What is a paper from rice husk and wheat husk project report?
A paper from rice husk and wheat husk project report is a detailed project report (DPR) for a mill that turns farm residue into kraft and packaging paper. The fibre is mainly wheat straw and rice husk, blended with waste paper. It covers the pulping process, machinery, fibre supply, effluent treatment, project cost, five-year projections, DSCR and break-even.
Promoters use it to size the mill and raise a term loan; lenders and pollution control boards use it to check fibre supply, water use and repayment capacity.
Also known as: agro-based paper mill project report, agro waste paper plant DPR, wheat straw paper mill project report, rice husk paper making business plan.
Paper from rice husk and wheat husk plant cost in India
Our sample report models a 27 MT per day mill running 330 days a year, or 8,910 MT per year at full capacity. It starts at 60% utilisation, reaches 70% in Year 3 and 80% in Year 5, and sells kraft paper at ₹34,700 per MT before GST.
| Land and site development | 116.99 |
|---|---|
| Building and civil works | 371.18 |
| Plant and machinery | 717.26 |
| Other fixed assets | 96.69 |
| Contingencies | 54.42 |
| Preliminary and pre-operative | 33.91 |
| Working capital margin | 66.14 |
| Total | 1,456.59 |
| Promoter's contribution (25%) | 364.15 |
|---|---|
| Term loan from bank (75%) | 1,092.44 |
| Cash credit limit (separate) | 198.42 |
| Total project cost | 1,456.59 |
Term loan at 10.5% with a 12-month moratorium and 72 monthly instalments; lowest yearly DSCR 2.13. All figures are illustrative.
Paper from rice husk and wheat husk manufacturing process
Agro-residue paper is made by soda pulping: caustic soda cooks the residue, the freed fibre is washed and refined, and a paper machine turns it into reels. Most small agro mills make unbleached kraft, which avoids a bleach plant and its effluent.
- Cleaning and cutting
Wheat straw is chopped short and rice husk is dedusted. Removing sand, grain and loose silica here protects the digester and saves cooking chemical.
- Cooking
The residue is cooked with caustic soda in a digester to dissolve lignin. Straw needs only a mild cook; trials on rice straw used about 140°C for roughly two and a half hours.
- Washing and screening
Pulp is washed free of black liquor, the dark spent cooking liquor, and screened to take out uncooked nodes and grit.
- Blending and refining
Straw fibre is short and weak, so it is blended with waste paper (OCC) pulp, refined for bonding and sized with rosin and alum to resist water.
- Sheet forming and pressing
The machine spreads the stock on a moving wire, drains it and presses out water. Straw pulp drains more slowly than waste paper pulp, so the wire section is sized for it.
- Drying and reeling
Steam-heated dryer cylinders bring the web to finished moisture. It is then reeled, slit to the widths box makers order and wrapped for dispatch.
Can paper be made from rice husk alone?
Not at commercial quality. Rice husk is hard, short-fibred and full of silica: burned in a boiler it leaves about 17% ash, according to CPCB's pulp and paper charter. In pulping, that silica dissolves into the black liquor as sodium silicate, which conventional chemical recovery units cannot handle.
Working agro mills therefore run mainly on wheat straw, which many traders sell as wheat husk or bhusa, with rice straw and a limited share of rice husk. Even rice straw has only 35–40% true paper-making fibre, and soda cooking yields about 52–60% pulp. A mill therefore buys close to two tonnes of residue for each tonne of pulp.
Rice husk often earns more as boiler fuel than as fibre. CPCB puts its steam output at about 3 tonnes of steam per tonne of husk, which makes a husk-fired boiler a natural fit for a mill that already handles husk. Our sample report uses this mix: wheat straw and rice husk make up 55% of raw material cost, waste paper 25% and chemicals 20%.
What a lender will ask for: a fibre plan with the share of each residue and the pulp yield you expect. It should also show where a season's stock will be stored. A report that calls the mill "rice husk based" without this will not pass appraisal.
Raw materials for an agro-based paper mill
Wheat straw comes in after the rabi harvest in April and May, and paddy residue after the kharif harvest in October and November. In our sample report raw materials take 40.1% of sales, the largest cost head.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Wheat straw and rice husk | 55% | 477.23 |
| Waste paper (OCC) | 25% | 216.92 |
| Caustic soda and sizing chemicals | 20% | 173.54 |
| Total | 100% | 867.69 |
Rice husk is also bought by boilers and biomass power plants, so its price moves with fuel demand. Get supply quotes for a full year.
