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Rice Par Boiling Plant

Rice Par Boiling Plant

Detailed Project Report of PARBOILED INDUSTRY


for
AMRUTHA VARSHINI AGRO Tech Pvt Ltd.,

By
Vijay Chander Keesara
+91-9392 777 444
+91-9959 777 444
E-mail: vc_reddy@yahoo.com
Rice Par Boiling Plant

Pre Feasibility Study


1 INTRODUCTION .................................................................................................... 1

2 PURPOSE OF THE DOCUMENT ............................................................................................... 2

3 CRUCIAL FACTORS & STEPS IN DECISION MAKING FOR INVESTMENT IN THE


PROJECT............................................................................................................................................... 2

4 PROJECT PROFILE .................................................................................................................... 2


4.1 OPPORTUNITY RATIONALE ...................................................................................................... 2
4.2 PROJECT BRIEF DESCRIPTION .................................................................................................. 4
4.3 MARKET ENTRY TIMING ......................................................................................................... 4
4.4 PROPOSED BUSINESS LEGAL STATUS ....................................................................................... 5
4.5 PROJECT CAPACITY AND RATIONALE ....................................................................................... 5
4.6 TOTAL PROJECT INVESTMENT.................................................................................................. 5
4.7 PROPOSED PRODUCT MIX ........................................................................................................ 5
4.8 RECOMMENDED PROJECT PARAMETERS ................................................................................... 5
4.9 PROPOSED LOCATION .............................................................................................................. 5
5 SECTOR & INDUSTRY ANALYSIS ........................................................................................... 5
5.1 WORLD RICE PRODUCTION AREAS .......................................................................................... 5
5.2 RICE & ITS VARIETIES ............................................................................................................. 6
5.3 RICE GRAIN ............................................................................................................................ 6
5.4 TYPES OF RICE ........................................................................................................................ 7
5.4.1 White Rice ......................................................................................................................... 7
5.4.2 Jasmine Rice...................................................................................................................... 7
5.4.3 Brown Rice ........................................................................................................................ 8
5.4.4 Glutinous Rice ................................................................................................................... 8
5.4.5 Broken Rice ....................................................................................................................... 8
5.4.6 Short Grained Rice ............................................................................................................ 8
5.4.7 Paddy ................................................................................................................................ 8
5.4.8 Black Rice ......................................................................................................................... 8
5.4.9 Red Rice ............................................................................................................................ 8
6 SECTOR CHARACTERISTICS .................................................................................................. 9
6.1 INTERNATIONAL RICE MARKET ............................................................................................... 9
6.1.1 Demand Analysis. .............................................................................................................. 9
6.1.2 Consumption Pattern of Rice.............................................................................................. 9
6.1.3 Supply Analysis................................................................................................................ 10
6.1.4 Rice Production and Composition of Production .............................................................. 10
6.2 WORLD PRICE FOR RICE ........................................................................................................ 11
6.2.1 Top Ten Importing & Exporting Countries of Rice............................................................ 13
6.3 INDIA MARKET ............................................................................................................... 17
6.3.1 Basmati Rice from India ............................................................................................. 17
6.3.2 Types and Forms of Rice.................................................................................................. 17
6.3.2.1 Super Kernel ........................................................................................................................ 17
6.3.2.2 Basmati Rice 385 ................................................................................................................. 17
6.3.2.3 Brown Rice .......................................................................................................................... 18
6.3.2.4 Parboiled Rice ...................................................................................................................... 18
6.3.3 Production of Rice (Supply Side Analysis) ........................................................................ 18
6.3.4 Local Consumption pattern .............................................................................................. 19
6.3.5 Price Pattern ................................................................................................................... 20
6.4 LEGAL ISSUES REGARDING INDUSTRY ................................................................................... 23
Rice Par Boiling Plant

7 PROCESSING PLAN ................................................................................................................. 23


7.1 PAR BOILING ........................................................................................................................ 23
7.1.1 Vacuum ........................................................................................................................... 24
7.1.2 Soaking............................................................................................................................ 24
7.1.3 Heating and Drying of Soaked Rice.................................................................................. 24
7.2 RICE MILLING ....................................................................................................................... 26
7.2.1 Reception & Storage ........................................................................................................ 26
7.2.2 Husking Unit ................................................................................................................... 26
7.2.3 Pre-cleaner...................................................................................................................... 26
7.2.4 Cleaning.......................................................................................................................... 26
7.2.5 Husking ........................................................................................................................... 26
7.2.6 Phak Grader .................................................................................................................... 27
7.2.7 Husk Separator ................................................................................................................ 27
7.2.8 Paddy Separator .............................................................................................................. 27
7.2.9 Destoner.......................................................................................................................... 27
7.2.10 Reprocessing Unit ....................................................................................................... 27
7.2.11 Separator .................................................................................................................... 27
7.2.12 Combi- Cleaner: ......................................................................................................... 27
7.2.12.1 Scalping Cylinder ................................................................................................................. 28
7.2.12.2 Double Stage Sieves Cleaner ................................................................................................ 28
7.2.12.3 Air Aspirator ........................................................................................................................ 28
7.2.13 Magnetic Cleaning ...................................................................................................... 28
7.2.14 Silky Polisher .............................................................................................................. 28
7.2.15 Whitening & Polishing ................................................................................................ 28
7.2.16 Grading ...................................................................................................................... 29
7.2.17 Color Sorting .............................................................................................................. 29
8 MARKET INFORMATION ....................................................................................................... 29
8.1 MARKET POTENTIAL ............................................................................................................. 29
8.2 TARGET CUSTOMERS ............................................................................................................ 29
8.3 TRADE STATISTICS ................................................................................................................ 29
9 PRODUCTION PROCESS ......................................................................................................... 29
9.1 PRODUCTION PROCESS FLOW ................................................................................................ 29
9.2 PRODUCT MIX OFFERED ........................................................................................................ 30
9.3 RAW MATERIAL REQUIREMENT ............................................................................................. 30
9.4 TECHNOLOGY AND PROCESSES .............................................................................................. 30
9.4.1 Technology/Process Options ............................................................................................ 30
9.4.2 Merits & demerits of a particular technology ................................................................... 30
9.5 MACHINERY REQUIREMENT .................................................................................................. 30
9.6 PRODUCT/PROJECT STANDARDS AND COMPLIANCE ISSUES .................................................... 31
10 LAND & BUILDING REQUIREMENT .................................................................................... 31
10.1 TOTAL LAND REQUIREMENT ................................................................................................. 31
10.2 COVERED AREA REQUIREMENT ............................................................................................. 31
10.3 CONSTRUCTION COST ........................................................................................................... 31
10.4 RENT COST ........................................................................................................................... 31
10.5 RECOMMENDED MODE .......................................................................................................... 31
10.6 SUITABLE LOCATION............................................................................................................. 31
11 HUMAN RESOURCE REQUIREMENT................................................................................... 31

12 FINANCIAL ANALYSIS............................................................................................................ 32
12.1 PROJECTED INCOME STATEMENT ........................................................................................... 33
12.2 PROJECTED BALANCE SHEET ................................................................................................. 33
Rice Par Boiling Plant

12.3 PROJECTED CASH FLOW STATEMENT ..................................................................................... 35


12.4 RATIO ANALYSIS .................................................................................................................. 36

Waste Minimization
1. Background
2.Material Balance and Specific
Consumptions
3. Waste Generation Areas
4. Waste Minimisation Measures
i) Dust in the Paddy unloading area
ii) Improvements in Husk Collection and Storage system
iii) Other Dust Control Measures
i v ) S t e a m G e n e r a t i o n a n d Distribution
v) Effluent Management
vi) Electrical System
vii) Equipment Maintenance
viii) Support Services
5. Constraints
6. Conclusion

