MY BUSINESS PLAN: I WANT TO ESTABLISH A BOILED

RICE MILL.
6
Rice Mill

Introduction:
The largest consumed calorie source among the food grains.
With a per capita availability of 73.8 kg it meets 31% of the
total calorie requirement of the population. India is the
second largest producer of rice in the world next to China.
The all India area, production, and yield of rice in the year
2001-02 were 44.62 million hectares, 93.08 million tones food
grains in India. West Bengal is the leading producer of paddy
in the country. It accounts for 16.39% of the total production,
and the other leading states are Uttar Pradesh (13.38%),
Andhra Pradesh (12.24%), Punjab (9.47%), Orissa (7.68%) and
Tamil Nadu (7.38%); the remaining states account for 33.45%
of the production. India is also one of the leading exporters
of rice in the world market. India’s export of rice stood at
23.89 lakh MT in 1997-98. The corresponding value of foreign
exchange earned was to the tune of Rs. 3371.00 crore in
1997-98.
. Modern rice mills are having high capacity and are capital
intensive, although efficient. Small modern rice mills have
been developed and are available in the market but the lack
of information is a bottleneck in its adoption by the
prospective entrepreneur. The present model will go a long
way in bridging the information gap.
Description of Rice Milling Operation:
Paddy in its raw form cannot be consumed by human beings.
It needs to be suitably processed for obtaining rice. Rice
milling is the process which helps in removal of hulls and
barns from paddy grains to produce polished rice. Rice
forms the basic primary processed product obtained from
paddy and this is further processed for obtaining various
secondary and tertiary products.
The basic rice milling processes consist of:
Process Definition
1. Pre Cleaning: Removing all impurities and unfilled grains
from paddy
Industry of the country. At present it has a turnover of more
2. De-stoning: Separating small stones from paddy
3. Parboiling (Optional): Helps in improving the nutritional
quality by gelatinization of starch inside the rice grain. It
improves the milling recovery percent during deshelling and
polishing / whitening operation 4. Husking: Removing husk
from paddy
5. Husk Aspiration: Separating the husk from brown rice/
unhusked paddy
6. Paddy Separation: Separating the unhusked paddy from
brown rice
7. Whitening: Removing all or part of the bran layer and germ
from brown rice
8. Polishing: Improving the appearance of milled rice by
removing the remaining bran particles and by polishing the
exterior of the milled kernel
9. Length Grading: Separating small and large brokens from
head rice
10. Blending: Mixing head rice with predetermined amount of
brokens, as required by the customer
11. Weighing and bagging: Preparing the milled rice for
transport to the customer
The flow diagram of the various unit operations are as
follows:
Status of Rice Milling Units in India:
Rice milling is the oldest and the largest agro processing
Mill than 25,500/- crore per annum. It processes about 85
million tones of paddy per year and provides staple food
grain and other valuable products required by over 60% of
the population. Paddy grain is milled either in raw condition
or after par-boiling, mostly by single hullers of which over
82,000 are registered in the country. Apart from it there are
also a large number of unregistered single hulling units in
the country. A good number (60 %) of these are also linked
with par-boiling units and sun -drying yards.
The Central Govt. is also providing a big boost towards the
development of this industry. It has since repealed w.e.f. May
27, 1998 the Rice Milling Industry (Regulation) Act, 1958 and
Rice Milling Industry (Regulation and licensing) Rules , 1959.
Further, rice milling sector which was earlier reserved for the
small scale sector, have now been dereserved. As such, no
license/ permission is now required for setting up a rice mill.
Investment components of an improved rice mill:
The various investment components are as follows:
Land, layout plan and site development requirement:
The land requirement for establishing an improved rice
milling unit will depend upon
1. Whether the unit will be using a parboiling unit for pre-
treatment of paddy before commencement of milling
operation or it will be directly milling raw paddy.
2. Whether a single pass or a multipass milling unit is to be
installed.
Generally 2.00 to 2.50 acre of land is required for establishing
an improved rice milling unit having an installed processing
capacity of 2 MT/ hr; operating for single shift / day of 8 hr
duration; 300 days per annum; i.e. 4800 MT /annum. The land
should be with proper elevation. Low lying areas should be
avoided. Else proper land filling, compaction and
consolidation should be done. Drainage and linkages with
road and other communication should also be ensured. The
layout of the rice milling plant should be done in a manner
that helps in smooth operation of various unit operations in
tandem to bring about optimal capacity utilization and
economizing power consumption development such as
construction of boundary wall, internal roads and drainage
system etc
Civil construction:
The various construction requirement of an improved rice
milling unit are as follows
1. Raw paddy god own
2. Cleaning unit
3. Drier and necessary supporting structures such as,
boiler /blower system etc.
4. Milling section
5. Finished product stores
6. Machine rooms
7. Auxiliary structures such as office, watch and ward etc.

Technology:
It is better to use rubber roll shellers for dehusking of paddy
in the unit for better performance. Plant and machinery and
electrical-The details of the nature and type of plant and
machinery, their capacity, power consumption, level of
automation varies upon the market needs, nature and type of
the end products and the investment capacity of the
entrepreneur. Whenever paddy is required to be parboiled
prior to deshelling, a parboiling unit with steam boilers has
to be installed by the milling unit.
The details of plant and machinery for the rice milling unit
are as follows:
1. Paddy cleaner-Rs 6, 50000/-
2. Rubber Roll Paddy Shellers-Rs 98,000/-
3. Paddy Separators-Rs 45,000/-
4. Blowers, Husk and Barn Aspirators-Rs 35,000/-
5. Paddy Polishers-Rs 6, 00000/-
6. Rice grader/ aspirator-Rs 50,000/-
7. Bucket Elevators-Rs 98,000/-
8. Electric-Rs 2, 50000/-
9. Insurance-Rs 3, 65000/-
Total amount without Land cost-Rs 2191000/-

Power:
The total power requirement for the model project will to the
tune of 75 KW. The essential power requirement of the unit is
about 90 HP and accordingly suitable standby generator
provision is made.
Water:
Water is required for watersupply of desired quality and
quantity should be ensured while appraising the proposal.
Organizational setup:
The unit may require a plant supervisor, one accountant cum
store keeper, three machine operators, one peon parboiling
and domestic consumption purpose. Suitable arrangements
for continuos and two security staff. Apart from this, three
skilled workers and twelve unskilled workers may be
required for managing the day to day operation of the unit
Depending upon the size of the unit; the manpower
requirement may be modified.
Security:
Banks may take a decision as per RBI Guidelines
Results of financial analysis are as under:
The financial analysis of the investment on an improved rice
mill having an installed capacity of 4800 MT/ annum has been
attempted and is placed from. The project has a margin
money component of 25% with the rate of interest on term
loan and working capital as 12% p.a. and 13% p.a.
respectively. For this project, the financial indicators of the
investment are as under:

SUNIL KUMAR DUBEY ( MBA 1ST SEM.)