Profit Margin In Rice Mill rice

The Rice mill business is one of the best options to make maximum money. The profit that you can get from the rice mill business is relative. It depends on various factors like the location of the rice mill, modern infrastructure, size of operating capacity, layout plan, and so on. But, when considering the profit margin of it, we can consider the gross profit margin in the rice mills as 20%.

What is the Profit Margin in Rice Mill? Plan & Increase Your Profit

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. When it comes to milling systems, a rice milling system can be in the following process.

  • one-step process- removing husk and bran in one process.
  • two-step process- separately removing husk and bran.
  • multi-stage milling- rice undergoes a number of different processing steps.
    Such as, pre-cleaning, dehusking, paddy separation, whitening, grading and separation of white rice, mixing, mist polishing and finally weighing of rice.

So, Before you start your business, you need to make the right arrangements. In order to run the mills without any interruption, you need to make the right arrangements for the availability of power and electricity as you already know. When you choosing your machinery, make sure to choose them depending on your investment in the rice plants.

Not only that, to complete your rice mill set up, you may need some rice mill machinery. It means, to make a profit in your rice mill business, you have to expend some money on it.
A modern rice milling plant is consist of,

  • Pre-cleaning: removing all impurities unfilled grains from the paddy
  • De-stoning: separating small stones from the paddy
  • Husking: removing the husk from the paddy
  • Husk aspiration: Separating the husk from the brown rice
  • Paddy separation: separating the unhusked paddy from the brown rice
  • Whitening: removing al or part of the bran layer and germ from the brown rice

Moreover, there are some optional items, that needed to setting up a complete rice mill. They are,

  • Polishing: developing the appearance of rice by removing remaining bran particles and by polishing the exterior of the milled kernel
  • Shifting: separating small impurities or chips from the milled rice
  • Length grading: separating small and large broken from the head rice
  • Color Sorting: remove bad rice, black rice, yellow rice, half-husked rice, etc
  • Blending: mix head rice with a predetermined amount of broken, as required by the customer
  • Weighing and bagging: preparing milled rice for transport to the customer

However, the cost of setting up a modern rice mill plant, with all these types of machinery is quite high. But with the right steps, you can easily get a high return on the profit margin in a rice mill. In fact, the best way to make a profitable rice milling business is by choosing a great location, modern machinery, and infrastructure. Not only that, when choosing your machines, make sure to check their capacity.

Plan your rice mill profit from the beginning

To go a long way in your business and earn a better profit, you may need to supply insufficient funds. In order to resolve this problem, the following analysis will help you.

How much money do you have?
How much money ill you need to start your business?
Money you will need to stay in business

In order to resolve the above problems, first, you have to estimate all of your start-up costs.
Estimate your start-up cost with the following list.

  • Cost for Items for service, construction, manufacturing
  • Cost for Decorating and remodeling, fixtures and equipment, service and supplies
  • Legal, professional fees, license and permits, telephone and utility deposits, Insurance costs
  • Costs for advertising and marketing

After that, consider the money you will need to stay in the business. In order to do estimate this simply, we can divide into immediate costs and future costs.

Immidiate costs:

  • Living costs
  • Employee ages
  • Rent
  • Advertising
  • Supplies
  • Utilities
  • Insurance
  • Taxes
  • Delivery
  • Maintainance
  • Miscellaneous

After getting the sum of these expenses, you may able to get the monthly expense.

By adding the total start-up costs, to the total expenses for three months, you can get the sum of money that you need to start and operate your rice mill business for three months. Moreover, by subtracting the totals of the lists, from the cash available you can determine the amount of additional financing. (if there is any)

Accordingly, you may think that it is quite difficult to earn some profit from a rice milling business. Though you have to face some challenges before starting the rice mill business, after you started it, you may go a long path with the correct attitude and steps. As people continuously use rice as a staple food, the demand for the rice mill business is high.

Uditha Sanjaya
Uditha Sanjaya is a Tech communicator, video creator, and entrepreneur, having founded Fuozo Solutions, Hackinglk, FounderActivity.com, and DEVOLUXE.com.. He’s a host of FounderActivity Podcast and Hackinglk. you can find him on YouTube, Twitter, and, if you really want to, Facebook.

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