PARBOILED RICE
1.0 PRODUCT AND ITS APPLICATIONS
2.0 MARKET POTENTIAL
3.0 BASIS AND PRESUMPTION
4.0 IMPLEMENTATION SCHEDULE
5.0 TECHNICAL ASPECTS
5.1 Process of Manufacture
5.2 Quality Control and Standards
6.0 POLLUTION CONTROL
7.0 ENERGY CONSERVATION
8.0 PRODUCTION CAPACITY
9.0 FINANCIAL ASPECTS
9.1 Fixed Capital
9.1.1 Land & Building
9.1.2 Machinery and Equipment
9.1.3 Pre-operative Expenses
9.1.4 Total Fixed Capital
9.2 Recurring expenses per annum
9.2.1 Personnel
9.2.2 Raw Material including packaging materials
9.2.3 Utilities
9.2.4 Other Contingent Expenses
9.2.5 Total Recurring Expenditure
9.3 Working Capital
Rice Par Boiling Plant

9.4 Total Capital Investment

10.0 FINANCIAL ANALYSIS


10.1 Cost of Production
10.2 Sale Proceeds
10.3 Net Profit
10.4 Net Profit Ratio
10.5 Rate of Return on Investment
10.6 Annual Fixed Cost
10.7 Break even Point
11.0ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS

Cluster Study
Introduction
Age of the Cluster
Nature of the Cluster
Industry Scenario
Cluster Details
Structure of Cluster
Evolution of Cluster
Production process - description of value chain
Analysis of Value Chain( as per FAQ standard)
Analysis of Business operations
Presence of support institutions
Business Development Service Providers
Infrastructure analysis of Cluster
Credit analysis of the cluster
Social and Environmental Conditions of the Cluster
analysis
Vision for the Cluster
Key Problem Areas & strategic interventions proposed
Expected major outputs
BROAD ACTION PLAN

Article Outline
1. Introduction
2. Methodology
2.1. Goal definition and scoping
2.1.1. System boundary
2.1.2. Functional unit
2.2. Inventory analysis and data collection
2.2.1. Life cycle energy consumption
2.2.2. Air emission
2.3. Production cost of rice
Rice Par Boiling Plant

3. Results and discussion


3.1. Resources consumption
3.2. CO2 emission
3.3. Production cost
3.4. Effect of method switching on CO2 emission

Annexure I
Promoters
KYC

Annexure II
Costings
Revenue Projections
5 Year Projected Balance Sheets
Quotations

Annexure III
Future Plans
Expansion Program
Captive Power Plant
Rice Par Boiling Plant

Pre Feasibility Study


Rice Par Boiling Plant

Waste Minimization
Rice Par Boiling Plant

PARBOILED RICE
Rice Par Boiling Plant

Cluster Study
Rice Par Boiling Plant

Article Outline
Rice Par Boiling Plant

1 INTRODUCT
DUCTION
The Small and Medium Enterprise Development Authority (SMEDA)
was established with the objective to provide fresh impetus to the
economy through the launch of an aggressive SME support program.
Since its inception in October 1998, SMEDA had adopted a sectoral
SME development approach. A few priority sectors were selected on
the criterion of SME presence. In depth research was conducted and
comprehensive development plans were formulated after identification
of impediments and retardants. The all-encompassing sectoral
development strategy involved overhauling of the regulatory
environment by taking into consideration other important aspects
including finance, marketing, technology and human resource
development.
SMEDA has so far successfully formulated strategies for sectors
including, fruits and vegetables, marble and granite, gems and
jewelry, marine fisheries, leather and footwear, textiles, surgical
instruments, transport and dairy. Whereas the task of SME
development at a broader scale still requires more coverage and
enhanced reach in terms of SMEDA’s areas of operation.
Along with the sectoral focus a broad spectrum of business
development services is also offered to the SMEs by SMEDA. These
services include identification of viable business opportunities for
potential SME investors. In order to facilitate these investors, SMEDA
provides help desk services as well as development of project specific
documents. These documents consist of information required to make
well researched investment decisions. Sectoral research studies, pre-
feasibility studies and business plan development are some of the
services provided to enhance the capacity of individual SMEs to exploit
viable business opportunities in a better way.

DISCLAIMER

The purpose and scope of this information memorandum is to


introduce the subject matter and provide a general idea and
information on the said area. All the material included in this document
is based on data/information gathered from various sources and is
based on certain assumptions. Although, due care and diligence has
been taken to compile this document, the contained information may

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Rice Par Boiling Plant

vary due to any change in any of the concerned factors, and the actual
results may differ substantially from the presented information. SMEDA
does not assume any liability for any financial or other loss resulting
from this memorandum in consequence of undertaking this activity.
Therefore, the content of this memorandum should not be relied
upon for making any decision, investment or otherwise. The
prospective user of this memorandum is encouraged to carry out
his/her own due diligence and gather any information he/she considers
necessary for making an informed decision.
The content of the information memorandum does not bind
SMEDA in any legal or other form.

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2 PURP
URPOSE OF THE
DOCUM
CUMENT
The objective of the pre-feasibility study is primarily to facilitate
potential entrepreneurs in project identification for investment. The
project pre-feasibility may form the basis of an important investment
decision and in order to serve this objective, the document/study
covers various aspects of project concept development, start-up,
production, marketing, finance, capital budgeting and business
management. The document also provides sectoral information,
brief on government policies and international scenario, which have
some bearing on the project itself.
This particular pre-feasibility is regarding rice parboiling and rice
milling which comes under Food sector. Before studying the whole
document one must consider following critical aspects, which forms
the basis of any investment decision.

3 CRUCI
RUCIAL FACT
ACTORS & STEPTEPS IN DECISION
ION MAKIN
KING FOR
INVE
NVESTM
STMENT IN THE PROJECT
Crucial factors in a plant of this size and purpose
would be several;
To obtain the required stream of raw material to process the
targeted amount of rice. The breakeven level of sales is quite
high and any shortage in raw material would make the project
more risky. Since the product is dependent on environmental
conditions the risk of a shortfall in raw rice procurement is there.
Another critical factor would be the level of export sales. Since
these are more profitable, the greater the proportion of the
exports, the greater would be the level of profitability of the
plant.
Maintenance and following of international standards and
grading of the rice according to the criteria followed in the
global markets.
Making sure that the rice produced is marketed properly
internationally and a brand awareness is established about
Indiai par-boiled rice would be beneficial too, since India is
traditionally know for its basmati rice and par-boiled rice has
not been a strong sector for India so far.

4 PROJECT
PROFILE

4.1 Oppo
Opportunit
unity
Rat
Ra t i on a le
Parboiled rice is one of the most popular rice products in Europe,
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Saudi Arabia, South Africa and other regions of the world. It has
become more important not only by the fact of improved nutritional
value but also by the improved cooking and processing properties
which are desired from the industrial standpoint. Par-boiled rice has
shown the following advantages.

The endosperm structure is changed due to starch


gelatinization, so that the grain becomes harder. This
increases the yield of whole head rice.

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Depending on the respective process which is being


applied, vitamins and minerals from the bran are more or
less shifted into the endosperm, so that they will not be
removed during whitening the rice.
Due to the fact that par-boiled rice is harder, it has a higher
resistance against
insects and has therefore a longer storage life.
Paddy which has first been exposed to hydrothermal
treatment has better
cooking properties. The grains are loose and will not stick
together after cooking.
Due to inactivation of the fat splitting enzymes of lipase, par-
boiled rice has a longer storage life.
Longer storage life of rice bran due to partial stabilization of
bran.
According to one study, 70% of the total rice demand from Saudi
Arabia is that of par-
boiled rice. Saudi Arabian market is a big market for Basmati par-
boiled rice. South African market is non basmati par-boiled rice
market. US market carry par-boiled rice and white rice on the same
shelf.

