§1What this business is
Black rice paddy is cleaned, de-husked between rubber rolls, polished, graded to remove broken grains and packed in 1 kg packets. Black rice is known as Chakhao in Manipur, Kalabati in Odisha and Kavuni in Tamil Nadu; the DPR highlights its antioxidants, iron and fibre. Buyers are health-food shops, online sellers and premium grocery stores.
Capacity: 300 kg an hour; 7,20,000 kg of paddy a year gives 5,04,000 kg of rice after a 30% milling loss. The DPR starts at 40% (2,01,600 kg) and reaches 60% in year 5.
§2Is it right for you?
Who it is for
A farmer group, FPO or rice trader in a black-rice growing area with links to health-food and online sellers.
Who it is not for
Someone far from black-rice farms or with no plan to reach premium buyers.
Advantages
- Sells at a premium over white rice as a health food
- Compact milling line — machinery only ₹11.30 L
- Grown in Manipur, Odisha and Tamil Nadu, with local names that help branding
- Low break-even (36%) in the DPR
Drawbacks
- Niche market — buyers must know and trust the product
- Paddy supply comes from a few growing pockets
- Thin first-year profit (₹1.53 L)
- The DPR assumes a 30% milling loss
Skills you need
- Judging paddy quality and moisture
- Setting the mill to limit broken grains
- Branding and packaging for premium retail
- Selling online and to health stores
Why difficulty 2/5: Simple milling; the hard part is assured paddy and premium buyers.
§3Market
Who buys
- Health-conscious households
- Health-food and organic stores
- Premium grocery stores
- Hotels and restaurants
How it sells
- Online marketplaces
- Distributors to modern retail
- Direct sales at fairs and exhibitions
Good to know
- The DPR prices a 1 kg packet at ₹54 in year 1, rising ₹3 a year.
- Husk is about 20% of paddy weight; broken grains are graded out, per the DPR.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Paddy pre-cleaning machine | 1 | ₹1,80,000 |
| Compact rice mill (de-husking, polishing, grading) | 1 | ₹2,20,000 |
| Rice packaging machine | 1 | ₹3,80,000 |
| Bins, trolley, conveyor, silos, weighing machine, bucket elevator | — | ₹3,50,000 |
From: NIFTEM-K project profile — Black Rice Unit (PMFME model DPR) (2022)
- Black rice paddythe only raw material; costed at ₹24 a kg in year 1, rising ₹1 a year
- Packing material1 kg packets
From: NIFTEM-K project profile — Black Rice Unit (PMFME model DPR) (2022)
In our raw material database
§5Licences & registration
- FSSAI licence
- Udyam
- GST
- Mandi licence for buying paddy (state rules)
- State Pollution Control Board consent (husk dust)
- Organic certification (only if sold as organic)
§6Schemes & subsidies
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- AIFCentralUnclear3% interest subvention, up to ₹2 crore
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
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 ₹13.31 L (term loan ₹8.14 L + working capital ₹5.17 L), within the MUDRA ₹20 L limit.
§7Money
How the investment is worked out: NIFTEM-K PMFME model DPR: total ₹20.54 L = plant & machinery ₹11.30 L + miscellaneous assets ₹3.50 L + working capital ₹5.74 L. Premises rented (rent ₹3.60 L in year 1).
Working capital: Working capital ₹5.74 L (bank limit ₹5.17 L): 7 days of paddy and rice in stock, 10 days' credit to buyers. Paddy is costed at ₹24 a kg in year 1; a 1 kg packet sells at ₹54.
Year not printed in the DPR; NIFTEM-K published it in July 2022 — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: APEDA
- Rice export rules change often — check current DGFT notifications and the 8-digit ITC(HS) line before shipping.
§9Risks — where people fail
- Mixing with ordinary rice damages trust
- Crop failure in a small growing area
- Price pressure if many units start
- Changes in rice export rules
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working black rice processing unit unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (FSSAI licence, Udyam), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
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 Black Rice Processing Unit?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.