§1What this business is
Graded paddy is soaked in hot water for about 30 hours, drained, roasted in hot sand until a few grains burst, and fed into a flaking (avil) mill whose rollers press it into flakes. The flakes are sorted, graded and packed in lined bags or retail pouches. Poha is a daily breakfast food across India and a base for chivda. The report plans 1.25 tonnes a day.
Capacity: 1.25 tonnes a day, 300 days — 375 tonnes a year; the report runs at 70% in year 1 rising to 100%.
§2Is it right for you?
Who it is for
Someone in a paddy-growing area with links to grocers and namkeen makers.
Who it is not for
Someone far from paddy supply — margins cannot carry long transport.
Advantages
- Daily breakfast food with steady demand
- Simple, proven machinery (₹6.00 L)
- Paddy is easy to get in rice areas
- Sells loose and in packets, and to chivda makers
Drawbacks
- Thin gap between paddy and poha prices
- Paddy prices move with the crop and MSP
- Furnace roasting is hot work
- Many local mills compete on price
Skills you need
- Soaking and roasting control
- Flaking-mill adjustment for thick or thin poha
- Grading and packing
- Selling to wholesalers and namkeen makers
Why difficulty 2/5: Simple process and machinery; profit depends on buying paddy well.
§3Market
Who buys
- Households (breakfast poha)
- Namkeen and chivda makers
- Hotels, canteens and street-food sellers
How it sells
- Wholesale grain and grocery markets
- Kirana shops (loose and packets)
- Bulk supply to namkeen makers
- Modern retail with branded packs
Good to know
- The report calls poha a mass-consumption item eaten across all sections of society.
- It says good packaging and food-standard compliance (FSSAI, ISO) can open modern retail.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Avil (flaking) mill | 2 | ₹2,00,000 (₹1,00,000 each) |
| Roasting machine | 2 | ₹35,000 (₹17,500 each) |
| Furnace | 1 | ₹1,13,000 |
| Paddy soaking tank | 1 | ₹75,000 |
| Storage tank | 1 | ₹35,000 |
| Sieves | 4 | ₹24,000 (₹6,000 each) |
| Sealing, packing and filling machine | 1 | ₹45,000 |
| Weighing scale | 1 | ₹20,000 |
| Miscellaneous tools | 1 lot | ₹53,000 |
From: PMEGP sample project report — Rice Flakes (Poha) (prepared by Udyami/Samadhan)
- Paddy₹22,000 a tonne in the report; 80% recovery as poha
- Food-grade packaging (paper, HDPE with inner liner, cartons)for loose and retail packs
From: PMEGP sample project report — Rice Flakes (Poha) (prepared by Udyami/Samadhan)
In our raw material database
§5Licences & registration
- FSSAI licence or registration
- Udyam
- GST
- Legal Metrology registration for packed goods
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
The report was written for PMEGP; PMFME supports micro food units; MUDRA and CGTMSE help with the loan.
§7Money
How the investment is worked out: Samadhan report: building & civil work ₹3.00 L + plant & machinery ₹6.00 L + furniture ₹0.74 L + working capital ₹5.94 L = ₹15.68 L.
Working capital: Working capital ₹5.94 L (bank finance ₹5.34 L) for 10 days of paddy and 15 days of poha.
Year not printed on the sample report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: APEDA
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Paddy price rises
- Moisture and insects in stock
- Price competition
- Food-safety lapses
§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 rice flakes (poha) making 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 or registration, 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 Rice Flakes (Poha) Making?
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.