Rame Gowda, P VSANJAY, K V2016-11-032016-11-0341573Th-10683http://krishikosh.egranth.ac.in/handle/1/83555India ranks second in production of rice next to China. Rice milling is the oldest and the largest agro-processing industry of the country. The present study has made an attempt to examine the Raw material procurement, investment pattern, business performance and constrains faced by the rice mills. Primary data were collected from nine rice mills. The major findings of the study were the highest quantity of paddy was purchased from the farmers followed by wholesalers and commission agents. The highest quantity of paddy purchased were the varieties of Sona Masuri and Jaya. The average investment on made on rice mills with the milling capacity of 30- 40 quintals per hour was 553 lakhs as compared to rice mills with capacity 25-30 quintals per hour which was 355 lakh. The average investment on the installed capacity of 10-25 quintals per hour was 257 lakhs. The percentage of milling capacity utilization was 68 per cent in case of 30-40 quintals per hour capacity mill followed by 54 per cent in case 25-35 quintals per hour, the capacity utilization was 48 per cent in 10-25 quintals per hour. Acid test ratio ranged from 0.84 -2.16 in case of large scale units followed by 1.4-1.9 in medium. The major constraints faced by rice millers were high price of raw materials is considered as a major problem, followed by lack of working capital to purchase raw materials. The other constraint ranked third was irregular power supply.enThesis