According to one study the rice consumption has been expanding in


Europe. The estimated consumption of rice in the European Union is
estimated to be 1.5 Tons of white rice. There is an excess production of
round and medium grain rice, which are traditional crops and
represent 83% of the over all European production. There is also a
marked deficit of slender long grain indica rice, generally grown in the
tropics, due to high domestic demand. The European Union imports
about 600,000 tons of white rice. USA has highest share of rice imports
of Europe. USA exports 53%, Thailand exports 15% and India / India
export 14% of the total rice. The estimated demand of other
three countries (Austria, Finland and Sweden) which joined EU in 1997
and of Norway is around 140,000 tons of rice. This will further increase
the EU deficit of rice and collectively, the import of long grain rice of
Europe will increase. Consumption of rice has been increasing and is
evident from the following table.
Country
Kg/person/year 1970 1980 1990
United Kingdom 1.4 3.3 3.7
Germany 1.6 2.0 3.4
Ireland 1.0 2.1 1.8
Belgium + 1.6 4.2 3.5
Luxemburg
Netherlands 3.0 5.1 5.1
Denmark 1.6 2.1 2.7
France 2.5 3.7 3.2
Italy 3.9 4.6 5.7
Spain - 5 6.3 6.3
Portugal - 15.1 15.1
Greece - 5.1 5.1
Rice Par Boiling Plant

European regions have been showing increasing demand for rice


imports. Czech
Republic does not produce any rice and the main supplying countries are
Viet Nam, Italy,

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and Thailand. USA is also competing in this market and trying for
bigger share. The total annual rice consumption is between 50,000
and 60,000 metric tons. Rice is a well established food and
according to the foreign agriculture service “GAIN Report” the per
capita consumption is 4.5 Kg per year. The most popular variety is non
par-boiled long grain rice. Bosnia Herzegovina may also offer
opportunities for Indiai rice exporters. There are 3.75 million people in
Bosnia Herzegovina and the annual per capita consumption is below
2Kg. Bosnia Herzegovina does not produce any rice. Rice is
imported mainly from three countries Italy, Slovenia and China.
However, the rice sometimes does not originate from the country of
export-Slovenian and Austrian rice are actually processed Italian,
Chinese and Indiai rice. Total share of par-boiled rice in total rice
imports of Bosnia Herzegovina is around 7.6% which is second most
demanded type of rice.

Saudi Arabian rice imports for the calendar year 2002 were estimated
around 824,000 metric ton. Rice demand and consumption is expected
to increase mainly because of high population growth rate and
increasing number of pilgrims that come to Mecca and Madina for
Hajj and Ummra. Demand for Parboiled rice has been increasing from
Saudi Arabian market and it has been estimated that the total
demand for par-boiled rice is around 75% of the total rice. India is the
main exporter of rice to Saudi Arabian market. India is the third largest
exporter of rice for Saudi market.
4.2 Project
ect Brief
Descript
iption
Rice is consumed as a major food item after wheat. Rice, which is
grown on a large Short Graingated area in India, is an important Kharif
crop. Rice par-boiling is a process that adds more value to the rice.
After par-boiling the ordinary milling process is applied to the paddy.
Parboiling of rice is a process in which rice paddy is pre-cooked
before milling. The usual steps involved are Soaking, Cooking, Drying
and Milling. During husking the rice is removed from the husk, while
the rice is further refined through different machines, during the
polishing process. The objective of this document is to provide
information about an investment opportunity for setting up a Par-
boiledRice processing unit. In India, the area under rice cultivation is
the third largest after the area under wheat and cotton crops. Total
area under rice cultivation was 2.5 million- hectare (6.175 million
acres) during the year 1999-2000.
Rice is grown in all four provinces of India. The rice crop is sown in the
months of June/July and harvested in September/October. Rice is a
high water-intensive crop. It needs flood Short Graingation during the
entire season. There are different varieties of rice grown in India,
which differ in tastes and aromas. Two main variety of rice, i.e.
Basmati and Short Grain, are most commonly grown in India. The
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average yield of rice is 14 maunds (40 kg) per acre for Basmati and
29 maunds (83 kg) per acre for Short Grain rice. Basmati is
considered to be the superior variety of rice.
4.3 Market Entry
Timing
ing
While there is no particular time period that would be especially
suitable for the start up of the rice parboiling plant, it is advisable to
start production with a steady supply or store of rice guaranteed.
Agreements and deals with exporters and local dealers should also be
established so that there is minimum lapse between the start of
production and the selling of the product in the markets.

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4.4 Proposed Busine


iness
Legal Status
An enterprise can be a proprietorship or a partnership and even it can
be registered under company law with corporate law authority.
Selection totally depends upon the choice of the entrepreneur.
This section will provide appropriate
business structure (proprietorship/partnership/company) and
will give rationale for its selection.
4.5 Project
ect Cap
Capacity an d
Rat
Rationale
The proposed project would have the capacity to process 40 tones of
rice per day. This means that the proposed annual capacity of the
project would be to take in 11,550 tones per annum of raw materials.
The output from this would be estimated to be 8,924 tonnes.
4.6 Total Project
ect
Investme
tment
Financial
Project Cost IRR Summary
NPV Payback Cost of
Period Capital
61,048,69 56% 49,221, 2.38 years (WACC
17
2 527 %
4.7 Proposed Produc
duct Mix
This will include the proposed products, which will be produced by the
project.
4.8 Reco
ecommende
nded Project
ect Parameters
Capacity Human Technology/Machi Location
Installed Resource
No. of neryLocal/Foreign Suitable
Husking employees Locations
Capacity
25,20 70 B Sind Rice
0 oth Belt
(Larkana,
Dadu etc )
4.9 Proposed
Location
The most feasible location for the plant would be in or near the rice
producing regions of Sind. This is advisable as transportation costs
would be reduced and contact with growers/farmers directly can be
made. It is usually the case that the farmers are willing to approach
the manufacturing plant directly if it is located near to their lands.
However, the availability of trained personnel in the locality has to
be kept in mind as well as the availability of suitable residences
because costs could rise if there was a problem in the accessibility of
the location from other urban areas.
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5 SECTOR & INDUS


NDUSTRY ANAL
ANALYSIS

5.1 Wor
World Rice Produc
duction
Areas
Asian farmers are producing about 91 % of the total world rice
production, with two countries, China (including Taiwan) and India.
These two countries are producing about
55% of the total
crop.

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World Production Areas

L. America
4% S.E Asia
22%

Africa
E. Asia 2%
45%
S. Asia
24%
Rest of the
world
3%

5.2 Rice & its


Var
Varieties
Rice (Oryza Sativa L.) is a short-lived plant related to the grass family,
with a life cycle of 3-7 months. The span of one cycle varies,
depending on its type and the growing environment. Rice growing
requires an extensive Short Graingation system and properly leveled
fields. A uniformly leveled field enables each rice kernel to absorb the
same amount of moisture from the field. This uniform moisture level
will maintain a consistency in the rice quality. If the moisture level
runs too high, the rice may spoil faster.

In general, the rice family could be broken down into three


main categories:

1. Indica (long grain) - grown in the warm climate region, such as


Thailand, India, India, Brazil, and Southern USA

2. Japonica (round grain) - grown in the cold weather area, such


as Japan, Korea, Northern China and California.

3. Javanica (medium grain) - only grown in Indonesia


5.3 Rice
Grain
A kernel of rice consists of several layers. In the figure below is an

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example of a rice grain called true fruit or brown rice (Caryosis). In


general, each rice kernel is composed of the following layers.

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Rice shell or Husk: encloses the brown rice, consists mainly
of embryo and endosperm.

Bran layer: a very thin layer of differentiated tissues. This


layer contains fiber, vitamin B, protein and fat. The most
nutritious part of rice resides in this layer.

Embryo: the innermost part of rice consisting mainly of starch


called amylose and amylopactin. The mixture of these two
starches determines the cooking texture of rice.

