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

April 4, 2025By
Rice Mill Project Cost

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
1 Ton Rice Mill Project Cost

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
2 Ton Rice Mill Project Cost

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
Know the Investment & Growth Potential

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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  • Sameer Idrishi

    Welcome! I’m Sameer Idrishi, an expert in rice milling, fabrication, and engineering solutions. As a key part of Rice Milling Experts, I share practical insights, guides, and expert advice to help businesses set up and optimize their rice mills. Let’s explore the world of rice milling together!



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