Potential: 225-270 tons/month.
Cost Component | Estimated Cost |
---|---|
Machinery Cost | Rs. 27-30 lakh |
Land & Building | Rs. 18-20 lakh |
Installation & Miscellaneous | Rs. 9-10 lakh |
Total Estimated Cost | Rs. 54-60 lakh |
10 Ton Rice Mill Project Cost
Top-tier commercial rice mill plant with full automation and high-end output.
- Machinery Cost: Rs. 30-35 lakh
- Land & Building: Rs. 20-25 lakh
- Installation & Miscellaneous: Rs. 10-12 lakh
- Total Estimated Cost: Rs. 60-72 lakh
- Profit Potential: 250-300+ tons/month.
Cost Component | Estimated Cost |
---|---|
Machinery Cost | Rs. 30-35 lakh |
Land & Building | Rs. 20-25 lakh |
Installation & Miscellaneous | Rs. 10-12 lakh |
Total Estimated Cost | Rs. 60-72 lakh |

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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