How to Start Rice Business?
Rice is the staple food of several Asian countries. Suffice it to say rice business is widespread in these countries.
But this doesn't mean that western or any other countries are not up to this kind of business. This article gives you an overview of how to start a rice business.
Of course, any business feasibility study or the planning stage is always the first step to take. Ask yourself what kind of rice business you want: rice farming business, rice dealership business, rice mill business, and wholesale or retail rice selling business.
With the rice farming business, you will need a large parcel of land. You will need an excellent irrigation system, the best seeds, fertilizers, effective pesticides, harvesters, seeders, and tractors for plowing the land. These are just the necessities of this kind of rice business for you to be able to start and eventually and hopefully sell after the harvest season.
The rice mill business is also a good rice business. You will need a considerable barn or storage area for the product that will be milled, and that has been milled. You will also need to invest in a rice milling machine. Proper maintenance of the rice milling machine is essential in this kind of business.
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It is better to purchase a new one rather than a refurbished one. A refurbished rice milling machine may be cheaper, but in the long run, it will be more costly for you due to the high maintenance cost and probably for the repair of the machine. You will also need to hire an operator for your rice milling machine.
With rice dealership business and any kind of business, you need to apply for a business license. You need to look for a big storage room for the sacks of rice that will be delivered to you. You must also scout for a good location for your rice dealership business. You must also implement FIFO (first in, first out policy).
You need to have several rice varieties so your customers will have several options. Get a comprehensive non-life insurance policy for your business; ensure you include the clause regarding “Acts of God” in your insurance policy. Better be insured than be sorry.
The guidelines regarding the rice dealership business may also apply to the retail and wholesale business. Another guideline for this business is to ask for referrals from companies and friends. And be prepared to lose. If there is a peak season in any business, there will also be a lean season. So you have to prepare yourself for this scenario. Make alternative plans before the lean season month/s. Offer discounts and other marketing strategies during this season.
Asian Rice Wholesaler Explaining about Rice Pricing and How to Manage it
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First thing as in anything else in life we are much better off doing things in a group so that we have a support we can contribute to and also benefit from. Those that are decided to do thing alone have made up their mind and may not want to consider anything I might have to say. It is only meant as a friendly advise in any case.
We know that there are other farmers around us and most of them poor just like us. Maybe we have others throughout the years spend season after season borrowing money just to be able to harvest enough to pay for the money we borrowed and perhaps have enough rice left to eat. A single rice mill will nowadays can be purchased for around what is the equivalent of $5,000.00 US dollars and there are dryers we can also purchase for a similar amount. Rice had to be dried soon after harvest so that it will last long enough to allow the rice to be milled and then sold or taken to market to be sold.
If you can begin by lending money to farmers you can trust for a long enough period to multiply your own money to raise what you need to buy a mill, build a housing around the mill and also a dryer then you can either sell the rice at retail or sell it to other retailers at a lesser price. This will give you enough money to run your milling business and always have enough money to keep your business running without running to low in money. It is easy to run yourself right out of business in you start with only the minimum amount of money necessary. Be patient and work until you are sure you will survive and your business will always have customers or if you do everything for yourself enough rice to mill and sell without running out.
There are other possibilities which can and will help you have more success. If you want to know more or simply talk more with me about how this can be done you can email me at javiermitzli@ymail.com
Raghunath Natarajan
Startup Biz Hub - Advisor (Staff)
What is the cost of 3 tons per hour rice mill in India?
For raw rice it will cost you about 25,000,000 INR or 2.5 crore rupees. This includes the working capital but not the land cost. For parboiled rice of same size will cost you 3.5 crore rupees.
How many employees needed to run a 3 tph rice mill?
You need about 15 employees to run the plant but it also depends how much automation you have done in your plant.
Jestin James
Startup Biz Hub - Senior Advisor (Staff)
Jestin James
Startup Biz Hub - Senior Advisor (Staff)
Amit Sharma (amitsharma@consultant.com)
Milling Technologist
Amit Sharma (amitsharma@consultant.com)
Milling Technologist
@leena, all the central and south states are major producer of paddy so you can start anywhere in those states. Minimum cost to start a mill depends with your size of the mill, it can be as little as 1-1.5 crore indian rupees.
Jestin James
Startup Biz Hub - Senior Advisor (Staff)
santoshnp@yahoo.com
@Rahul, A feasible rice mill cant start with the budget of Rs. 50 lakhs.
Even you manage to get the loan you need more than 50 lakhs as working capital.
Dont trust the people committing you that they can setup a good rice mill in less than 50 lakhs, there are lots of frauds roaming in this business all over india.
I request the readers of this blog "Consult a milling technologist before starting any food processing industry"
Amit Sharma (amitsharma@consultant.com)
Milling Technologist
@tanuja, To start a rice mill first you need minimum of 2 Acres of land, Atleast Rs. 2 Crores for 4 TPH Rice Mill and Approx Same amount for the working capital. The main advantage of this business is that you need not rely on the local market as Govt. itself is the primary consumer of your finished product.
Amit Sharma (amitsharma@consultant.com)
Milling Technologist
@Tanay ganguly, There are 2 types of Rice Mill,
1. To Produce Raw Rice from Paddy
2. To Produce Par-boiled Rice from Paddy
A Feasible Automatic Rice Mill With Parboiled Section has the minimum capacity of 4 Ton/Hr and this project cost is Approx. 3 Crores, Same project with semi-automation will cost you Approx. 2.5 Crores. almost same amount you need for working capital.
To start this business, first you need at least 2 Acres of Land and then meet a MILLING TECHNOLOGIST who will design your plant as per your requirement and Budget you have.
There are few other options to start this business with less investment like you can setup a semi-automatic Raw rice plant with the capacity of 3 Ton/Hr with a small budget of Rs. 70 Lakhs for Plant & Machinery and Rs. 1 Crore for working Capital.
Amit Sharma (amitsharma@consultant.com)
Milling Technologist
Ph: 08686153789
Amit Sharma (amitsharma@consultant.com)
Milling Technologist