Flour Mill Project Report, Subsidy, Cost, Loan, Permission

Mini Flour Mill Project Report: Flour is used in the daily process for making chapatis, roti naan, puri, bread any more. Flour is the essential raw material for many of them which consist of more amount of 90% wheat.  Flour is the predominantly used in the food items on the daily basis as it is the most essential product for daily consumption in India.

A step by bstep guide to flour mill project report, subsidies

The grains which have to be made into the flour should be cleaned before grinding. After that the break is separated by sieving to very fine particles or intermediate particles, and other coarse particles. The grains which can be floured in the mill are rice, wheat, millets, bajra, etc. which are used in the basis, as the four is having a great demand in the market. Hence it needs the mill to get all the type of grains in the form of flour. This process of flouring is done 5 to 6 times thoroughly to get the fine flour at the end. Now let us get  into the details of flour mill project report.

Mini flour mill project

There are 812 roller flour mills in India which producesnearly 25 million tonnes, of milled cereal products worth of Rs. 1000 crores. Flour mills should have a minimum capacity of 30TDP of raw materials per day to maximum of 1000 TDP.The capacity suggested for mini flour mill to start up is having 30 tonnes of raw material crushing capacity per day. The market for the branded atta has been increased to Rs. 1500 crores as it is the essential product in daily basis.

Flour is used in making many food items such as Chapaties, Puries, Parotha and otherroasted cereal based products. Wheat flour or Maida is a basic raw material for preparingmany bakery items such as bread, biscuits, and cakes. Sooji or Ravva is used in many tiffin items or in sweetmeat products.

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How to Start a Flour Mill Business in India.
How to Start a Flour Mill Business in India.

There are no pollution problems for this unit equipment except dust from the flour,which may damage the plant andmachinery to. It adversely affects the health of workers, for this cyclonecan be used toseparate dust in the mill.The miller should be made aware of about the proper selection of motors and energy requirement of the milling system.

Requirementsto establish flour mill project

These are major requirements to establish a mini flour mill project. These include-

  1. Land of minimum 200 sq. mtr.
  2. Build up an area for the plant and machinery along with the storage bins for grains.
  3. Place for construction of office, laboratory etc.
  4. The machinery equipment’s includes the following things which are single bucket elevator without belt and bucket, Reel machine, Rotoryseperator with aspiration channel, Scourer machine with aspiration channel, Intensive dampner, Rotometer, De-Stoner without fan & cyclone, Indent cylinder, Screw conveyour, Dust cyclone with airsealdia, L.P. Fan for Ist Cleaning, L.P. Fan for Main Cleaning, L.P. Fan for DE stoner, L.P. Fan for final Cleaning, Magnets 6”*12”, and Silogate.
  5. Roller Mill body, Rolls diameter 250 x 1000 mm (Indian), Roll Grooving & spindle cutting, plansifter 8 feed /16 sec, purifier, bran – finisher, pneumatic lifts, Tripple worm 8 mt., L.P. Fanpurifier, Dust cyclone diameter, H.P. Fan, Supper cyclone, bolting cloth lot, Misc. accessories such as inspection, cover & joint range etc., electrical motors, electric pannel board fitted with starter main switches, cables, cable fittings, volts and AMP meters, AC.B capacitors, Reduction gears standard make, V-Groove, Pulleys, Couplings, V-Belts, ErrectionMaterial such as angle, Channel, Sheet, Iron, Tools and other equipment required during Errection, Consumable items such as Nut, Bolt, Gas, and Welding Rods, Namda, Fevicol, Weighing scale, errection and Consultancy charges.

Costs involved in establishing a mini flour mill project

The following are the costs involved in establishing a mini flour project. These include-

  1. Costs involved in land and office establishment is Rs. 50,000
  2. Costs involved in purchasing machinery and equipment’s in milling section is Rs. 3,50,000
  3. Costs involved for pre-operative expenses is Rs. 20,000
  4. Costs involved for wages and salaries is Rs. 50,000
  5. Costs for raw materials purchase is Rs. 50,000
  6. Costs involved for other utilities such as power and water requirements is Rs. 30,000

Total costs involved is Rs. 6,00,000.

Licensing and permissions required to establish a flour mill

Shop Act or Trade License

To establish a flour mill in India, you need to apply for a Shop Act License from the local municipal authority in order to carry out the business operations. This licence helps to regulate the workers, working conditions along with working hours including leaves, holidays, wages etc. of the employees and helps the business to run in a smoother way.

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Udyogaadhaar registration

Setting up a flour mill business is classified as a small business and therefore needs to be registered under UdyogAadhaar which is a registered for micro, small, and medium enterprises (MSMEs). This is considered as recognition even for small scale business. .

GST Registration for mini flour mill

Every business, including the flour mill, needs to show the taxes at any point of business deals. Hence to be subjected and handle a single uniform taxation structure the business needs to be registered under Goods and Services Tax which is the common GST scheme.

Apart from these registrations, you need to apply for BIS certification as well as tax liabilities. This registration does not demand any pollution clearance; however, it is better to check with the State Pollution Control Board of the local area where you are going to start your business.