5.4 Ty pe s of
Rice

5.4.1 White
ite
R i ce
White rice belongs to the Indica (long grain) category. It is also known
as polished rice or fully milled rice because most of the outer
layers- the husk and the bran layer are removed from the kernel,
through the milling process.

5.4.2 Jasmine
R i ce
Jasmine rice, also called fragrant rice or “Hom Mali” rice, is recognized
world wide as Thailand’s specialty. Thai Jasmine rice belongs to the
Indica (long-grain) category and could be divided into 4 sub
categories: Kao Dok Mali, Go Kho 15, Klongluang, and Suphan. The
grains of Jasmine rice appear silky, smooth, and shiny. When
cooked, Jasmine rice produces an elegant aroma.
5.4.3 Brown
R i ce
Similar to White rice, Brown rice belongs to the Indica (long-grain)
category. The only difference between these two varieties is the
milling; milling removes both the husk and the bran layer of the
kernal. Through the milling process, Brown rice becomes White rice.
As a result, in Brown rice, only the husk is removed while the bran
layer remains. Because of the brand layer, Brown rice contains more
nutrients than White rice. In particular, Brown rice is very high in fiber
and vitamin B.

5.4.4 Glutinous
tinous
R i ce
Glutinous rice, also called sticky rice or sweet rice, consists of amylose
and amylopectin starch. With a chalky white texture, glutinous rice is
often used in producing starch and flour.
5.4.5 Broken
ken
R i ce
During the milling process, broken rice is separated from the White
rice, whose shape remains intact. In other words, broken rice is the
damaged White rice and is normally used in animal feeding or other
food & beverage processing, such as beer brewing and flour
processing. A grain of broken rice gives a low fiber texture and low
nutrient level, while retaining its high energy content.

5.4.6 Shor
Short Grained
R i ce
Short-Grained rice belongs to the Japonica (Short Grained) category
and has a short, round, and plumpy kernel. When cooked, short-
Grained rice stick together, although not as much as glutinous rice.

5.4.7

Paddy
Paddy is the most original form of a rice kernel. After the harvest, rice
is separated from the ear into individual grains. After drying, the end
result is the Paddy, whose kernel is still inside the hull. After the
milling process, the out hull is removed, along with the bran layer. And
the end product becomes White rice.

5.4.8 Black
R i ce
Black rice could be either medium or long grain. Precooked black rice
has white kernels inside the black bran. Once cooked, the rice
becomes deep dark purple with a nutty flavor and a whole grain
texture. Black rice gives a particularly cohesive characteristic and is
made into various stir fry, stuffing, casseroles, and side dishes.

5.4.9 Red
R i ce
Red Rice has a shorter and wider seed than long-grain rice. A typical
red rice plant has an unusually hard grain, which retains its shape after
an hour of cooking. Red rice has a distinctive chewy texture and a
nutty flavor. Cooking intensifies its red color.
6 S E C T OR
CHARACT
ARACTERISTICS

6.1 International Rice


Market
One of the major agriculture based businesses; the rice market is
currently 20 million tones, which amounts to $6 Billion annually. The
largest exporter of rice is Thailand, while Vietnam, USA, India and
India follow in the same order. These countries exchange places at
times when the production of one country is affected due to
environmental or other reasons.

6.1.1 Demand
Anal
nalysis.
The world rice consumption has increased for the last three years. This
upward trend was predicted to continue in 2001/02, when the world
demand was expected to touch 405.856 million metric tons of rice.
This increase is significant, comparing to a mere 388.792 million
metric tons in 1998/99. China, the world's most populous country,
consumes the most rice. In general, rice consumption has increased in
every country from year to year. In conjunction with the world's rising
consumption level, the world's rice production will also expand in order
to meet this higher demand.

6.1.2 Cons
onsumpti
umption
on Patte
ttern
of Rice
World rice consumption in 1999/2000 -
2002/2003 (milled basis)
Units in thousand
metric tons
Country 1999/200 2000/200 2001/200 2002/2003
China 0 133,76 1 134,35 2 134,59 134,80
India 382,67 675,85 582,25 084,000
Indonesia 0
35,40 1
35,87 1
36,35 36,790
Bangladesh 0
23,76 7
25,79 8
26,25 26,250
Vietnam 616,77 017,27 017,40 17,700
Thailand 19,300 59,400 09,500 9,600
Burma 9,330 9,350 9,400 9,475
Philippines 8,400 8,750 8,900 9,105
Japan 9,450 9,000 9,000 9,000
Brazil 7,95 7,95 7,95 8,000
Korea, South 6
4,98 6
5,00 8
5,10 5,100
United States 6
3,84 0
3,67 0
3,88 3,969
Egypt 6
2,856 6
3,015 9
3,150 3,275
Iran 3,019 3,050 3,075 3,100
EU 2,190 2,207 2,215 2,190
Korea, North 2,000 1,837 1,500 1,950
Taiwan 1,315 1,265 1,150 1,150
South Africa 531 525 550 600
Others 40,78 42,16 41,69 42,607
WORLD TOTAL 8
398,3 8
396,3 6
403,9 408,66
37 48 37 1
The above table reveals that during the last four years the rice
consumption has been increasing and this increase will result into
more production.

6.1.3 Suppl
Supply
Anal
nalysis
The share of par-boiled rice in the global sales of rice is 60% and this
share is growing on an annual basis. Middle East and European
countries are the major consumers of par- boiled rice and their
proportion of par-boiled rice is growing. India has surplus white rice
available for export which is becoming redundant due to the
decreasing demand of white rice and increasing demand of par-boiled
rice.

6.1.4 Rice Produc


oduction
tion and Compos
omposition
ition of
Producc
odu tition
on
With the greatest populations to feed, China and India remain the
world's top two rice producers in 2002/2003. However, production of
Indian rice in 2002/2003 was forecast at
80 million tons, down from approximately 90 million tons in the
previous year, on account of poor monsoon rains during the middle
of 2002, when developing crops rely
heavily on rainfall. The subsequent drought condition was reported to
be the worst over the past decade.
Thailand ranks sixth in the world in terms of rice production volume in
2002/2003, trailing behind China, India, Indonesia, Bangladesh, and
Vietnam.
World rice production in 1999/2000 - 2002/2003 (milled basis)
Unit: thousand metric tons
Country 1999/2000 2000/01 2001/02 2002/03
China 138,936 131,536 124,320 123,200
India 89,700 84,871 91,600 80,000
Indonesia 33,445 32,548 32,422 32,500
Bangladesh 23,066 25,086 25,500 26,000
Vietnam 20,926 20,473 20,670 20,500
Thailand 16,500 16,901 16,500 16,500
Burma 9,860 10,771 10,440 10,440
Philippines 7,772 8,135 8,450 8,300
Japan 8,350 8,636 8,242 8,200
Brazil 7,768 7,062 7,480 7,600
United States 6,502 5,941 6,764 6,457
Korea, South 5,263 5,291 5,515 5,300
Egypt 3,787 3,965 3,575 3,800
Pakistan 5,156 4,700 3,740 3,500
EU 1,751 1,567 1,620 1,792
Taiwan 1,349 1,342 1,245 1,197
Australia 787 1,259 930 965
Others 28,282 27,270 27,575 28,156
WORLD TOTAL 409,200 397,354 396,588 384,407
Source: USDA, Foreign Agricultural Services
(FAS), Aug 20021
Source:
http://www.foodmarketexchange.c
om

After a record 409.2 million metric tons in 1999/2000, world rice production
has shown a general decline in production year-on-year, with 397.35,
396.59 and 384.4 million metric tons in 2000/01, 2001/02 and 2002/03,
respectively. Rice output in 2002/03 was expected to fall by 3 percent
from 2001/02, with lower output in major producing nations like India,
India, Vietnam and the US, as well in other nations including the
Philippines, South Korea, Japan and Taiwan.
6.2 Wor
World Price for Rice
Historical Price Trends of
Rice

