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Surge in Government Investment to Prompt Growth of India Rice Milling Market

Dec 14, 2023 4:48 PM ET

Surge in Government Investment to Prompt Growth of India Rice Milling Market

Market Scope

As per an Extensive Research Report by Market Research Future (MRFR), India Rice Milling Market Information By Equipment, By Capacity, and Region – Forecast till 2032” The India rice milling industry size will be expanding from USD 0.31 Billion in 2023 to USD 0.40 Billion by 2032, at a rate of 3.51% between 2023 and 2032.

Rice is one of the most important food crops in India, where it is consumed by about 65% of the population. Since rice cannot be consumed in its raw state, processing becomes necessary. 

Rice milling, with an annual turnover of Rs 25,500 crore, is India’s oldest and largest agro-industry, occupying around 37% of the total cropped area. Of all the grains produced in the nation, rice makes up 44%. West Bengal is the biggest producer (16%), followed by Uttar Pradesh, Andhra Pradesh, and Punjab (13%, 12%, and 9.47%, respectively. Approximately 65% of the population receives food grains from the milling industry, which processes 85 million tons of paddy annually.

Making rice for domestic consumption is the main use of India Rice Milling. In India, rice is a staple grain that is eaten in a variety of ways, such as boiled or steamed, and as an ingredient in many regional cuisines. The rice milling industry produces a range of rice varieties, including parboiled, non-basmati, and basmati rice, to meet the varied needs of consumers.  

Market Competitive Landscape:

  • Buhler Group
  • MilTECH Machinery Private Ltd
  • Satake Group
  • Savco Sales Pvt. Ltd
  • Fowler Westrup
  • Hubei Bishan Machinery Co Ltd.
  • Adani Wilmar Limited
  • Mill Master Machinery Pvt Ltd.
  • GS International

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Market USP Covered:

Market Drivers:

Over half of India’s population depends on rice as their main food source and the majority of it is grown in the country. Although there are four main types of rice: Japonica, Indica, Aromatic (Jasmine and Basmati), and Glutinous rice, there are many more specialty types of rice that are grown all over the world.

The market for India rice milling is expanding due to consumer demand for certified equipment. This is so that it can meet the increasing demand for rice, which requires high-quality rice processing, which is ensured by certified machinery. Since rice is a staple food across India, there will likely be a continued high demand for it in the near future.  

Due to the growing demand for rice brought about by population growth, numerous rice processing facilities opened new rice mills, spurring market expansion. India ranks among the top exporters of rice and is the biggest producer and exporter of Basmati rice. One of the oldest agro-processing industries in the nation is rice milling. 

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Market Restraints:

A lack of warehouse space, a large initial loss, and crop failure are some of the things that may threaten the rice milling industry.

Market Segmentation

The types of rice milling machinery in India include Length Grader Machinery, Paddy Separator Machinery, Rice Whitening Machinery, Pre-Cleaner Machinery, and more.

Capacity-wise segments are 1 to 10 Ton, 10 to 20 Ton, and More Than 20 Ton.

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Country Insights

India has witnessed a surge in investments towards the modernization and upgrading of rice mills, with the government and private sector contributing significantly to the advancement of technology in rice mill machinery. Notably, businesses like Buhler India have committed large sums of money to bring better technology to the market.

The modernization of food processing facilities, including rice mills, has received active support from the Indian government as well. The government contributes financially by paying 25% of the price of technical civil works as well as plant and machinery. The financial assistance is capped at INR 50 lakhs, and in challenging regions such as Jammu & Kashmir, Himachal Pradesh, and Sikkim, it goes up to 33% and a maximum of INR 75 lakhs.

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