Machinery for a paper plant using rice husk and wheat husk
The paper machine is the largest item, at ₹286.90 lakh of the ₹717.26 lakh machinery cost in our sample. The boiler and effluent plant are not optional extras here: the mill cannot cook, dry or get consent without them.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Husk and straw cutter with dust cleaner and digester | Chops, cleans and cooks the residue | 143.45 |
| Pulp washing, screening and refining system | Removes black liquor and grit, develops fibre bonding | 143.45 |
| Kraft paper machine with dryer cylinders | Forms, presses and dries the paper web | 286.90 |
| Husk-fired steam boiler | Supplies steam to the digester and dryers | 71.73 |
| Effluent treatment plant | Treats wash water for reuse or discharge | 71.73 |
| Total plant and machinery | 717.26 | |
Costs are the sample report's estimates for a 27 MT per day mill. Get current quotations before you finalise.
Water, steam and power for an agro-based paper mill
Water and steam decide both the running cost and the pollution board approval for this product. CPCB's Charter 3.0 (June 2024) sets these benchmarks for agro-based mills in the Ganga and Yamuna main-stem states.
| Freshwater use target | 20 kL per tonne of product for unbleached agro mills; 35 kL for bleached mills |
|---|---|
| Effluent discharge target | 14 kL per tonne for unbleached mills; 25 kL for bleached mills |
| Treated effluent quality | BOD 20 mg/l, COD 200 mg/l, suspended solids 30 mg/l, pH 6.5–8.5, or the state board's limits if stricter |
| Electricity | Indian average 1,200–1,400 kWh per tonne for agro mills; best practice about 1,000 kWh |
| Steam | Indian average 12–14 tonnes per tonne of product; best practice about 10 tonnes |
| Boiler fuel | Rice husk gives about 3 tonnes of steam per tonne and leaves about 17% ash, handled under CPCB's fly ash guidelines |
| In our sample report | Power and fuel cost ₹238.78 lakh in Year 3, or 11% of sales, the second largest cost after raw materials |
Licences and approvals for a rice husk and wheat husk paper mill
| Pollution category | Red. State lists based on CPCB criteria name small agro-based pulp and paper units using wheat straw or rice husk; consent to establish and to operate from the State Pollution Control Board |
|---|---|
| Effluent rules | Environment (Protection) Rules limit small agro-residue mills to 150 m³ of wastewater per tonne of paper, with BOD of 30 mg/l for discharge to surface water |
| Water recycling charter | CPCB Charter 3.0 applies to pulp and paper mills in the Ganga and Yamuna main-stem states, with action plans due within six months |
| Product standard | IS 1397 (kraft paper for wrapping and general packing) is the usual quality reference |
| GST | 18% on uncoated kraft paper (HSN 4804) and other uncoated paper and paperboard (HSN 4805) from 22 September 2025, up from 12% |
| Business registration | Udyam and GST registration, factory licence, and state approvals for the steam boiler and fire safety |
Rules checked in October 2026. Confirm current requirements with your state board before you apply.
Who buys paper made from rice husk and wheat husk?
Almost all output goes into packaging. Agro-residue kraft is brown and moderate in strength, so it sells mainly as fluting and inner layers for corrugated board, wrapping paper and tape base, bought by the reel.
The September 2025 GST change matters to these buyers. Paper now carries 18% while corrugated cartons and boxes carry 5%. Box makers pay more tax on paper than they charge on boxes, so they watch paper prices and credit terms closely.
- Corrugated box and board makers
- Packaging converters and paper traders
- Gummed paper tape makers
- Paper core, cone and tube makers
- Paper bag makers
Where a new mill wins: fibre radius. Straw and husk are bulky and cheap per tonne. A mill sited close to rice mills and wheat farms pays far less to bring fibre in than one that trucks it from a distant district.
Mistakes that weaken a paper from rice husk and wheat husk project report
- Treating rice husk as the main fibre
A furnish heavy in husk gives low yield and weak paper and loads the black liquor with silica. Plan husk as a minor fibre or as fuel.
- Costing residue at harvest prices all year
Straw and husk are cheapest just after harvest. The report must show storage space, fire protection and off-season prices, not one rate for twelve months.
- Under-budgeting effluent treatment
Black liquor and wash water carry very high COD. A small effluent plant on paper becomes a consent problem, and then a loan problem.
- Choosing a site before checking water
Even at the charter target of 20 kL per tonne, a 27 MT per day mill needs a steady water supply and a lawful discharge point.
- Using the old 12% GST rate
Kraft and other uncoated paper moved to 18% from 22 September 2025. Older reports understate the working capital tied up in tax.
