§1What this business is

Malt barley is cleaned (magnet, separator, aspirator, de-stoner), ground in a heavy-duty pulveriser, sifted to the right fineness, moisture-tested and filled into 1 kg packets. Barley flour is used in flat bread, baby foods, speciality foods and in composite flours for bread. The DPR plans a 120 kg-an-hour line in rented premises.

Capacity: 120 kg of flour an hour, one 8-hour shift, 300 days = 2,88,000 kg a year; the DPR starts at 50% (1,44,000 kg) in year 1 and reaches 70% in year 5.

§2Is it right for you?

Who it is for

A grain trader or flour-mill owner in a barley-growing area who can sell health flours to shops, bakeries and food makers.

Who it is not for

Someone expecting quick profit or without buyers lined up for a niche flour.

Advantages

  • Barley flour sells as a health flour — the DPR notes B-complex vitamins and minerals
  • Simple dry-milling line: cleaner, pulveriser, sifter and packing machine
  • Barley is grown in UP, Rajasthan, MP, Haryana, Punjab and Himachal
  • The DPR was made for PMFME — 35% subsidy up to ₹10 L in its finance plan

Drawbacks

  • A small, niche market next to wheat atta
  • Very thin profit in year 1 (₹1.28 L on ₹95.76 L of sales)
  • Grain is the biggest cost — ₹54.72 L of raw barley in year 1
  • Flour must be kept dry; moisture spoils it

Skills you need

  • Grain grading and moisture testing
  • Setting a pulveriser and sifter
  • Selling to kirana shops, bakeries and health stores
  • Stock and cash control

Why difficulty 2/5: Simple dry milling, but you must build demand for a niche flour.

§3Market

Who buys

  • Kirana and grocery shops
  • Bakeries (composite bread flours)
  • Baby-food and speciality food makers
  • Health-food stores

How it sells

  • Wholesalers and distributors
  • Direct supply to food makers
  • Online and modern retail

Good to know

  • The DPR prices a 1 kg packet at ₹70 in year 1, rising ₹4 a year.
  • Barley flour is used in flat bread, baby foods, speciality foods and composite flours for bread, per the DPR.

§4Raw material & machinery

ItemQtyCost
Silo (2.5 tonne)2₹2,00,000
Vibrating pre-cleaner (400 kg/hr)1₹1,50,000
Heavy-duty pulveriser mill (450 kg/hr)1₹5,50,000
Flour sifter (300 kg/hr)2₹3,80,000
Flour testing kit—₹2,00,000
Packet filling and packaging machine1₹2,20,000
Unloading bins, elevator, conveyor and storage bins—₹7,40,000

From: NIFTEM-K project profile — Barley Flour Mill Unit (PMFME model DPR) (2022)

  • Malt barleycosted at ₹38 a kg in year 1, rising ₹2 a year; 10 days' stock
  • Packing materialfood-grade pouches for 1 kg packets

From: NIFTEM-K project profile — Barley Flour Mill Unit (PMFME model DPR) (2022)

§5Licences & registration

  1. FSSAI licence
  2. Udyam
  3. GST
  4. Trade licence from the local body
  5. State Pollution Control Board consent (flour dust)
  6. Legal Metrology registration for packed goods

We can do this registration for you

§6Schemes & subsidies

PMFME (the DPR is a PMFME model with a 35% subsidy up to ₹10 L), AIF (primary processing), PMEGP and CGTMSE fit. Bank finance in the DPR is ₹22.58 L (term loan ₹14.08 L + working capital ₹8.50 L), above the MUDRA ₹20 L limit.

§7Money

How the investment is worked out: NIFTEM-K PMFME model DPR: total ₹35.04 L = plant & machinery ₹24.40 L + miscellaneous assets ₹1.20 L + working capital ₹9.44 L. Land and building not included — premises rented (rent ₹3.60 L in year 1).

Working capital: Working capital ₹9.44 L (bank limit ₹8.50 L): 10 days of grain and 15 days of flour in stock, 15 days' credit to buyers. Malt barley is costed at ₹38 a kg in year 1; a 1 kg packet sells at ₹70.

Year not printed in the DPR; NIFTEM-K published it in July 2022 — check current machinery prices.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

1102.90Cereal flours other than wheat or maize (includes barley flour)

Export council / board: APEDA

  • Check the ITC(HS) export policy for the exact 8-digit line before shipping.

§9Risks — where people fail

  • Barley price swings at harvest
  • Slow sales if buyers do not know barley flour
  • Insects in stored grain
  • Competition from branded multigrain atta

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working barley flour mill unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (FSSAI licence, Udyam), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

Associations, clusters and training institutes — the directory is being built. Connect

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Barley Flour Mill?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. NIFTEM-K project profile — Barley Flour Mill Unit (PMFME model DPR) (2022)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.