Rice Mill Project Report

Topics: Rice, Tonne, Bran Pages: 5 (1095 words) Published: September 8, 2013


8th Floor, Parishrama Bhavan, Basheerbagh, Hyderabad

1. Introduction: The Rice milling is the process that helps in removal of hulls and bran’s from paddy grains to produce polished rice. Rice is rich in genetic diversity with thousands of varieties grown throughout the world. Rice has been one of man's most important foods. Today, this unique grain helps sustain two-thirds of the world's population. It is life for thousands of millions of people. It is deeply embedded in the cultural heritage of their societies. About four-fifths of the world's rice are produced by small-scale farmers and are consumed locally.

2. Market: Global rice production in 2008-09 is 460 million tons while consumption stood around 446 million tons. Andhra Pradesh is one of the major paddy cultivated state in India with 39.78 lakh hectares with an output of 118 lakh tonnes. In Andhra Pradesh rice is grown in 22 districts of which 18 districts are under high productivity group, with an yield of more than 2500 kg/ha.

Production of Rice in India:

India produced 95.68 mn tonnes in the year 2007-08 of which most of the production is available during Kharif season by almost 86.5%. The year wise rice production is given in the table below:

Product/Rice Khariff Rabi Total

2003-04 78.62 9.91 88.53

2004-05 72.23 10.90 85.3

2005-06 78.27 13.52 91.79

2006-07 80.17 13.18 93.35

2007-08 82.78 12.90 95.68


Indian sales are primarily categorized as FCI sales and local market sales. FCI (Food Corporation of India) is a major purchaser of rice and Government suggests minimum support price for paddy and FCI purchases 20-25% of total rice production in the country as levy.

3. Manufacturing Process: Rice forms are the basic primary processed product obtained from paddy and this is further processed for obtaining various secondary and tertiary products. Step wise procedure of processing of paddy to various finished products is illustrated in the table given below.

Cleaning & Boiling Process: Drain of Water

Cleaning of paddy

Pre-cleaning of Raw Paddy in tanks

Soaking in tank

Steaming in vessel (950C)

Sending to rice mill

Tempering for 24 hrs in day bins

Drying at 100”C/70”C for 6 Hours

Unloading for drier

4. Technology: The technology required for the ginning & pressing operations are De-stoner, Paddy Husker and Paddy Separator, Vertical Whitener, Humidifier Air Polisher, Grain color sorter, Pre-cleaner, GEC alstom motors, Airlocks, gear motors, couplings, elevators, sifters, graders, blowers, electronic weighing and bagging system, slat conveyor, Rotary screw air compressor, DG set, weigh bridge, electrical infrastructure and other accessories etc.


5. Investment: The investment cost for setting up a Rice mill with a capacity of 4 TPH will be around Rs. 8.69 Crores and the break up of the cost is tabulated below.

The land requirement will be around 5 acres. The pre-operative expense includes interest during construction of Rs 0.63 Crores. Plant & Machinery including installation, erecting & commissioning charges are of Rs. 2.80 Crores and the cost of electrical infrastructure & furniture & fixtures works out to Rs. 0.20 Crores. Buildings and civil works are estimated to be Rs. 2.02 Crores. Contingencies, electricity deposits are also considered in the project cost. Margin money for working capital is estimated to be Rs. 1.32 Crores.

Table 1: Project Cost S.No. 1 2 3 4 5 6 7 8 9 10 11 Description Land & Site Development Buildings & Civil works Plant & Machinery – Indigenous Plant & Machinery – Imported Electrical Infrastructure Electricity Deposits Furniture & Fixtures Preliminary Expenses Pre-operative Expenses Contingency @5% Margin Money for Working capital Total Project Cost Cost (Rs in Crores) 1.42 2.02 1.19 1.60 0.15 0.06 0.05 0.08 0.55 0.24 1.32 8.69


Means of Finance The project is proposed to finance with a...
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