5 Ton Rice Mill Project Cost in India – Full Breakdown and Guide

Are you planning to set up a 5 ton per hour rice mill in India? That’s a smart business idea, especially if you’re in a paddy-rich area. A 5 ton/hour rice mill is considered a medium-scale rice mill plant and can help you process large quantities of paddy into polished rice every day.

But how much will it actually cost?

In this blog, we will break down the full 5 ton rice mill project cost India—including land, building, machinery, installation, and working capital. Whether you’re a farmer, entrepreneur, or investor, this guide will give you a clear idea of your budget.

What Does “5 Ton Rice Mill” Mean?

A 5-ton rice mill means the plant can process 5 tons (5000 kg) of paddy per hour. Over a 10-hour working day, you can process 50 tons of paddy daily.

With this capacity, you can serve:

• Local wholesalers

• Retail rice brands

• Exporters

• Government supply contracts

Total 5 Ton Rice Mill Project Cost in India

The overall cost of setting up a 5 ton/hour rice mill plant depends on multiple factors like location, machinery brand, land price, and automation level. Here’s a general cost estimate:

➡️ Total Project Cost: ₹90 lakhs to ₹2 crore (approx.)

Detailed Cost Breakdown

Let’s understand each part of the cost in more detail.

1. Land and Space

You need at least 1 to 2 acres of land for building, storage, and vehicle movement.

• Rural area: ₹20–30 lakhs

• Semi-urban area: ₹40–50 lakhs

If you already own land, you can save a huge part of the investment.

2. Building & Civil Work

Includes:

• Machine shed

• Raw paddy storage

• Finished goods storage

• Office and worker area

Cost Estimate: ₹15 to ₹30 lakhs depending on size and quality.

3. Rice Mill Machinery (5 Ton/hour)

Includes:

• Pre-cleaner

• Destoner

• Husker

• Paddy separator

• Whitener

• Polisher

• Grader

• Packaging unit

• Conveyors

Top brands: Ricetec Machinery, Mill Master, Panesar, Bhullar

Cost Estimate: ₹40 to ₹80 lakhs

Prices vary depending on:

• Brand

• Material (mild steel vs stainless steel)

• Automation level (semi or fully automatic)

4. Power & Electricity

You will need a 3-phase connection, good wiring, and a DG set for backup.

Cost Estimate: ₹5 to ₹10 lakhs

5. Installation and Labour

Includes:

• Machinery erection

• Technical team fees

• Training and testing

Cost Estimate: ₹2 to ₹5 lakhs

6. Licenses & Government Formalities

You will need:

• FSSAI license

• MSME/Udyam registration

• Factory license

• NOC from panchayat/municipality

• Pollution clearance (if required)

Cost Estimate: ₹1 to ₹2 lakhs

7. Working Capital

You will need money to:

• Buy raw paddy

• Pay salaries

• Cover utilities and transport

• Buy packaging material

Cost Estimate: ₹10 to ₹20 lakhs for the first 2–3 months

Profit Potential of a 5 Ton Rice Mill

Let’s take an example to understand profits.

• Daily paddy processed: 50 tons (50,000 kg)

• Yield (rice output): 65% = 32,500 kg/day

• Rice selling price: ₹35/kg

• Gross revenue/day: ₹11,37,500

After deducting paddy cost, labour, power, packaging, transport, and maintenance, the net profit margin can be 8%–15%.

➡️ You can earn ₹80,000 to ₹1.5 lakh profit per day (depending on rates and efficiency).

Tips to Reduce Project Cost

✅ Start with semi-automatic machinery and upgrade later
✅ Apply for NABARD or PMFME subsidy for rice mills
✅ Buy machinery from trusted domestic manufacturers
✅ Use second-hand equipment for non-core functions
✅ Hire experienced rice mill consultants to avoid mistakes

Where to Buy 5 Ton Rice Mill Machines in India?

Top suppliers include:

• Ricetec Machinery – ricetecmachinery.com

• IndiaMART – Search for verified sellers

• Panesar Engineering

• Sujatha Engineering

• Bhullar Group

Always compare:

• Warranty

• After-sales support

• Spare part availability

• Machine efficiency and power load

Final Thoughts

A 5 ton rice mill project in India is a great investment if you have access to raw paddy and a good sales plan. The total setup cost can range between ₹90 lakhs to ₹2 crore, depending on your location and business goals.

Once the plant is up and running, it can give strong monthly profits, especially if you focus on quality, branding, and efficient operations.

If you are ready to begin, start by preparing your project report, apply for a business loan, and choose the right machinery vendor.