§1What this business is

Whole ragi (finger millet) is cleaned, ground in a heavy-duty pulveriser, sifted, moisture-tested and filled into 1 kg packets. Ragi is gluten-free and, per the DPR, has the highest calcium of all cereals and millets (344 mg per 100 g); it is used for porridge, roti, malt drinks, baby food and bakery items. Karnataka, Uttarakhand, Maharashtra, Tamil Nadu, Odisha, Andhra Pradesh and Gujarat are the main growing states.

Capacity: 200 kg an hour; 4,80,000 kg of ragi a year gives 4,56,000 kg of flour after 5% wastage. The DPR starts at 55% (2,50,800 kg) and reaches 75% in year 5.

§2Is it right for you?

Who it is for

A miller, trader or FPO in a ragi-growing state with links to grocery, health-food and bakery buyers.

Who it is not for

Someone without an assured ragi supply or a plan to reach health-food buyers.

Advantages

  • Calcium- and iron-rich, gluten-free flour with a health image
  • Suits diabetic and gluten-sensitive buyers, per the DPR
  • Millet promotion has raised buyer awareness
  • Simple dry-milling line

Drawbacks

  • Ragi grows in a few states — far from many northern markets
  • Break-even at 47% of capacity
  • Ground flour keeps less well than whole grain
  • Local chakkis grind ragi cheaply for households

Skills you need

  • Grain cleaning and moisture testing
  • Setting a pulveriser and sifter
  • Packaging and shelf-life control
  • Selling to grocery and health stores

Why difficulty 2/5: Simple milling; steady grain supply and buyers matter most.

§3Market

Who buys

  • Households, especially in South India and the hills
  • Grocery and health-food stores
  • Bakeries and baby-food makers
  • Diabetic and gluten-free buyers

How it sells

  • Wholesalers and distributors
  • Modern retail and online
  • Direct supply to food makers

Good to know

  • The DPR prices a 1 kg packet at ₹60 in year 1, rising ₹3 a year.
  • Ragi is used in porridge, puddings, cookies and malt drinks, 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₹5,00,000
Flour sifter (300 kg/hr)2₹3,20,000
Flour testing kit—₹2,00,000
Packet filling and packaging machine1₹2,20,000
Unloading bins, elevator, conveyor and storage bins—₹7,20,000

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

  • Whole ragi (finger millet)costed at ₹36 a kg in year 1, rising ₹2 a year; 10 days' stock
  • Packing material1 kg packets

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

In our raw material database

Ragi (finger millet) →

§5Licences & registration

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

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 ₹22.98 L (term loan ₹13.48 L + working capital ₹9.50 L), above the MUDRA ₹20 L limit.

§7Money

How the investment is worked out: NIFTEM-K PMFME model DPR: total ₹35.06 L = plant & machinery ₹23.10 L + miscellaneous assets ₹1.40 L + working capital ₹10.56 L. Premises rented (rent ₹3.60 L in year 1).

Working capital: Working capital ₹10.56 L (bank limit ₹9.50 L): 10 days of grain and 15 days of flour in stock, 7 days' credit to buyers. Ragi is costed at ₹36 a kg in year 1; a 1 kg packet sells at ₹60.

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 millet flours)

Export council / board: APEDA

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

§9Risks — where people fail

  • Ragi price and crop swings
  • Competition from local chakkis and big brands
  • Insects and moisture in stored grain
  • Slow sales outside ragi-eating regions

§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 ragi (finger millet) 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 Ragi (Finger Millet) Flour Mill?

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

Get a DPR / loan file made

Sources

  1. NIFTEM-K project profile — Ragi 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.