§1What this business is
You clean chana or arhar (tur), remove the husk and split it into dal; the husk and broken bits sell as cattle feed. Buyers are wholesalers, kirana shops, hotels and institutional buyers. Being near a mandi makes raw material cheaper.
Capacity: Chana dal 4,56,000 kg a year; Tur dal 4,32,000 kg a year.
§2Is it right for you?
Who it is for
Someone with grain-trading experience who understands mandi prices.
Who it is not for
Someone who does not know the ins and outs of trading — a dal mill is really trading plus processing.
Advantages
- Dal is on every plate — stable demand
- Raw material is easy to get in mandi towns
- By-products (broken bits/husk) also sell
- Fits schemes like PMFME/AIF
Drawbacks
- Large turnover but a very thin margin (~0.5–2%)
- Dal prices move with government stock limits and import policy
- Needs a lot of working capital
- Low recovery (dal yield) means a loss
Skills you need
- Mandi prices and grading
- Yield/recovery control
- Stock management
- Wholesale network
Why difficulty 3/5: Thin margin and large working capital — you must understand trading.
§3Market
Who buys
- Households (dal is part of the daily diet and the main protein source for vegetarians)
- Hotels, restaurants and canteens
- Institutions such as hostels and mess kitchens
How it sells
- Grain wholesalers and dal traders in the mandi
- Kirana shops
- Own packaged brand in supermarkets
Good to know
- Raw pulses are the main cost: ₹178.20 lakh in year 1 of the chana DPR, so buying well at harvest decides profit.
- Working capital (₹9.44 lakh) is larger than the machinery cost in the chana DPR.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Chana unit: bucket elevator, 200 kg/hour | 1 | ₹50,400 |
| Chana unit: reel machine, 200 kg/hour | 1 | ₹45,000 |
| Chana unit: conveyor | 1 | ₹45,000 |
| Chana unit: emery roll de-husker, 200 kg/hour | 1 | ₹50,000 |
| Chana unit: dal polisher, 200 kg/hour | 1 | ₹55,000 |
| Chana unit: splitting machine (18-inch chakki) | 1 | ₹95,000 |
| Chana unit: de-stoner, 200–250 kg/hour | 1 | ₹78,000 |
| Chana unit: storage tank, 50 tonne | 1 | ₹1.50 lakh |
| Chana unit: soaking containers | 5 | ₹10,000 (₹2,000 each) |
| Tur unit: horizontal cyclone separator | 1 | ₹65,000 |
| Tur unit: de-stoner, 300 kg/hour | 1 | ₹52,000 |
| Tur unit: emery roll de-husker, 300 kg/hour | 1 | ₹50,000 |
| Tur unit: classifier separator | 1 | ₹2.50 lakh |
| Tur unit: splitting machine, 400 kg/hour | 1 | ₹1.75 lakh |
| Tur unit: pulse grader, 300–400 kg/hour | 1 | ₹1.10 lakh |
| Tur unit: unloading bins, 120 litre | 2 | ₹4,200 (₹2,100 each) |
| Tur unit: dust collection bin, 1,100 litre | 1 | ₹25,500 |
| Tur unit: silo, 50 tonne | 1 | ₹4.50 lakh |
From: NIFTEM-K (MoFPI) PMFME Detailed Project Report – Dal Mill (Gram Based) Unit (2021) · NIFTEM-K (MoFPI) PMFME Detailed Project Report – Tur Dal Mill Unit (2021)
- Chickpeas (chana)bought directly from farmers; ₹67–80 per kg (₹67.50 in year 1 of the DPR)
- Pigeon peas (tur / arhar)bought directly from farmers; ₹80 per kg in year 1 of the DPR
- Packing materialfor the finished dal
From: NIFTEM-K (MoFPI) PMFME Detailed Project Report – Dal Mill (Gram Based) Unit (2021) · NIFTEM-K (MoFPI) PMFME Detailed Project Report – Tur Dal Mill Unit (2021)
Suppliers in Building Business Bazaar
Bangurigaon Dal Products Cluster · Khordha →Gajapati Millet And Dal Processing Cluster · Gajapati →Shiva Analyticals (India) Private Limited · Hoskote →Intertek India Private Limited (Food Services) · Hyderabad →Vimta Labs Limited · Hyderabad →Interfield Laboratories · Kochi →National Commodities Management Services Limited - NCML Labs · Gurugram →Fare Labs Private Limited · Gurugram →Edward Food Research and Analysis Centre Limited · Barasat →VJS Phytosanitary Service Private Limited (Food Testing Laboratory), Tuticorin · Thoothukudi →Lilaba Analytical Laboratories LLP, Surat · Surat →Avon Food Lab · Delhi →
In our raw material database
Tur (arhar, pigeon pea) →Chana (gram, chickpea) →Moong (green gram) →Urad (black gram) →Masoor (lentil) →
§5Licences & registration
- FSSAI licence
- Udyam
- GST
- Mandi licence (for buying)
- UPPCB consent (dust)
§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 DPRs were made for it), AIF (interest subvention for primary processing), PMEGP and CGTMSE fit; MUDRA up to ₹20 L.
§7Money
How the investment is worked out: NIFTEM PMFME DPRs: Dal mill (chana) ₹17.72 L (machinery ₹5.78 L, misc ₹2.50 L, WC ₹9.44 L); Tur dal mill ₹22.46 L (machinery ₹11.82 L, misc ₹1.20 L, WC ₹9.44 L). Premises rented.
Working capital: Both have WC ₹9.44 L (bank CC ₹8.50 L) — bulk buying at harvest time.
DPRs 2021.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: APEDA
- Pulses are APEDA-scheduled products; register with APEDA (RCMC) and hold an IEC before exporting.
- Export policy for pulses changes with domestic supply; check DGFT before each contract.
§9Risks — where people fail
- Pulse price & stock-limit policy
- Thin margins
- Working capital lock-up
- Storage pests
§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 dal mill 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 Dal Mill?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
- NIFTEM-K (MoFPI) PMFME Detailed Project Report – Dal Mill (Gram Based) Unit (2021)
- NIFTEM-K (MoFPI) PMFME Detailed Project Report – Tur Dal Mill Unit (2021)
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.