Cleaner Production (CP) strategy provides an opportunity to achieve economic, social and environmental sustainability. The current paper intends to examine factors influencing CP in a rice-mill cluster in the state of Karnataka. The prevailing CP level in the rice-mill cluster is estimated using fuzzy logic by considering three contributing criteria. Empirical data analysis revealed that, despite units in the cluster adopting a similar processing technology, considerable variation in their CP performance existed underlining a thorough probe. Accordingly some of the dimensions not considered in the fuzzy evaluation are identified and used to construct factors which are likely to influence the variation in CP level. Multiple Regression Analysis (MRA) is carried out by treating the factors as independent variables and CP level derived as dependent variable. Results revealed that in the studied rice-mill cluster ‘technical’, ‘human resource’ and ‘economic’, factors have significant influence on the CP level. The policy measures targeting enhancement of CP levels must focus on these factors for a sustainable growth of the rice-mill cluster in the long-run.