§1What this business is

Kala Namak paddy is cleaned, de-husked, polished, graded and packed. It is a short-to-medium grain, non-basmati scented rice of the Himalayan Terai in eastern UP, with a black husk and a strong aroma; it elongates more than basmati on cooking, per the report.

Capacity: 1,500 kg of rice a day (10-hour shift); 40% capacity in year 1.

§2Is it right for you?

Who it is for

A farmer group, FPO or rice trader in the Kala Namak districts of eastern UP.

Who it is not for

Someone outside the GI area without assured paddy supply.

Advantages

  • GI tag — only rice from the defined area can carry the name
  • Premium aromatic rice with export promise
  • Packed rice market is moving from loose to branded
  • Simple milling line

Drawbacks

  • Paddy supply limited to the GI area
  • Thin net margin in early years
  • Fake 'Kala Namak' rice in the market
  • Needs brand building

Skills you need

  • Paddy buying and moisture checks
  • Milling and polishing for low breakage
  • Branding and packaging
  • GI and quality paperwork

Why difficulty 3/5: Simple milling, but paddy sourcing and branding decide the margin.

§3Market

Who buys

  • Households wanting premium rice
  • Gift and festival buyers in eastern UP
  • Exporters

How it sells

  • Grocery and modern retail
  • Online sales and ODOP outlets

Good to know

  • The report says India's packed rice market is growing at nearly 12% a year.

§4Raw material & machinery

ItemQtyCost
Paddy pre-cleaning machine1₹1,80,000
Compact milling machine1₹2,20,000
Packaging machine1₹3,80,000
Material handling and other equipment1 lot₹3,50,000

From: PMEGP sample project report — Kala Namak Chawal DPR (prepared by Udyami/Samadhan)

  • Kala Namak paddythe only raw material; easily available in the growing area, per the report
  • Packing bags and pouchesfor branded packs

From: PMEGP sample project report — Kala Namak Chawal DPR (prepared by Udyami/Samadhan)

In our raw material database

Paddy and rice →

§5Licences & registration

  1. FSSAI licence or registration
  2. Udyam registration
  3. GST registration
  4. Authorised-user registration under the GI if you sell as Kala Namak rice
  5. Mandi licence for buying paddy

We can do this registration for you

§6Schemes & subsidies

Prepared for PMEGP; PMFME supports ODOP food products and Kala Namak rice is Siddharthnagar's ODOP; AIF covers primary processing; ₹18.66 L is within MUDRA.

§7Money

How the investment is worked out: Plant & machinery ₹11.30 L + furniture ₹1.00 L + working capital ₹6.36 L = ₹18.66 L. Land owned or rented. Term loan ₹11.07 L, working capital ₹5.72 L, own ₹1.87 L.

Working capital: Working capital ₹6.36 L (bank ₹5.72 L): 10 days of stock, 15 days' credit each way.

Year not printed in the report — check current machinery and raw-material prices.

How to prepare a loan file

§8Export potential

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

1006 30Semi-milled or wholly milled rice

Export council / board: APEDA

  • Non-basmati rice exports are subject to DGFT policy, which changes — check before you ship.

§9Risks — where people fail

  • Paddy price swings
  • Mixing with ordinary rice harming trust
  • Storage pests
  • Slow brand building

§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 kala namak rice processing 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 or registration, Udyam registration), 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 Kala Namak Rice Processing?

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

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Kala Namak Chawal DPR (prepared by Udyami/Samadhan)

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