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Business ideaFood processing

Mini Dal Mill Business

मिनी दाल मिल व्यवसाय · मिनी डाळ मिल व्यवसाय

Buy whole tur, chana or moong, clean, split and polish it on a mini dal mill, and sell dal in bags to wholesalers, shops and caterers.

₹10–25 lakhPrices not yet confirmed with suppliers

Investment

₹12.2 lakh

Profit a month*

₹43,000

Space
1,500 sq ft
Staff
3 + you

*Operating profit before the loan instalment in year 2, at the assumed sales level. Change the assumptions in the calculator below.

A mini dal mill buys whole pulses such as tur, chana, moong or urad from farmers and mandis, cleans and grades them, loosens the husk by pitting and drying, then splits and polishes the grain into dal. The husk and broken pieces are sold as cattle feed. A small unit runs on a 3–5 HP machine with a cleaner and a drying yard. It suits someone in a pulse-growing area who understands grain buying. This is a trading-style business: the whole grain is nearly all of the cost, the margin per kilo is small, and profit depends on recovery percentage and on buying at the right time after harvest. The hard parts are large working capital for seasonal stock, price swings while you hold it, recovery losses, and competition from big automatic mills.

Skills needed: Grain quality and moisture judgement, milling adjustments for good recovery, storage practice, and mandi dealing.

Profit calculator

Change the numbers to match your town

320 kg/day: Tur dal in bags

Add-ons

Total investment

₹12.2 lakh

Your own money

₹1.22 lakh

Subsidy

—

Bank loan

₹11 lakh

Mudra Tarun Plus

A typical month in year 2

Sales₹8,96,000
Raw material & packing−₹7,85,600
Electricity−₹10,440
Salaries−₹34,650
Rent−₹12,600
Other running costs−₹9,975
Operating profit₹42,735
Loan instalment (EMI)−₹19,708
You keep each month₹23,027

After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.

Break-even at 30% capacityDSCR 4.09 (banks like ≥1.5)Payback ≈ 3.1 years
  • Loans above ₹10 lakh under Mudra (Tarun Plus) are only for borrowers who have repaid an earlier Tarun loan.

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Investment breakdown

Machinery & equipmentPrice
Mini dal mill, 5 HPSellers list 100–400 kg/hr; this profile assumes about 100 kg of dal an hour₹1,50,000₹80,000–₹1.85 lakh
Grain cleaner and grader₹60,000
Dal polisher₹50,000
Drying yard tarpaulins, trolleys and bins₹30,000
Platform weighing scale and table scale₹14,000₹9,000–₹20,000
Bag stitching machine₹7,000₹5,000–₹12,000
Electrical panel, foundation and dust control₹40,000
Pallets and store racks₹20,000
Mechanical dryer for monsoon workingadd-on₹2,00,000
Machinery & equipment (without add-ons)₹3,71,000
FSSAI, Udyam, mandi and other registrations₹10,000
Three-phase connection and wiring₹40,000
Bag printing and brand design₹15,000
Trial runs₹8,000
Working capital 25 days of raw material, 10 days of credit to buyers, 1 month of expenses₹7,78,680
Total project cost₹12,22,680

Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.

Cost and margin per unit

Tur dal in bags (per kg)₹
Whole tur (1.33 kg at ₹75/kg at 75% dal recovery), less husk and chuni sold as feed96.70
Bags and stitching1.50
Material cost98.20
Selling price112.00
Margin before running costs13.80 (12%)

Bulk rate. Mandi pages in 2026 showed whole tur at roughly ₹63–81/kg and tur dal at ₹100–122/kg, with the two moving together. Machine sellers quote 70–80% recovery. The by-product credit is an estimate. Re-enter current rates in the calculator.

Space, power and staff

1,500 sq ft

Rented shed · rent ≈ ₹12,000/month

Small-town or village-outskirts rent for a shed with an open drying yard. Needs a dry, pest-free store for grain and dal.

10 kW, three-phase

Bill ≈ ₹18,000/month at full capacity

3 staff + you

  • 1 × Mill operator: ₹13,000
  • 2 × Drying, loading and packing helpers: ₹10,000

Licences and registrations

FSSAI registration / licence

mandatory

When: Before you sell · Cost: ₹100/yr for basic registration; state licence ₹2,000–5,000/yr above the turnover limit

At the sales assumed here you are likely above the basic-registration limit. Check the current limit on foscos.fssai.gov.in.

Mandi (APMC) licence

if applicable

When: Before buying pulses in a regulated market · Cost: Varies by state

Udyam registration

recommended

When: Before applying for a loan · Cost: Free

Apply only on udyamregistration.gov.in.

