What is a dal mill project report?
A dal mill project report is a detailed project report for a unit that cleans, dehusks and splits whole pulses such as tur, chana, moong and urad into dal. It covers the milling process, machinery, raw pulse buying, dal recovery, project cost, five-year projections, DSCR and break-even that a bank or subsidy office checks.
Pulse traders, farmer producer companies and first-time millers use it to size the mill and apply for a term loan, PMEGP or PMFME; lenders use it to judge whether the mill can repay.
Also known as: dal mill pulses project report, pulse processing unit project report, dal mill business plan, tur dal mill project report.
What a bank checks in a dal mill project report
A dal mill buys an expensive raw material and sells a staple on a thin margin. Lenders therefore look hardest at raw pulse cost, margin and the cash tied up in stock. These are the values in our sample report and why each one matters.
Whole pulses are most of the cost. A report that shows a much lower share is usually assuming a dal price or recovery the mill will not get.
Dal is sold close to its cost. A one or two point fall in recovery can wipe out most of this margin, so banks test it.
Pulse stock is the largest current asset in the sample. Mills that buy heavily at harvest hold more, and the cash credit limit has to cover it.
Debt service coverage ratio: cash available for each rupee of loan repayment. The sample's lowest year is 2.04, a clear margin above 1.
Values are the assumptions and ratios in our illustrative sample. Your report uses figures for your capacity, pulses and market.
Dal mill project cost: how much does a mill need?
The cost of a dal mill depends on hourly capacity, whether you own the land, and how much raw pulse stock you carry. Working capital is unusually large because the raw material is costly. The large tier is the mill in our sample report; the other two are indicative ranges.
Mini dal mill
₹15–40 lakh
About 0.5–2 MT per day, 100–200 kg per hour
- Machinery₹5–15 lakh
- ShedUsually rented
- Working capital₹7–20 lakh
Fits PMFME or PMEGP, subject to limits
Mid-size mill
₹1–2 crore
About 3–5 MT per day
- Machinery₹40–70 lakh
- Land and building₹40–80 lakh
- Working capital margin₹20–40 lakh
MSME term loan plus cash credit for stock
Large mill
₹346 lakh
9.3 MT per day, 2,790 MT per year
- Plant and machinery₹133 lakh
- Land and building₹122 lakh
- Working capital margin₹56 lakh
Term loan ₹259 lakh (75%), promoter ₹86 lakh
Mini and mid-size ranges are indicative and vary with location, machine make and stock policy. Government model reports for 0.7–1.6 MT per day mills come to about ₹15.5–17.7 lakh in rented sheds.
Dal mill manufacturing process, step by step
Most commercial mills use the dry method, which loosens the husk with oil and water instead of long soaking. Easy pulses such as chana need one or two passes through the emery rollers; tur, urad and moong usually need three or more.
- Cleaning and grading
A pre-cleaner and destoner remove dust, stones, chaff and immature grain, and a grader sorts pulses by size so each lot dehusks evenly.
- Pitting
A light pass through emery rollers scratches the seed coat, so oil and water can reach the gum layer that holds the husk to the seed.
- Oil treatment
A measured dose of edible oil is mixed in with screw conveyors, and the grain is left to temper so the oil soaks under the husk.
- Water treatment and conditioning
About 2–5% water by weight is sprayed on. The grain is then dried in a hot air dryer in a few hours, or in a drying yard over two to three days.
- Dehusking
Emery roll dehuskers strip the husk in repeated passes, and aspirators lift husk and powder away after each pass.
- Splitting
Dehusked grain goes through a dal splitter that breaks each seed into its two halves; unsplit grain is wetted again and re-passed.
- Polishing and grading
A polisher gives the dal an even finish, and sieves separate graded dal from brokens and chuni.
- Packing
Dal is weighed and packed in consumer packs for retail, or in bags for wholesalers and institutional buyers.
Raw pulses and other inputs for a dal mill
Kharif pulses such as tur, moong and urad arrive after the monsoon, and rabi pulses such as chana and masoor in spring. Buying well in those weeks, and storing the grain dry and free of weevils, is the main skill in running a dal mill.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Whole pulses such as tur, chana, moong or urad | 98% | 1,603.45 |
| Edible oil for husk loosening | 2% | 32.72 |
| Total | 100% | 1,636.17 |
Raw materials are 76.2% of sales in the sample. Packing, power and labour are costed separately.
