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How to Set up a Rice Mill Industry in India

How to Set up a Rice Mill Industry in India

Rice is a significant commercial crop with the highest rate of consumption in India. Revenue in the Rice segment amounted to US$84.43bn in the year 2022. The expected annual growth of the market is 7.16% (CAGR 2022-2027), and expected volume of 164,888.1mkg by 2027 along with a volume growth of 5.2% in 2023.

The statistical data proves that having a business in this segment can be profitable for the businesses but  the entrepreneurs hesitate to invest in the same due to lack of awareness about the legalities associated with it,  the most important being   the set up of Rice Mill Industry . The article discusses the process of setting up a Rice Mill Industry in India to help businessmen start such business without any hassle. 

How to set up a Rice Mill Industry in India?

The following procedure must be followed to set up a Rice Mill Industry in India.

Registration of the Company

The first and foremost step to set up a Rice Mill Industry in India is to register the company by obtaining a certificate of incorporation from the appropriate authority. There are various business models which can be opted for by the businessman, such as

  • Private Limited Company
  • Public Limited Company
  • One Person Company
  • Limited Liability Company

The selection of the type of company can be based on certain important factors, such as the scope of operation and the capital investment by the business owner.

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Udyog Aadhaar MSME Registrations

The MSMEs[1] can be classified into the following types –

  • Micro Enterprises
  • Small Enterprises
  • Medium Enterprises  

The Udhyog Aadhar MSME Registrations offer numerous productive benefits to the rice mill industry owners together with other entrepreneurs as well 

MSME Classification 

SectorMicroSmall Medium
Manufacturing< Rs.25 lakh< Rs.5 crore< Rs.10 crore
Services< Rs.10 lakh< Rs.2 crore< Rs.5 crore

Such registrations can be obtained by filing an application with the concerned authority and following the procedure prescribed by the authority.

Obtaining the Factory License

Another step involved n setting up a rice mill industry in India is to obtain a factory licence as per the provisions of the Factories Act 1948. The applicant must submit the following documents along with the application to obtain a factory license.

  • Form-1 (Particular Room in the Factory)
  • Certificate of Stability
  • Questionnaire to Form-1
  • NOC from the respective pollution control board
  • Process Flow Diagram
  • No Objection Certificate of Fire
  • No Objection Certificate from Local Authority
  • Building Drawing Copy
  • No Objection Certificate from Electrical Safety
  • NOC from the Explosive Department
  • Ownership proof related to factory building premises.
  • Notification of the Site
  • List of Directors
  • The Safety Report
  • On-Site Emergency Plan
  • Memorandum & Article of Association
  • Resolution for declaration of Occupied
  • Health & Safety Policy
  • Photograph of premises
  • Identity Proof
  • Treasury Challan/Bank Name
  • DIN/PAN Card

NOC from the Pollution Control Board  

Any entrepreneur  operating business in an establishment emitting pollutants in the water resources or surroundings is obligated to obtain consent for carrying out such business from the pollution control board as per section 25 of the Water (Prevention and Control of Pollution) Act, 1974, the 2 types of NOC that are required to be obtained by the owner are –

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Consent to Establish – This type of NOC is granted by the State Pollution Control Board prior to setting up the rice mill industry

Consent to Operate – This NOC must be obtained after the establishment of the rice mill industry, and the same is required to be renewed per the prescribed timeline. The following documents must be provided along with the application.

  • Site proposal/index
  • Geographical Map
  • Descriptive illustration of the different processes together with point sources of sewage emissions
  • Ambient Air Quality Report
  • A Document that highlights Diesel Generator capability in KVA
  • Details of instruments relating to Water Pollution Control/Air Pollution Control
  • Non-Objection Certificate from the DOI situated in respective states
  • NOC from Directorate of Industries Government Certificate by the DGTD (if it applies)
  • Details regarding the chemical reactions with mass equilibrium
  • Consent fees in the form of a Demand Draft (DD) drawn in favour of the respective PCB.
  • CA certificate or Undertaking on a stamp paper highlighting Capital Investment and Water Budget calculations

PFA & ESIC Registration

Any establishment comprising employees as per the prescribed threshold under various labour laws is mandated to obtain the PFA and ESIC Registration. It must be noted that the following criteria is required to be met in order to become eligible for this registration ie

  • Ten employees (in some states, 20 employees) 
  • Maximum salary of Rs. 21,000/- per month

FSSAI License

The business owner must obtain this license in any food business. The applicant must file the application with the appropriate authority, submit documents, and pay the requisite fees.

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The essential documents required for obtaining this license are

  • Address proof
  • Passport size photograph 
  • Business name & address
  • Details regarding the nature of business 
  • FSSAI Declaration form 

GST Registration

GST Registration plays a vital role when businessmen want to carry out interstate sales, as GST registration acts as an identification number for the business. The following documents are required for getting the GST Registration

  • PAN Card of the Company 
  • Certificate of Incorporation by MCA 
  • MOA / AOA (in the event of  private and public limited company)
  • Signatory’s appointment proof.
  • PAN card, Aadhar Card of Signatory’
  • PAN card of all directors (in the event of Pvt & public ltd co. )
  • Proof of Address of all directors (in case of a private and public limited company)


The high demand for rice in India makes the rice business quite lucrative for the businessmen making it important for them to be aware of all the licenses and formalities required to be fulfilled for setting up a rice mill industry in India which can be completed seamlessly with the highly qualified team of Enterslice.

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