How much does it cost to set up a rice mill in Nigeria?

However, the cost ranges from N550, 000 – N10. 2million from cottage level to N57million for medium size plant and over N500million for large scale. Basic factors to consider in determining the initial cost include the capacity to produce, the source(s) of the machinery, whether to construct or rent, the location, etc.

How much does it cost to start a rice mill?

Raw material and Components

The total requirement of paddy for an output of 600 tonnes will be 750 tonnes at recovery rate of 80%. The total cost of raw material and components is estimated to be about Rs. 40.50 lakhs per annum at 60% capacity in 1st year the cost works out to Rs24. 30 lakhs.

How do I start a rice mill business in Nigeria?

Starting a Rice Mill Business

  1. Acquiring a suitable land space: …
  2. Finalizing orientation and placement of machinery: …
  3. Ensuring adequate water and electricity supply: …
  4. Storage planning: …
  5. Utilization of by-products and wastage removal: …
  6. Quality check and control:

Is rice mill profitable?

Rice mill business is one of the best options to get the maximum out of it. In most of the manufacturing opportunities established by the milling business is definitely cost intensive and profitable. And the profit that you get from the rice mill business is relative. The modern rice mill project cost is quite high.

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How much profit does a rice mill make?

But, when considering the profit margin of it, we can consider the gross profit margin in the rice mills as 20%. The rice is comprised of about 20% husk and 11% bran layers, which leaves you with about 9% edible rice that free from impurities. To get edible rice, milling can be done into various processes.

How do I start a small rice mill?

To start Rice Mill Plant, one needs licenses and permit from your state government authority.

  1. Step 1: Register a Company. …
  2. Step2: Udyog Aadhaar MSME Registrations: …
  3. Step 3 – Factory License: …
  4. Step 4 – NOC from pollution department: …
  5. Step 5 – PFA and ESIC Registration: …
  6. Step 6 – FSSAI License: …
  7. Step 7 – GST Registration:

Is Rice Mill a profitable business in Nigeria?

In conclusion, rice milling; an agro-based business is very profitable (45-55% return on investment) and sustainable. It has a low capital requirement and the technical know-how is not complicated. The machinery and equipment can be sourced locally. The project has a short pay–back period.

Is rice business profitable in Nigeria?

To be straightforward, Yes, rice farming or selling is a profitable business in Nigeria. Rice is one of the stable food in Nigeria. If you’re into rice selling, then I can categorically guarantee you that you can sell it in any part of the country and make profit.

How do I become a rice distributor?

Requirements to start a rice distribution or sales business?

  1. A large farm or external supplier who will serve as your source.
  2. Large warehouse to store your rice.
  3. Enough Capital to buy large quantities of rice so that you get it at affordable rates.
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How much land is required for rice mill?

Generally, 1.00 to 1.50 acre of land is required for establishing an improved rice milling unit having an installed processing capacity of 2 MT/ hr. The total power requirement will to the tune of 75 KW.

What is modern rice mill?

Modern Rice Milling Processes

Milled Rice is being produced, in Rice mills, after removing bran, husk and germ. Rice produced after modern rice milling process has different flavor, appearance ( whiten) and extended life.

Why do we polish rice?

Polished rice refers to rice which has been milled to remove the husk, bran, germ, and varying amounts of the nutrients contained in them, leaving a starch-rich grain. … Polished rice is easier to cook and has a more delicate taste, which may account for its sudden rise in popularity in most parts of the world.

How can I improve my rice business?

To help you succeed in this business, here are five important tips you should follow.

  1. Get an NFA license first. …
  2. Buy proper equipment. …
  3. Choose a good location for your rice business. …
  4. Invest on proper storage for your rice. …
  5. Get to know your suppliers and prospective customers.

What does a rice mill do?

A rice mill is a food-processing facility where paddy is processed to rice to be sold in the market. The entire product is procured from paddy fields, milled and processed hygienically in modern machinery and dust-free environment and cleaned through sorting machines.

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