Availability of loans and subsidies for establishing a mini flour mill project

As we know that there is a huge demand for four in the market and requires very less capital investment to start the business, it drives the banks to produce loans easily to start a flour mill. It is a not even a gender specific business idea and can be opened in a small space. Thus it helps the small entrepreneurs to start in a small scale. Banks provide 60% loan on the machinery cost to establish the business.

List of banks that provides loans and subsidies for establishing flour mill project are

State Bank of India
Canara Bank
Punjab National Bank
Andhra Bank
Central Bank of India
Bank of Baroda
State Bank of Bikaner & Jaipur
UCO Bank
Bank of India
North Eastern Development Finance Corporation(NEDFi)

This bank supports you with loans and subsidies in the form of first part and second part release.

Subsidies and eligibility for the scheme of mini flour mill establishment

Government provides 25% of the cost of the plant and machinery costs, civil works which are subjected to maximum of Rs.50 lakhs in general areas, but under tribal development project it provides 33%  upto Rs.75 lakhs in areas such as Sikkim, Jammu and Kashmir, Himachal Pradesh, north-eastern states, Uttarakhand, etc. The grants, beneficiaries, along with affidavits need to be submitted. Firms, cooperatives, companies and PSUs are eligible for applying these.

Disbursement of grant or subsidies

The financial assistance should be done in two equal instalments which would be released in two equal parts term loan one and two in 50% and 50%.

Documents need for the schemes and subsidies for mini flour mill

These are the documents required for the schemes and subsidies. These include-

  1. An agreement on a non-judicial stamp paper of Rs.100.
  2. Affidavit on a non-judicial stamp paper of value Rs.100.
  3. Non-drawal of MFPI grant paper.
  4. Proof that you have nor applied before for this scheme or subsidy or loan etc. from central government or department or ministry or agencies or state government as per the rule 209.
  5. MFPI for the grain milling sector for availing the grant.
  6. Utilization certificate by the plant unit produced in the form of GFR 19A.
  7. You can also avail term loan linked application for getting the grant.
  8. Liability from the lending institutions under the scheme.
  9. 15% of the total outlay for the scheme.

The loan and the subsidy will be sanctioned as per the rules and norms of the government for the proper end-use of the lands and schemes.

Conclusion of mini flour mill project

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That’ all folks about mini flour mill project report, cost and subsidies. You may be interested in Growing Spinach in Raised Beds.


  1. I have 10 acres of land which gets Waterlogged between June and Nov at intervals at a stretch of 20-30day when there are heavy rains. What farming can I do.

    • Sir,
      Not Mandatory by MOFPI but Bank required for their collateral security. so if you have other NA property for collateral security then no problem. For more details please revert.

  2. Dear sir .i want start mini flour mil so please you clearly full project the flour mil i have 900 sqar fit open land

  3. Respected sir, plz help me, how to start mini atta mill with subcidi. Please tell me all process step by step. Thanks alot.

  4. Dear Sir,
    I want to start mini flour mill 10T/day in Uttar pradesh please share me procisure for same and loan guide lines and about required licenses.

  5. Sir, I want to open my mini flour mill (aata chakki) and I have enough space for it. For that, I need to apply for loan from government bank.So, along with project report,please suggest me how to apply for loan in detailed account through PMEGP(khadi India)asap.
    Thank you

  6. Respected Sir,
    I am an ex-serviceman and would like to do business through MSME at Sikar in Rajasthan. I would like to open Atta Mill, Dal Mill and Musterd oil and masala udhyog. I have sufficient land and space for these. Request forward me the project for the above business.

  7. Hello Sir, a very interesting project report on flour mill. Pandemic has taken away our employment and now need to find solutions for the next Journey. Instead of looking for a new job, I am interested to start my own biz. This flour mill sounds to be good. I am having building covering 2080 square feet which is about 200 sq meter

  8. Hi sir , i read you article and i need to know more details about it as i m interested in establishing a flour mill plant i need ur guidance..

  9. Dear Sir,
    We want to start mini floor mill with packaging plant .But having 1200 sqft own land.Can i start this project on this land as well as can we take loan against this land . Also we need all permission detail for same .

  10. Sir, is there is any procedure to get subsidy on row material(wheat). Because row material cost is same as machinery Or other things. Kindly help me to know it better…

  11. I want to put an Alpesa atta mill in Balasore , Odisha . Please help me with feasibility report , bank finance report , subsidies on machinery & civil work and raw materials

  12. i want to start fully automatic plant for wheat flour in gujarat or maharastra pls guide me about govt subsidy or extra benefit

  13. I want to start fully automatic flour mill plant 30-50 ton per ton. I want full plant in stain steel so if anybody knew about it please tell me about it

  14. I have 9000sft land in Mainpuri Uttar Pradesh and 6000sft in Uttrakhand. I want to establish a flour plant mini-scale. kindly suggest where it should be feasible and profitable to establish. kindly reply. Thank you

  15. if in the state of karnataka any customer purchased floor mill machine domestic use so can he get any subsidy.kindly suggest your advice.thanks


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