Dal mill machinery and its cost
The sample mill uses nine groups of equipment. The emery roll machines cost the most, because they do both the pitting and the repeated dehusking passes.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Pre-cleaner, destoner and size grader | Removes dirt and stones, sorts grain by size | 21.32 |
| Oil and water mixing screw conveyors | Coats the grain evenly before tempering | 8.00 |
| Emery roll pitting and dehusking machines | Scratches and then strips the husk | 31.98 |
| Hot air dryer and tempering bins | Dries and rests the treated grain | 18.65 |
| Dal splitting machine | Splits dehusked grain into halves | 11.99 |
| Dal polisher | Gives an even surface finish | 10.66 |
| Aspirators, cyclones and dust collection | Removes husk and powder after each pass | 10.66 |
| Bucket elevators, conveyors and electrical panels | Moves grain between machines | 11.99 |
| Weighing, bag filling and stitching machines | Packs dal in bags | 7.99 |
| Total plant and machinery | 133.24 | |
Costs are the sample report's estimates for a 9.3 MT per day mill. For comparison, CFTRI's modern dhal mill handles 1 tonne of pulses per hour. Get current quotations before you finalise.
Who buys dal and by-products from a mill?
Dal is cooked daily in most Indian homes, so demand holds through the year while supply swings with the harvest and with imports. A mill sells three streams: graded dal, brokens and chuni for besan and snack makers, and husk and powder for cattle feed.
Wholesalers and packers in the sample get 20 days of credit. Policy also supports supply. The Mission for Aatmanirbharta in Pulses, approved in October 2025, targets 350 lakh tonnes of pulse output by 2030-31 and MSP procurement of tur, urad and masoor.
- Wholesale grain merchants and distributors
- Packaged food brands buying private-label dal
- Kirana stores, supermarkets and regional packers
- Hotels, caterers and institutional kitchens
- Besan, namkeen and cattle feed makers
Recovery is the margin: with raw pulses at about three quarters of sales in our sample, every kilo lost as powder or brokens comes straight out of profit. Pulse-wise grading and the right number of dehusking passes matter more than the selling price.
Licences, food standards and GST for a dal mill
| Business registration | Udyam (MSME) registration and GST registration |
|---|---|
| FSSAI licence | FSSAI places grain, pulse and cereal milling units under the State licence regardless of production capacity |
| Food standards | FSSAI standards apply to each dal; for arhar (tur) dal, moisture up to 14%, uric acid up to 100 mg per kg, aflatoxin up to 30 micrograms per kg and weevilled grains up to 3% by count |
| GST | 5% on dal that is pre-packaged and labelled (heading 0713), as of October 2026; a single pack above 25 kg is not treated as pre-packaged and labelled |
| Pollution board consent | Dal mills are listed in the green category; consent to establish and operate is still taken from the State Pollution Control Board |
| Legal Metrology | Label declarations and registration under the Packaged Commodities Rules for dal sold in retail packs |
Rules differ by state and change over time. Confirm with the State Food Safety office, the pollution board and your tax adviser.
Loans and subsidy for a dal mill
PMFME
35% subsidy, up to ₹10 lakhCredit-linked subsidy for micro food processing units, with at least 10% own contribution. Suits a mini dal mill.
PMEGP
Manufacturing projects up to ₹50 lakhSubsidy of 15–35% of project cost for new units; own contribution is 10%, or 5% for special categories.
Mission for Aatmanirbharta in Pulses
Subsidy up to ₹25 lakhSupports about 1,000 pulse processing and packaging units from 2025-26 to 2030-31. State-level guidelines decide who qualifies.
Scheme terms change. Confirm current limits with the bank, the State nodal agency or the scheme portal before you apply.
Mistakes that weaken a dal mill business plan
- Assuming a high dal recovery
Yields near the theoretical 85% are rare in practice. Projections built on them overstate sales and DSCR, and lenders who know milling will question them.
- Pricing all output as graded dal
Brokens, chuni and husk sell for far less than graded dal. Each stream needs its own share and price in the sales estimate.
- Using one setting for every pulse
Tur and urad need more passes than chana and lose more as powder. A mill that plans to switch pulses should show recovery for each.
- Too small a limit for harvest buying
Buying a season's stock at harvest prices ties up cash for months. The cash credit limit must match the stock policy, not an average month.
- No plan for storage and pest control
Weevils and damp raise rejection and cut recovery. Budget for dry godown space, fumigation and moisture checks before packing.
How NPCS helps you set up a dal mill
- Pulse mix and capacityChoose which pulses to mill and the hourly capacity that suits local supply and your budget.
- Machinery and process routeCompare dehusker, splitter and dryer options and get quotations for the full line.
- Bank-ready project reportRecovery, by-product income, projections, DSCR and working capital in the format your lender wants.
