Executive summary — start here.
The Auto Rice Mill business is profitable in Bangladesh with the right scale and location.
Therefore this profile gives clear numbers, tables, and a step-by-step cost plan.
Most important: read the cost tables to know the capital you need.
Because prices and exchange rates vary, I used recent market ranges. (emergingrating.com)
Why an Auto Rice Mill matters.
The demand for processed rice remains steady across Bangladesh.
Therefore a modern auto rice mill captures value that farmers miss.
Most important, you buy paddy and sell polished or parboiled rice at better margins.
Besides that, by-products like rice bran and husk can add revenue. (UniversePG)
Project scope and three model sizes.
Most important: choose a capacity that matches your market and capital.
Therefore I present three practical options: Small, Medium, and Large.
Small suits local clusters, medium suits district-level traders, and large serves regional buyers.
Because each size needs different land, machines, and working capital, costs change widely.
Capacity models (quick view)
- Small: ~2.5–3 ton/hour — roughly 20–25 ton/day.
- Medium: ~5 ton/hour — roughly 40–50 ton/day.
- Large: ~10 ton/hour — roughly 80–100 ton/day.
These ranges follow common machine lines and market practice. (Alibaba)
Key assumptions used in numbers below.
Most important: exchange rate is 1 USD = ৳121.8 (market average used).
Therefore dollar prices from suppliers convert to BDT using that rate. (BB)
Other assumptions: working days 300/year, average paddy price and milling yield vary.
Because yields depend on rice variety and technology, I used conservative recovery rates. (UniversePG)
Capital cost breakdown (BDT) — summary table.
Most important: the table shows estimated fixed capital for each model.
Therefore review it and pick the model that fits your budget.
| Item / Model | Small (25 TPD) ৳ | Medium (50 TPD) ৳ | Large (100 TPD) ৳ |
|---|---|---|---|
| Land (purchase or long lease, 0.5–2 acres) | 1,200,000 | 3,000,000 | 6,000,000 |
| Civil works & buildings | 800,000 | 2,500,000 | 6,000,000 |
| Machinery & equipment (incl. parboiling) | 3,000,000 | 9,000,000 | 40,000,000 |
| Installation & erection | 300,000 | 900,000 | 3,000,000 |
| Utilities (electric wiring, generator) | 250,000 | 750,000 | 2,000,000 |
| Vehicles & material handling | 400,000 | 1,200,000 | 4,500,000 |
| Office furniture & IT | 120,000 | 250,000 | 600,000 |
| Pre-operating expenses & licences | 150,000 | 400,000 | 1,000,000 |
| Contingency (7%) | 350,000 | 1,050,000 | 4,250,000 |
| Total Fixed Capital (approx) | 6,570,000 | 19,050,000 | 67,350,000 |
Most important note: machinery cost varies widely by brand and automation.
Therefore the ranges above reflect local supplier quotes and import offers. (RayhanS)
Machinery detail and price guidance.
Most important: machinery is the single largest capital item.
Therefore choose reputable suppliers and check after-sales support.
You can buy complete auto rice mill lines from local dealers or import them.
Because machines from China or India often cost less, factor freight and taxes. (Alibaba)
Typical machinery set for an auto rice mill includes:
- Paddy cleaner and dryer.
- Parboiling line (soaking, steaming, drying) — optional for parboiled rice.
- Husker (hull remover) and paddy separator.
- Whitener/polisher.
- Grader and color sorter (optional for high-quality rice).
- Rice bran handling and husk handling.
- Control panels and conveyors.
Example price hints (converted using the exchange rate above):
- Small complete set (2.5–3 TPH): USD 20,000–35,000 → ৳2.4M–4.3M. (hnjinzhengly.en.made-in-china.com)
- Medium set (5 TPH): USD 40,000–90,000 → ৳4.9M–10.9M. (Alibaba)
- Large parboiled automatic plant (50–100 TPD): USD 200,000+ → ৳24.4M+. (cbecl.com)
Working capital and monthly operating cost (BDT).
Most important: working capital keeps the mill running smoothly.
Therefore budget for paddy inventory, fuel, power, labour, and spare parts.
Below are typical monthly figures for each model.
| Item / Model | Small (monthly) ৳ | Medium (monthly) ৳ | Large (monthly) ৳ |
|---|---|---|---|
| Paddy inventory (15 days) | 3,000,000 | 7,500,000 | 20,000,000 |
| Fuel / electricity | 120,000 | 400,000 | 1,500,000 |
| Labour & staff salaries | 120,000 | 350,000 | 1,200,000 |
| Maintenance & spares | 50,000 | 150,000 | 600,000 |
| Packaging & logistics | 80,000 | 250,000 | 1,000,000 |
| Misc & admin | 40,000 | 80,000 | 300,000 |
| Total monthly operating | 3,410,000 | 8,730,000 | 24,600,000 |
Most important: paddy inventory dominates working capital.