GST registration

if applicable

When: When turnover crosses the registration limit; at this scale it will · Cost: Free

Loose pulses and pre-packed, labelled pulses are treated differently for GST. Confirm with a CA.

Stock limits on pulses

if applicable

When: Whenever the government imposes them · Cost: None

The government has at times set limits on pulse stocks held by millers and traders and required stock disclosure. Check for current orders.

Pollution control consent

if applicable

When: Before starting, if your state lists dal mills · Cost: Varies by state

How it works

  1. Buy whole pulses; check moisture, size and damage.
  2. Clean and grade.
  3. Pit the grain lightly, treat with a little oil and water, and dry so the husk loosens.
  4. Dehusk and split in the mill; separate dal, husk and brokens.
  5. Polish and grade the dal.
  6. Weigh, bag and stitch; sell husk and chuni as cattle feed.

Loan route

Mudra loan (Tarun Plus)

Own money ₹1.22 lakh · Loan ₹11 lakh · EMI ≈ ₹13,154

The loan includes a cash-credit limit of ₹5.36 lakh for stock and credit to buyers. Only interest is paid on it; the EMI is on the remaining term loan.

No collateral, no subsidy. Only if you have taken and fully repaid an earlier Tarun loan.

How Mudra works

PMEGP (new units)

Subsidy ₹1.83 lakh (general, urban) to ₹4.28 lakh (special category, rural). EMI ≈ ₹8,878–₹4,602.

Own money 5–10%. Applicant must be at least 8th pass for this project size. Subsidy is held as a 3-year deposit, then adjusted against the loan.

How PMEGP works

Assumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.

No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).

Who buys and how to sell

Buyers

  • Grain wholesalers and dal traders
  • Kirana shops
  • Caterers, hotels, messes and hostels
  • Farmers bringing their own pulses for milling
  • Cattle-feed buyers (husk and chuni)

Ways to sell

  • Wholesalers in the grain market
  • Direct supply to shops and caterers
  • Job-work milling for farmers at a per-kilo charge
  • Own-brand small packs

Season: Buying is seasonal: tur arrives roughly December to March. Milling is easiest in dry months; drying is difficult in the monsoon.

Competition: Large automatic dal mills with better recovery, and traders bringing dal from major milling centres. A small mill competes on fresh local dal and farmer job work.

Risks and how to handle them

Pulse prices fall while you hold a season's stock

Buy in stages, sell regularly and avoid speculating with borrowed money.

Low recovery or too many brokens

Dry the grain properly, set the rollers carefully and track recovery for every lot.

Infestation or dampness in storage

Store on pallets in a dry shed, fumigate as permitted and rotate stock.

Working capital runs short in the buying season

Arrange a cash-credit or warehouse-receipt loan before harvest.

Tips from the trade

  • The numbers on this page assume stock and credit are financed by a cash-credit limit, not the term loan; you can switch this in the calculator.
  • Recovery percentage decides the profit; one or two points make a large difference.
  • Job-work milling for farmers earns a steady charge with no stock risk.
  • Selling husk and chuni promptly matters; it is a real part of the margin.

Questions people ask

How much dal comes from 100 kg of tur?+

Machine sellers quote 70–80 kg of dal with a few kilos of brokens; the rest is husk and powder. The actual figure depends on the grain, drying and machine setting.

Can one mill process different pulses?+

Yes, with changes in roller setting and sieves, most mini mills handle tur, chana, moong, urad and masoor. Recovery and method differ for each.

How much investment is needed to start a mini dal mill business?+

About ₹12.2 lakh for a small unit: ₹3.71 lakh for machinery and equipment, ₹73,000 for set-up costs and ₹7.79 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.

How much profit can a mini dal mill business make per month?+

At 40% of capacity, sales are about ₹8.96 lakh a month and operating profit about ₹42,735 before the loan instalment. After an EMI of about ₹19,708, the owner keeps about ₹23,027 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.

Which machines are needed for mini dal mill?+

Mini dal mill, 5 HP (₹80,000–₹1.85 lakh); Grain cleaner and grader (about ₹60,000); Dal polisher (about ₹50,000).

Can I get a Mudra loan or PMEGP subsidy for mini dal mill?+

With a project cost of about ₹12.2 lakh, the bank loan of about ₹11 lakh falls under Mudra Tarun Plus. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹4.28 lakh here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.

What licences are required for mini dal mill?+

Mandatory: FSSAI registration / licence. Depending on your set-up you may also need: Mandi (APMC) licence, Udyam registration, GST registration, Stock limits on pulses, Pollution control consent.

Similar businesses

Sources

Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.

Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.