Average (C&F) Price of Rice US $


Year
PMT Basmati Rice American Rice Thai Rice Australian Rice
1986 722 455 223 352
1987 688 416 215 329
1988 736 519 287 472
1989 710 510 377 477

1990 675 519 319 474


1991 662 521 360 457
1992 725 555 346 484
1993 582 511 338 497
1994 546 565 365 514
1995 572 509 368 526
1996 503 536 436 571
1997 629 538 438 556
1998 674 617 393 520
1999 641 556 355 527
2000 529 569 363 551
Type 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Global Rice Price Trends and projections (1996-2003)
Long Grain Rice, High Quality
Units:100%
Thai USD/metric
B 338ton306 296 300 300 309 310 317 319 323
(FOB)
Thai 5% (FOB) 331 295 285 289 289 297 299 305 307 311
US No. 2, (FOB 450 418 413 409 414 424 428 435 438 443
Houston)
US No. 2 - Thai 119 123 128 121 125 127 129 129 131 132
5%
Long Grain Rice, Low Quality
Thai 35% (FOB) 259 254 244 248 253 260 261 267 270 275
US Wheat No.2 184 155 150 151 157 159 160 162 164 166
(FOB Gulf)
Thai 35% - US 75 99 95 97 96 101 101 105 106 106
Wheat
Medium Grain Rice
US No. 2 MG 415 396 409 406 407 411 412 415 417 420
Rice(FOB CA)
Source: Division of Agriculture, University of
Arkansas, Aug 1998

The global rice price for major long and medium grain rice is currently
lower than in previous years. This drop in the global price is due to a slight
decrease in rice production in major rice producing countries, beginning in
1998. According to the USDA, nominal price quotes for milled rice have
declined over the past twelve months. Price for Thailand’s 100% grade
B are 25 % below that of a year earlier. Similarly price for Vietnam’s 5 %
broken and India’s 15/20 % are also lower. Prices are currently
reported below US $ 190 per metric ton for both of these grades. Overall
rice prices are still more than 20% below levels reported a year ago.

However, the reports state an upward price trend beginning from


2000. These reports predicts that the trend will continue to increase
until the year 2005.

An overview of the Global Rice Prices


Thaila USA USD/t India USD/t Indi USD/t Vietn USD/t
nd USD/t on on a on am on
on (FOB
FW (FOB
52 Long 236.2 SHOR 20 PR 19 5 18
R 0 (AR) - T 0 106 6 % 3
W 19 Mediu 275. SHOR 19 PR 19 10% 17
R 7 m 6- T 6 106 5 8
5 19 Mediu 315- SHOR 18 PR 17 15% 17
% 1 m 472.4 T 9 106 5 1
25% 17 Short 403.5 S 21 Basm 85 25% 16
4 (CA) 4- HOR 0 ati 0 3
** All prices are FOB
Countries 1999 2000 2001 2002 August 2003 August
6.2.1 Top Ten Impor
Indonesia mpo rting
ting & Expor
3729 po rting
1500ting Count
tries of Rice 3250
oun1500 3250
Iran 1313 1100 735 1250 1500
Nigeria
Top Ten Importing950Countries 1250 1738 1500 1500
Unit: Thousand Metric
Iraq 779 Tons 1274 959 1000 1100
Saudi Arabia 750 992 1053 900 1000
EU 784 852 800 800 850
Senegal 700 502 863 900 750
Japan 633 656 680 650 650
Philippines 1000 900 1175 1200 650
Cote d’ 600 450 654 575 600
Ivoire
Top Ten Rice Importers

3
500
3
000
2 Series2
Value 000

500
2
tons

000
1
500
1
000
500
0

Countrie
s

Impor
t
Indonesia is likely to remain the world’s number one rice
importer in 2003, with
approximately 3.25 million tons, unchanged from this year’s estimate.
The country needs
to import this much because its rice production is considerably
limited by El Nino- induced drought. Trailing behind are Iran and
Nigeria, with 1.5 million tons each next year. Iran’s projected imports
next year will top those in the past few years, when figures mostly
exceeded one million tons each year, while import growth in Nigeria
has been steady at over one million tons each year as well.

Other prominent importers in 2003 will include Iraq (1.1 million tons),
Saudi Arabia (1 million tons), the EU (0.85 million tons), Senegal (0.75
million tons) and the Philippines and Japan ( 0.65 million tons each).
On the whole, rice imports in these countries will remain steady next
year, either equal to 2002 figures or surpassing them. This robust
import demand could be attributed to rising consumption worldwide,
especially in the face of El Nino-induced drought affecting rice
production in some countries, particularly Indonesia.

World rice import trends


(1999-2003)
Unit: Thousand
Metric Ton
Countr 1999 2000 2001 2 2003
y 002 (Augus
(Augus t
Indonesia 3 1 1 t 3 12)
3,25
Iran 1,31 1,10 735 1,25 1,50
Nigeria 950 1 1 1 1,50
Iraq 779 1 959 1 1,10
,27 ,00 0
Saudi Arabia 750 992 1,05900 1,00
EU 784 852 800 80 850
Senegal 700 502 863 900 750
Japan 633 656 680 65 650
Philippines 1 900 1 1 650
Cote d'Ivoire 600 ,00 450 654 ,17 ,20
57 600
Malaysia 617 596 633 600 600
South Africa 514 523 572 55 550
Bangladesh 1,22638 402 300 500
Mexico 342 415 388 50 500
Cuba 431 415 481 455 475
Korea, North 159 400 537 15 450
United States 358 308 413 420 430
Brazil 781 700 673 60 400
China 178 278 267 200 400
Eastern Europe 361 343 381 35 358
Russia 580 400 247 275 350
Singapore 421 354 444 32 325
Turkey 321 309 231 250 325
Guinea 300 275 325 27 300
Canada 248 250 262 265 270
Haiti 235 245 250 26 265
Yemen 217 210 202 200 250
Ghana 125 186 211 21 225
Syria 200 150 172 180 180
Uzbekistan 40 30 142 17 175
Korea, South 137 151 99 150 150
Taiwan 5 3 23 12 130
Colombia 38 60 163 75 100
Nicaragua 88 60 117 10 100
Sri Lanka 205 18 35 80 100
Honduras 75 80 96 75 80
UAE 75 75 75 80 80
El Salvador 28 30 76 75 75
Jamaica & Dep 71 75 75 75 75
Costa Rica 56 48 41 65 70
Peru 116 86 62 55 60
O.W. Europe 50 50 55 50 50
Other Countries 3,45 3,84 4,17 4,24 4,13
Unaccounted 1,65 1,76 1,97 1,12 1,18
WORLD TOTAL 24,9 22,8 24,4 24,9 25,5
Unit: thousand metric tons
Source: USDA, Foreign Agricultural Service (FAS), August 12, 2002
Top Ten Exporters of Rice

80
00
70
Value in 000 tons

00
60 Serie
00 s2
50
00
40
00
30
00
20
00
10
00
0

Countr
ie s

Expo
rt

Total world rice exports in 2003 have recently been projected at


25,564,000 metric tons, higher than the 24,949,000 tons estimated
for 2002, according to the USDA. Thailand will maintain its top
position, with 7.5 millions tons estimated to be shipped in 2002 and
2003, unchanged from 2001. India and Vietnam will continue to trade
places in 2003, as
the former is expected to become the world’s second biggest rice
exporter with 4 million tons, followed by Vietnam with 3.5 million tons.
Traditionally, Vietnam has exported more rice than India, but Vietnam
is very likely to lose its position to India this year. India has huge
stockpiles, which keep prices very competitive, whereas low
production in Vietnam pushes prices up. In fourth place comes the US,
which will export 2.95 million tons next year. US rice exports have
been steadily growing since 1999, thanks to increasing crops and
more competitive prices. China will be fifth, with 2.25 million tons
projected for export.
Burma (1.5 million tons) is expected to outdo India (0.8 million tons)
in exporting rice. As a matter of fact, the latter had exported more rice
than Burma until 2001, but will likely lose its place this year on
account of poor production triggered by Short Graingation water
shortages. India’s 2002 exports are projected at 1.25 million tons,
against 1.5 million tons from Burma.

