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.
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 town320 kg/day: Tur dal in bags
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.
- Loans above ₹10 lakh under Mudra (Tarun Plus) are only for borrowers who have repaid an earlier Tarun loan.
Need this for a bank loan?
Turn these numbers into a full project report: cost of project, means of finance, 5-year profit and loss, balance sheet, repayment schedule, DSCR and break-even.
Make my project reportInvestment breakdown
| Machinery & equipment | Price |
|---|---|
| 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 feed | 96.70 |
| Bags and stitching | 1.50 |
| Material cost | 98.20 |
| Selling price | 112.00 |
| Margin before running costs | 13.80 (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
mandatoryWhen: 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 applicableWhen: Before buying pulses in a regulated market · Cost: Varies by state
Udyam registration
recommendedWhen: Before applying for a loan · Cost: Free
Apply only on udyamregistration.gov.in.
GST registration
if applicableWhen: 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 applicableWhen: 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 applicableWhen: Before starting, if your state lists dal mills · Cost: Varies by state
How it works
- Buy whole pulses; check moisture, size and damage.
- Clean and grade.
- Pit the grain lightly, treat with a little oil and water, and dry so the husk loosens.
- Dehusk and split in the mill; separate dal, husk and brokens.
- Polish and grade the dal.
- 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 worksPMEGP (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 worksAssumes 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.
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Sources
- IndiaMART: dal and pulse mill machine prices
- IndiaMART: Natraj Engineering Works (mini dal mills)
- IndiaMART: Sujata Engineering (dal mills)
- Commodity Online: arhar (tur) dal mandi prices
- aCrop: tur mandi price, Majalgaon APMC
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.