Therefore closer procurement relationships reduce financing pressure.
Because rice prices fluctuate, keep a 15–30 day stock buffer. (emergingrating.com)
Production, yield and revenue example (annualized).
Most important: revenue depends on recovery rate and sales price.
Therefore use conservative recovery of 67% polished rice from paddy. (UniversePG)
Example — Medium mill (50 TPD)
- Annual paddy processed ≈ 50 t/day × 300 days = 15,000 t/year.
- Rice recovery 67% → rice output ≈ 10,050 t/year.
- Average farm paddy purchase price (example) ৳33,000 /ton → paddy cost ≈ ৳495,000,000.
- Average polished rice sale price (example) ৳45,000 /ton → gross revenue ≈ ৳452,250,000.
Most important: here raw paddy cost exceeds gross rice revenue because of yield and by-product credits.
Therefore real margin calculation must include by-product sales.
By-products (bran and husk) may offset significant cost. (UniversePG)
Simple pro-forma annual P&L (Medium model, illustrative).
Most important: this is a directional estimate, not a bankable forecast.
| Item | Amount (BDT) |
|---|---|
| Gross rice sales | 452,250,000 |
| By-product sales (bran, husk) | 30,000,000 |
| Total revenue | 482,250,000 |
| Paddy purchase cost | 495,000,000 |
| Milling & utilities | 18,000,000 |
| Labour & admin | 4,200,000 |
| Depreciation & finance cost | 6,000,000 |
| Packaging & logistics | 12,000,000 |
| Total costs | 535,200,000 |
| Estimated Net (loss)/profit before tax | (52,950,000) |
Most important: this shows thin margins at current sample prices.
Therefore a medium mill needs optimization, value-addition, or higher sale prices.
Because parboiled rice sells at a premium, adding parboiling can improve margins. (UniversePG)
Ways to improve profitability.
Most important: add value with parboiling and branding.
Therefore process parboiled rice for longer shelf life and higher price.
Besides that, add rice grading and pack in retail bags to capture retail margins.
Because by-product processing (oil extraction from bran) adds revenue, explore it.
Lowering procurement cost via direct contract farming raises margins.
Also, reduce downtime and energy cost with efficient dryers and variable speed drives.
Market and sales channels.
Most important: identify buyers early and sign offtake agreements.
Therefore target wholesalers, supermarkets, and institutional buyers.
Besides local traders, consider exports if quality and HACCP standards meet buyer needs.
Because Bangladesh exports selected rice types, certification and consistency are key. (emergingrating.com)
Licences, legal and environmental matters.
Most important: obtain necessary trade, factory, and environment permits.
Therefore register business with RJSC and obtain local municipality permissions.
Wastewater from parboiling needs treatment.
Because husk handling creates dust and smoke, abide by ambient air norms.
Check incentives or tax items for agro-processing with local authorities.
Financing and bankability.
Most important: banks consider machinery and cash flow for lending.
Therefore prepare a full project report and detailed cash flow.
Typical financing mixes can be 60% debt and 40% equity for fixed assets. (Scribd)
Consider supplier credit for machinery, and working capital facilities from local banks.
Risk factors and mitigation.
Most important: paddy price volatility is the biggest risk.
Therefore sign advance purchase agreements with farmers.
Other risks include machine breakdown, power interruption, and quality inconsistency.
Because human resources matter, train staff and arrange maintenance contracts.
Diversify buyers to avoid dependency on a single customer.
Implementation timeline (typical).
Most important: plan 6–12 months before commercial operation.
Therefore allocate time for land, construction, machinery import, and staff hiring.
Lead time for imported machines may be 2–4 months. (hnjinzhengly.en.made-in-china.com)
Quick checklist before you start.
Most important: validate local paddy supply and buyer demand first.
Therefore verify transport accessibility and electricity reliability.
Get at least three machinery quotes.
Negotiate warranty and spare-parts availability.
Prepare environmental and safety plans.
Final recommendation — concise.
Most important: start with a clear capacity matched to local supply.
Therefore a small or medium plant reduces capital risk and builds market trust.
Scale later once you secure buyers and stable cash flow.
Because machinery price and yield matter most, invest in reliable equipment. (Alibaba)
Appendix — sources and notes.
Most important: consult supplier quotes and industry studies before investing.
Key references used in this profile: industry reviews and supplier price pages. (emergingrating.com)
You can use this profile as a working blueprint.
If you want, I can convert it into a bank-ready project report.
Either way, start by collecting 3 machinery quotations and confirming local paddy flow.
If you need a project profile for bank loan, please contact us.