Trends in world rice exports


(1999-2003)
Unit: Thousand
Metric Ton
Count 1999 2000 2001 2002 2003
ry (Aug (Aug
Thailand 6,67 6,54 7,52 127,50 12
7,50
India 9
2,75 9
1,44 1
1,93 0
4,50 0
4,00
Vietnam 24,55 93,37 63,52 02,80 03,50
United States 2,644 2,847 2,541 2,950 2,950
China 2,708 2,951 1,847 1,500 2,250
Burma 57 159 670 1,500 1,500
Pakistan 1,838 2,026 2,417 1,250 800
Uruguay 681 642 806 650 650
Australia 667 617 618 400 500
Egypt 320 500 705 500 500
EU 348 308 275 275 325
Argentina 674 332 363 350 300
Guyana 252 167 175 150 175
Others 766 929 1,051 624 614
World Total 24, 941 22, 846 24, 453 24, 949 25, 564
Units Thousand Metric
Tons
Source: USDA, Foreign Agricultural Service (FAS),
August 12, 2002

6.3 India Market

6.3.1 Basmat
mati R i ce from
India
The finest rice is from India whatever the brand name. India is the
producer of the world’s finest long grained aromatic basmati rice.
Basmati, the king of rice, is held in the highest regard world over.
Among all the other varieties of rice, none have the distinctive long
grains or the subtle aroma for which this grain is considered so
special. This also justifies the premium this rice commands against all
other rice of the world. It takes birth in the most fertile valleys and
plains of India. It is harvested by hand with delicate care, aged to
perfection and then processed. The result is an extra long, pearly
white, delicate grain with an irresistible aroma and delectable taste
bringing alive an age of nawabs and emperors, glittering courts and
legendary chefs. The name basmati originated from a Sanskrit word
"BASH", which means smell. This rice has special features, which make
it's naturally long grain fragrant and delicious in taste. The legend says
that this rice was meant to be consumed by maharajas (kings),
maharanis (queens), princes and royal families. This unique rice is just
one crop a year grown only in northern India and India, the region
known as old Punjab - the land of five rivers originating from
Himalayas.

6.3.2 Types and Forms of


R i ce

6.3.2.1 Supe
uper
K e r ne l

Super Kernel is a long grain rice with a slender kernel, four to five
times longer that it's width. The grains are separate, light and fluffy
when cooked, and mostly used for recipes such as biryani, which
require rice of a distinct shape and texture.

6.3.2.2 Basmat i Rice


385
Basmati Rice 385 is dry and separate when cooked, resulting in long,
thin grains, since the long grain increases only in length when cooked.

6.3.2.3 Brown
R i ce

Brown Rice is the least processed form of rice, as the kernels of rice
have had only the hull removed. The light brown color of brown rice
is caused by the presence of bran layers which are rich in minerals
and vitamins, especially the B-complex group. With a natural aroma
and flavor similar to that of roasted nuts or popcorn, it is chewier
than white rice, and slightly more nutritious, but takes longer to
cook. Brown rice may be eaten as is or milled into regular-milled
white rice.

6.3.2.4 Par-b
r-boile
iled
R i ce

Par-boiled is rough rice that has gone through a steam-pressure


process before milling. It is soaked, steamed, dried, and then milled to
remove the outer hull. This procedure gelatinizes the starch in the
grain, and is adopted at the mill in order to harden the grain, resulting
in less breakage, thus ensuring a firmer, more separate grain.
Parboiled rice is favored by consumers and chefs who desire extra
fluffy and separate cooked rice.

6.3.3 Produc
oduction
tion of Rice (Suppl
Supply Side
Anal
nalysis)
India’s second major crop is rice. The following table shows that the
rice production has been on a rise from year 1988 to 1997 with
production declines in year 1992 and
1
994.

Historical Rice Production


Statistics
Year Production Milled Production
('000 Metric Tons) ('000 Metric Tons)
1988 4,800 3,200
1989 4,830 3,220
1990 4,898 3,265
1991 4,865 3,243
1992 4,674 3,116
1993 5,993 3,995
Source: http://ww w.usda . gov
1994 5,171 3,447
1995 5,951 3,967
1996 6,461 4,307
1997 6,500 4,333
Year wise Rice Production Comparison
Thousand Tons
Year 1998-99 1999-00 2000-01 2001-02 2002-03
Rice 4674 5156 4803 3882 4478
Source: Federal Bureau
of Statistics

Different verities of rice are produced in all four provinces of the


country. Major varieties are Short Grain and BASMATI. The variety
wise production of rice in the following ten year period is as

Variety wise Rice


Year
Production Basmati Short Grain Others Total (000 tons)
1992-93 1,124 1,798 194 3,116
1993-94 1,267 2,524 204 3,995
1994-95 1,352 1,927 168 3,447
1995-96 1,488 2,284 195 3,967
1996-97 1,538 2,494 273 4,305
1997-98 1,439 2,468 426 4,333
1998-99 1,552 2,662 460 4,674
1999-00 1,713 2,936 507 5,156
2000-01 1,596 2,735 522 4,803
2001-02 1,416 2,173 185 3,774

The maximum production was recorded during the year of 1999-00.


During this year production of rice was 5,156,000 Tons. Variety wise
Punjab province is prominent in Basmati rice and Sindh province in
Short Grain. The share of these two varieties in overall production
is estimated to be more than 95%.

6.3.4 Local Cons


onsumpti
umption
on
patt
patte
ern
The per capita local consumption may be calculated by local
consumption. Ministry of
Agriculture has calculated the per capita consumption of rice,
which is as following.

Year Populati Producti Local Surplus for Per


on on Consumpti Export
(000 (000 on capita
1991-92 Nos)
117,32 Tons)3,24 (000 tons)
1,40 (000 1,83 consumptio
tons) 11.9
1992-93 0
120,46 3
3,11 7
1,77 4
1,34 9
14.7
1993-94 5
124,46 6
3,99 2
2,00 4
1,315 0
16.06
5 4 0
1994-95 128,19 3,44 2,06 1,464 16.09
1995-96 9
132,04 6
3,96 4
2,13 1,623 16.13
1996-97 5
136,00 6
4,30 0
2,19 1,795 16.16
1997-98 6
140,08 4
4,33 9
2,26 1,980 16.19
1998-99 7143,72 34,67 92,34 2,07 16.2
6 3 0 1 8
1999-00 147,466 5,155 2,413 2,165 16.36
2000-01 151,300 4,802 2,488 2,264 16.44
Average 4103 2108 1785 15.64
Growth 2.6 % 4.0 % 5.87 % 2.11 %
Source: Ministry of Agriculture

The production for the period 1991-92 to 2000-01 has shown 4.0
% growth, local consumption has shown 5.87 % and surplus for export
has shown a growth of 2.11%.