- Approvals and layoutPlant layout, power load, godown space and the licence list for your state.
NPCS's published client list includes 58 assignments in grain, pulse and rice milling, and the NPCS project team has prepared project reports and feasibility studies since 1994.
What's inside the dal mill sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
18 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
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Dal Mill project report: frequently asked questions
What is the dal mill project cost in India?
A mini dal mill in a rented shed needs roughly ₹15–40 lakh, most of it working capital for raw pulses. A 3–5 MT per day mill on its own land costs about ₹1–2 crore. Our sample report models a 9.3 MT per day mill at ₹345.76 lakh. These ranges are indicative; your report prices your own capacity and location.
How much dal do you get from one quintal of pulses?
Usually 70 to 80 kg. CFTRI, Mysore reports 77–80% dal yield for its improved process, and ICAR-IIPR notes that abrasive dehusking units recover about 70% against a potential of about 85%. The rest leaves as husk, powder and brokens. Tur and urad are harder to dehusk than chana, so they need more passes and lose more.
Which machines are needed for a dal mill?
A pre-cleaner and destoner, emery roll pitting and dehusking machines, screw conveyors for the oil and water treatment, a dryer with tempering bins, a dal splitter, a polisher, aspirators and cyclones, bucket elevators, and weighing and bag stitching machines. In our sample the emery roll machines are the largest machinery cost at ₹31.98 lakh.
Is a dal mill business profitable?
It can be, but on volume and recovery rather than price. In our illustrative sample a 9.3 MT per day mill earns ₹117.60 lakh net profit on ₹2,148.30 lakh of sales in Year 3, a 5.5% net margin. Because the margin is thin, raw pulse buying, dal recovery and by-product sales decide whether a real mill makes money.
Which licences and GST apply to a dal mill?
You need Udyam and GST registration, an FSSAI State licence (FSSAI puts every pulse milling unit under the State licence), consent from the State Pollution Control Board, and Legal Metrology compliance for packed dal. As of October 2026, dal that is pre-packaged and labelled in packs up to 25 kg attracts 5% GST under heading 0713.
Can I get PMEGP or PMFME subsidy for a dal mill?
A small mill can fit either scheme if it meets the rules. PMEGP covers manufacturing projects up to ₹50 lakh with a subsidy of 15–35% of project cost. PMFME gives micro food processing units a credit-linked subsidy of 35% of eligible project cost, capped at ₹10 lakh. Larger mills usually take an MSME term loan with a cash credit limit.
Dal mill ka business kaise shuru kare?
First choose the pulses you will mill and check raw pulse supply within buying distance, since tur, chana and moong need different machine settings. Then fix hourly capacity, collect machinery quotations, arrange a shed with three-phase power and dry storage, and register for Udyam, GST and the FSSAI State licence. A project report is needed for the bank loan or subsidy.
Is the sample report free and can I use it for a loan?
The sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report; its figures are representative and not based on a real project, so it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, pulses, location and loan scheme.
Sources and references
- Modern dhal mill technologyCSIR-Central Food Technological Research Institute, Mysore, checked Oct 2026
- Mini versatile dhal millCSIR-Central Food Technological Research Institute, Mysore, checked Oct 2026
- Technologies: dal mill, mini dal mill and pulse by-productsICAR-Indian Institute of Pulses Research, Kanpur, checked Oct 2026
- Technology of pulses (course module)Consortium for Educational Communication (UGC), checked Oct 2026
- Detailed project report: dal mill (gram based) under PMFMENIFTEM, Ministry of Food Processing Industries, checked Oct 2026
- Project report: dal mill unit (urad and chana dal)One District One Product, Government of Uttar Pradesh, checked Oct 2026
- FSSAI standards for arhar dalNIFTEM, Ministry of Food Processing Industries, checked Oct 2026
- FAQs on licensing and registrationFood Safety and Standards Authority of India, checked Oct 2026
- Notification No. 9/2025-Integrated Tax (Rate)Central Board of Indirect Taxes and Customs, checked Oct 2026
- FAQs on GST on pre-packaged and labelled goodsGST Council, checked Oct 2026
- Categorisation of industrial sectors under green categoryState Pollution Control Board, Odisha, checked Oct 2026
- Prime Minister's Employment Generation Programme (PMEGP)State Bank of India, checked Oct 2026
- PM Formalisation of Micro Food Processing Enterprises (PMFME)State Bank of India, checked Oct 2026
- Union Cabinet approves Mission for Aatmanirbharta in PulsesPrime Minister's Office, Government of India, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.