29 Mar 2022, 13:19 — 7 min read
Rice is a staple source of food throughout Asia and hence is always in high demand. As a result, many entrepreneurs have realised the immense business potential of rice. However, like with all other businesses, there are certain things that people need to consider before they start a rice business. Since rice is a widely consumed commodity, the government has put in place several quality checks to ensure that only hygienic and high-quality rice makes its way into the market. In this article, we’ll go over everything you need to know before starting a rice business in India.
Almost 70% of the world’s population consumes rice as their staple food. Every year, approximately 40,000 varieties of rice are harvested all over the world, indicating the commodity’s diverse demand. In India itself, rice is a staple that boasts of daily consumption in the south, north-eastern and eastern parts of the country. This is why starting a rice business in India is an excellent choice.
Did you know? We are the second-largest producers and consumers of rice globally. Also, India produced 7.5 million tonnes of basmati in the year 2019-20, of which 61% was exported!
India’s fertile soil, suitable weather conditions, and large quantities of arable land make it perfect for growing rice. As a result, the rice industry serves as the backbone of our agricultural sector. We are also the world’s largest exporters of rice by volume and most preferred as well. This reputation of our country is responsible for making the rice business an excellent option for budding entrepreneurs. Let us now take a look at what types of rice businesses you can start in India.
There are several avenues you can consider when you opt to start a rice business in India. Some of the most common rice-related companies in India are engaged in the following:
To set up a rice farm, you will need a large parcel of land, a good source of water and access to labour. Additionally, you will have to be well-versed in the agricultural requirements for rice, and keep a close watch on the crop throughout the year. This is a more capital-intensive option and one that requires a lot of research. You will also have to buy the best seeds, invest in fertilisers and look into purchasing advanced farming equipment if you wish to produce large quantities of rice.
On the other hand, rice dealerships, wholesale, resale, retail and milling does not require such laborious research or extensive capital. Rice milling will require a considerable amount of initial capital infusion to set up an establishment and buy the equipment. After the set-up, however, you will be able to use the mill for decades without additional costs except for routine maintenance, unlike farming, where additional costs arise annually.
Dealerships and resale markets serve as intermediaries by connecting farmers to consumers, they do not require heavy capital infusion and are also very lucrative in terms of returns. All that said, choose the type of rice business depending on your interests and resources.
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Posted byVakilsearch Staff
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22 Jun 2022, 10:30
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