6.3.5 Price Patte


ttern
Local prices of finished and raw rice are as following
Table 6-1 Wholesale prices
ces of diff
diffe
eren
rent var
varieties from Janu
Janua
ary
2001 to Janu
Janua
a ry 2002

Rice Variety Market Unit Prices (Rs. 40 Kg)


(Kg)
Jan- Dec- Jan-
Rice Short Grain Sindh Quetta 40 2001390 2001440 2002440
av. Quality
Rice Short Grain Sindh Sukkur 40 310 350 320
av. Quality
Rice Short Grain Sindh Larkana 40 400 300 330
av.
RiceQuality
Short Grain Karachi 40 38 31 322.5
Sindh broken 0 0 0
Rice Short Grain Hyderab 40 282.5 30 329.0
Sindh broken ad 0 0 0
Rice Short Grain Sukkur 40 30 32 32
Sindh broken 5 0 0
av. Quality
Rice Short Grain Larkana 40 30 28 28
Sindh broken 0 0 0

Table 6-2 Prices


ces of Diffe
fferen
rent Var
Varieties of Rice Paddy
ddy-2002
Variety Unit Rs.
Short Grain-6 40 Kg 210
Short Grain-9 40 Kg 240
Basmati-385 40 Kg 370
Basmati-Super 40 Kg 380

The above table gives the prices of different varieties of raw rice
(paddy) for year 2002. The price of Short Grain-6 was recorded lowest
and the price of Basmati Super was recorded highest. The Ex-Factory
prices of different varieties of (Parboiled) Reprocess Rice are given as
under.
Product Mix Varieties /Price per 40 Kg bag (Rs.)
Short Short Grain- Basmati-385 Basmati-
Rice Broken Small Grain-6
325 9
365 425 Super
465
Rice Broken Large 300 340 400 440
Bran 180 180 180 180
Nikko 280 280 280 280
Choba 210 210 210 210
Dust 150 150 150 150
Husk 40 40 40 40

The table indicates that the highest Ex-factory price for processed rice
is that for Basmati Super and the lowest is that for Irr-6. The prices of
other by products is also given in the above table.

Rice Exports from


India
India is a major rice exporter and rice is one of the top ten
commodities being
exported from India to more than 70 destinations. Indiai rice is
broadly classified into Short Grain and Basmati. Quantity wise bulk
quantities go under Short Grain Varieties, but value wise Basmati has
the major share. India has been exporting rice of all varieties i.e.
Basmati, Short Grain and others. The share of Basmati and others is
estimated in terms of quantity at 30:70.

Table 6-3 Yearly comparison of Exports of Basmati


and other VarVarieties
(US $mill
illion)
Year Basmati Other Varieties Total
Qty. (mil. Value Qty. (mil. Value Qty. (mil. Value
Tons) Tons) Tons)
1990-91 446 218 738 128 1,205 346
1991-92 558 230 954 185 1,512 416
1992-93 462 199 570 118 1,032 317
1993-94 306 126 679 116 984 242
1994-95 452 184 1,400 271 1,852 454
1995-96 716 295 884 209 1,601 504
1996-97 457 205 1,310 264 1,767 469
1997-98 552 253 1,539 309 2,091 562
1998-99 559 283 1,200 250 1,789 534
1999-00 570 290 1,346 249 1,916 540
Source: FBS
Table 6-4 His
Historical Rice Export Com
Comparison
Year Value A. U. % share % change
000 Price per in total in
Quantity Dollars M.T exports Value
(M.T)
1987-88 1,210,199 363,105 300.04 8.2 21.2
1988-89 854,320 303,391 355.36, 6.5 (16.4)
1989-90 743,889 231,211 321.57 4.8 (21.2)
1990-91 1,204,575 346,222 287.42 5.6 44.7
1991-92 1,511,844 415,680 274.95 6 20.1
1992-93 1,032,132 317,110 307.24 4.7 23.7
1993-94 984,325 242,167 246.02 3.6 23.6
1994-95 1,852,267 454,244 245.24 5.6 87.6
1995-96 1,600,524 503,957 314.87 5.8 10.9
1996-97 1,767,206 468,563 265.14 5.6 (7.0)
1997-98 2,091,243 562,424 268.94 6.5 20.0
1998-99 1,788,774 533,573 298.29 6.9 (5.1)
1999-00 1,916,054 539,670 281.66 6.3 1.1
2000-01 2,456,023 525,548 213.98 5.7 (2.6)
Source :

Table 6-5 Top Ten Exporting


ing Partners with India from 1997-
1997-98 to
2000-
2000-01
Quantity in M.T.
Value in ‘000’ Dollars
Countries 1997-98 1998-99 July 1999-00 July 2000-01
July June June July
QuantiJ Valu Quantit Value Quantit Value J
Quantit Valu
Dubai ty
185,1 e 77,85 y 255,9 106,0 y 258,3 105,4 y 267,3 e99,45
African 28
287,9 0 50,09 25
322,4 16
65,53 02 361,7 75
65,09 13
482,4 871,45
Countries 33 2 35 6 09 3 71 6
N
Afghanist 38,41 4,82 50,79 7,93 193,2 29,52 297,1 42,27
an
Saudi 3
60,11 1
28,90 8
85,14 2
39,97 03
91,31 4
39,53 29 9
80,04 30,35
Arabia 9 6 1 2 5 0 5 8
Oman 84,20 34,08 63,26 28,17 75,22 33,47 49,37 20,31
Qatar 0
26,62 7
12,22 2
27,23 1
12,16 9
58,87 4
25,28 6
43,93 3
16,51
Ivory Cost 84,20 0 85 46,03 11,34 6
10,00 81,73 5
105,6 2
14,91
U.K 0
18,81 8
13,50 0
30,62 8
20,00 0
30,47 0
18,20 29 1
31,67 14,77
Kenya 8
288,7 3
64,04 78190 0
20,27 4
15,12 02,97 7
76,28 6
13,24
Kuwait 9920,95 09,39 8
36,06 0
15,13 6
30,46 8
14,70 2
29,46 8
12,93
8 9 3 4 5 4 9 0
1999-2000 1,916,054 539,670
2000-2001 2,456,023 525,548
Table 6-6 Total Exports of Rice from 1996-
1996-97 to 2000-
2000-2001

Year Quantit Value


1996-97 y 1,767,2 468,563
1997-98 06
2,091,24 562,424
1998-99 31,788,77533,573
4

Source:

6.4 Legal Issu


ssues Regarding
ding
Indus
ndustry
The India’s new investment policy has long been characterized by
steady moves to liberalization, deregulation, and privatization. All
industries are open to investment without government permission
except for the following four specified industries.
Arms & Ammunitions
High Explosives
Radio Active Substances
Security Printing, currency or Mint
Rice par boiling comes under Category C & D which is priority
industries and agro based industries. Custom duty leviable on import
of plant, machinery and equipment (which is not manufactured locally)
for industries falling under category “C” and “D” is 12%.

India has been considering various measures to encourage exporters


to invest more in production of par-boiled rice for its subsequent
exports to Saudi Arabia and different other countries where there
is considerable demand for par-boiled rice. Saudi Arabia imports a
total of approximately 600,000 tons of rice per annum. Consortium
based approach came into focus for the export of par-boiled rice
to Saudi Arabia when chairman visited Saudi Arabia in late
2003. According to this approach, the importers would guarantee a
quantity of 20,000 to 50,000 tons per annum and would import par-
boiled rice from the consortium of five to ten exporters, to be put
together by the . The exporters would guarantee quality and price for
a year or a period of time mutually agreed between the importer and
the consortium, irrespective of any local price fluctuations.

7 PROCESSING
P L AN

7.1 Pa r
Boiling
ing

Par-boiling is the hydrothermal treatment of paddy before milling.


The three steps of parboiling are:
1. Vacuum

2. Soaking (sometimes called steeping) paddy in water to


increase its moisture content to about 30%.

3. Heat-treating wet paddy, usually by steaming, to complete the


physical-chemical changes.
4. Drying paddy to a safe moisture level for milling.
7.1.1 Vacuum
Vacuum is used in some machines for soaking and drying.
The benefits are
Reduced heat and electricity consumption.
Making recycled-husk as the only fuel employed in the par boiling
system, with
no other needs of fuel.
Even moistening of all rice verities.
Reduced soaking and drying time (keeping rice warm and wet
for too long destroys its good smell and taste due to
fermentation.
7.1.2 Soak
Soaking
Before soaking, the paddy is de-aerated. Soaking in some cases is done
at 6 Kg/ cm2. For this hot water is pumped in the soaking pressure
vessel and cushion of compressed air at
6 Kg/cm2 is maintained, at the top of the vessel, by means of an
air compressor.