How NPCS helps you plan a rice husk and wheat husk paper mill
- Fibre mix and capacitySet the share of wheat straw, rice straw, husk and waste paper, and a capacity your residue supply can support.
- Process and machineryCompare digester, washing and paper machine options and get quotations sized for your grade.
- Bank-ready project reportProjections, DSCR and working capital with seasonal residue stock, in the format your lender wants.
- Water, effluent and consentWater balance, effluent plant sizing and the approvals list for a Red category mill in your state.
NPCS's client list shows 14 assignments for paper, kraft paper and board mills, from kraft paper units to a paper plant with its own bamboo pulp. The NPCS project team, led by founder Ajay Kumar Gupta, has prepared project reports since 1994.
What's inside the paper from rice husk and wheat husk 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 |
Real NPCS paper from rice husk and wheat husk project reports
These are paper from rice husk and wheat husk project reports NPCS has prepared, with the plant capacity, total capital investment, rate of return and break-even worked out in each. Costs have moved since some were written, so we bring any of them up to date for your capacity and location.
| Project report | Plant capacity | Total investment | Rate of return | Break-even | Action |
|---|---|---|---|---|---|
| Paper from Waste Paper, Bamboo Chips, Rice Husk & Wheat Husk | 150 MT /Day | ₹24.99 crore | 81.7% | 35.6% | Get this report |
Figures as worked out in each NPCS report. Total investment includes plant and machinery, land and building, and working capital.
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Paper from Rice Husk and Wheat Husk project report: frequently asked questions
Can paper be made from rice husk and wheat husk?
Yes, but not from rice husk alone at commercial quality. Rice husk is short-fibred and rich in silica, so mills use it as a minor fibre or as boiler fuel. The main fibre is usually wheat straw, often sold as wheat husk or bhusa, blended with rice straw and waste paper to give packaging-grade kraft paper.
How much does it cost to set up a paper plant from rice husk and wheat husk?
Our sample report models a 27 MT per day mill at a total project cost of ₹1,457 lakh, with ₹717 lakh in plant and machinery. A smaller mill costs less but not in proportion, because the digester, boiler and effluent plant have a minimum size. Your own cost depends on capacity, location and whether you bleach.
Which machines are needed for an agro-based paper mill?
You need a straw cutter and husk dust cleaner, a digester for soda cooking, and pulp washers, screens and refiners. After that come a paper machine with steam-heated dryer cylinders, a steam boiler and an effluent treatment plant. In our sample report the paper machine is the largest single item, at ₹286.90 lakh of the ₹717.26 lakh machinery cost.
Is a paper mill based on rice husk and wheat husk profitable?
In our illustrative sample, a 27 MT per day mill earns a 23% return on investment in Year 3. It breaks even at 38% of capacity and pays back in about 3.4 years. Real profit depends on residue prices through the off-season, pulp yield, steam cost and the credit that box makers expect.
What is the GST rate on kraft paper made from agro waste?
From 22 September 2025, uncoated kraft paper (HSN 4804) and other uncoated paper and paperboard (HSN 4805) attract 18% GST, up from 12%. Cartons and boxes of corrugated paperboard moved to 5%, so box makers now pay more tax on paper than they charge on boxes. Confirm the rate for your exact grade with your tax adviser.
Which pollution category applies to an agro-based paper mill?
Red. State pollution board lists based on CPCB criteria name small agro-based pulp and paper units using wheat straw or rice husk in the Red category. You need consent to establish before construction and consent to operate before production, and mills in the Ganga and Yamuna main-stem states must also meet the CPCB water recycling charter.
Is the sample report free and can I use it for a bank 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, fibre mix and location.
Sources and references
- Recommendations of the 56th meeting of the GST Council (rate changes, paper sector)GST Council, Press Information Bureau release, checked Oct 2026
- Categorisation of industrial sectors under Red as per CPCB criteriaState Pollution Control Board, Odisha, checked Oct 2026
- Charter for Water Recycling and Pollution Prevention in Pulp and Paper Industries, Charter 3.0 (June 2024)Central Pollution Control Board (copy on Uttarakhand Environment Protection and Pollution Control Board site), checked Oct 2026
- IS 1397 Kraft paper: specificationBureau of Indian Standards, checked Oct 2026
- Industry effluent standards (Environment (Protection) Rules)Puducherry Pollution Control Committee, checked Oct 2026
- Rice straw pulping and bleaching in small paper mills in IndiaUnited Nations Industrial Development Organization, 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.