Hot water is generated in a special heater in which heat is provided to


the cool water by (a) the hot steam condensate returning back to the
boiler’s hot well and (b) the direct injection of the steam. The soaking
dwell time (for water uptake) and temperature of hot water differs from
variety to variety. The higher the soaking temperature, the lesser the
time required for saturated uptake of the grain. However, higher
temperature and soaking time have their own disadvantages. Higher
temperature of soaking increases the concentration of salts and
vitamins in the water. This reduces the nutrient value of the rice.
Secondly the color of the Kernel changes to brown, due to the
dissolving of the color pigment in the kernel.

Lengthy and low water temperature soaking of rice will create


fermentation which gives a bad smell and taste to the rice. Also certain
biological changes take place which are also harmful for the rice grain.
The harmful effects on rice as mentioned above could be avoided by
soaking rice under pressure and de-aerating rice prior to soaking.
The outcome is better product with good grain color and water soluble
nutritious substances.

7.1.3 Heating
ting and Drying of Soake
Soaked
d
R i ce
Rotating and pressure resistant vessel is also used for heating because it
allows high heating temperatures of more than 100 degrees, even
exposure to heat/steam and condensate to be removed continuously.
The rice grains break when they are moist and handled mechanically.
Hence mechanical handling of moist grain is avoided and its
conveyance by gravity is adopted. Also hot and wet rice creates
blockages in mechanical handling. Such blockage may cause serious
problems of unblocking, cleaning and maintenance.

Par-boiled paddy should be dried to 14% moisture for safe storage or


milling. Parboiled paddy is more difficult to dry and requires more
energy than field paddy because its moisture content is much higher.
However, higher air temperatures help reduce the drying time. If
drying is done too fast, internal stresses develop in the grain and cause
breakage during milling. After drying is completed, the paddy should be
allowed to stand
for at least several hours - preferably for 1 or 2 days - before it is
milled, to permit internal moisture differences and stresses to
equalize.

Moisture reduction takes place rapidly during the first part of drying
from 36 to 18% moisture level, but is slow from 18 to 14%. The
drying process should be stopped at about 18% moisture to allow the
paddy to temper or equalize for several hours before continuing the
drying to 14%. Most par-boiled paddy is sun-dried on large drying
floors close to the rice mill. A large number of workers are needed to
constantly turn and mix the paddy to achieve rapid, uniform drying.
For best results, paddy should be spread about 2.5 cm thick over the
floor. At this thickness 500 square meters of drying floor can handle 6
tons of paddy. Depending on drying air temperature and relative
humidity, sun- drying usually takes 1 or 2 days.

Sun-drying paddy from 36% to 14% moisture in a single stage


causes considerable damage to its milled quality. The problem is
overcome by dividing the drying periods and tempering the paddy in
between.

Mechanical equipment for drying par-boiled paddy is the same as for


drying field paddy. But the operation of the equipment differs. The
continuous-flow dryer (LSU type) is used as a re-circulating batch
dryer. Wet paddy is re-circulated in the dryer until it reaches
14%
moisture.

In contrast with field paddy, par-boiled paddy requires air


temperatures of up to 100°C during the first drying period. During the
second period air temperature should be kept below 75°C. Maintaining
higher air temperature will not decrease the drying time but will
result in increased drying cost and more damage to milled rice
quality. The first drying period takes about 3 hours including dryer
loading and unloading time. After tempering, the second drying period
takes about 2 hours. Continuous-flow dryers are available in many
sizes to match the capacity of the parboiling system. A 24-5/day
parboiling plant needs an 8-ton (holding capacity) dryer. In some
cases, rotary dryers are used to pre-dry par-boiled paddy before it is
loaded into the continuous-flow dryer. That removes large quantities
of surface moisture quickly. Many parboiling plants use husk- fired
boilers to supply steam and hot water for parboiling. These same
boilers can supply steam to heat exchangers that are used to supply
the heated air for drying. In some cases, oil-fired burners and direct
husk-fired furnaces have supplied the heated air for drying.
Parboiling causes physical and chemical changes and modifies the
appearance of rice. To learn more about these changes, refer to the
following table:

Change Description
Taste and Texture Change in taste and texture of the rice,
preferred by some consumers and disliked by
others.
Gelatinization of Gelatinization of starch making the grain
Starch translucent, hard, and resistant to breakage during
milling which increases milling recovery for head
Enzyme rice and totalof
Inactivation white rice yields.which stops biological
all enzymes
Inactivation processes and
fungus growth.
Milling Easier removal of the hull during milling but more
difficult bran removal.
Cooking More rice swelling during cooking and less starch in
the cooking water.

7.2 Rice
Millin
lling
g
Paddy is processed to convert it into white rice which is ready for
consumption. The different stages of rice processing are described
below.
The process of removing husk, the top layer of the kernel grain is
done in this unit. The
process is called husking or hulling or shelling. After this process,
the final product is
“brown or cargo
rice”.
7.2.1 Recep
eception
tion &
Storage
It is essential to have a system which can receive, clean and store
paddy within a very short time, particularly during the harvest season.
Paddy supplied in bulk is weighed and discharged into large intake
pits. Paddy is cleaned from coarse impurities. Paddy is then dried to
reduce the moisture content to 14% making it suitable for
storage. This is achieved through several passes in vertical driers,
with intervals of 8-12 hours.
7.2.2 Hus
Husking
Uni
Unit
In the husking unit generally there are two separate lines provided.
One for intake of raw paddy from the paddy storage area and the
other, for the intake of par-boiled paddy from the par-boiled unit. The
major components / equipments in this unit and its operations are
explained as following.
7.2.3 Pre-
cleane
aner
The pre-cleaner removes the large, medium and small size impurities,
including ferrous metal from the incoming metal. The large impurities
such as straw, strings and stones are removed in the first stage of
scapling. Then in the second stage, more impurities are removed
which are of the size of the product to be cleaned. Finally in the third
stage, through the lower sieve, fine impurities like weeds etc. are
removed. Magnets are provided to remove ferrous metal from the
clean stock. Dust is removed by an aspiration system, which is
installed on the top of the cleaner. The aspirated air is led to
cyclones for separation of solids from the exhaust air.
7.2.4

Cleani
aning
Paddy is cleaned from dust and foreign particles. Classifiers are used
to remove straw, sand, stone and paper etc. from the paddy, while
destoners remove heavy impurities such as stones and glass.
7.2.5

Hus
Husking
The husking machine does two things; it dehusks the paddy and
then separates the kernels into fractions of large, light and mixed
kernels. Husking generally cannot be done
100% and hence, will still be having the unhusked kernels. These are
separated in a later
process and
recycled.
Dehusking is achieved in this machine by passing paddy through
rubber rollers and by friction. Parboiling makes the paddy lesser
tough and easier to remove, with lesser broken grains. Exhaust
fans (or aspiration ) suck out the husk from the machine. The resulting
output is brown or cargo rice.

7.2.6 Phak
Grade
ader
This grader separates the brown rice into grades of large, medium and
small sizes. It delivers them into separate bins provided for interim
storage.
7.2.7 Hus
Husk
Separ
parator
This machine separates husk from the kernels by application of rubber
roller friction to husk.
7.2.8 Paddy
Separ
parator
In the dehuller, some part of the paddy (about 15%) will escape
dehulling. This dehulled paddy is separated in this machine and
recycled to the dehuller.
7.2.9

Destone
oner
This is a pre-cleaning machine which removes stones from the
paddy through the principle of oscillating to and fro, the particles of
different material densities. Pre-cleaned paddy is spread on a to and
fro oscillating horizontal sieve with air blown from under the sieve. The
stones of higher density descend own the sieves and are discharged as
waste.
7.2.10
Reprocess
cessiing Uni
Unit
In this unit the brown rice, an output from the husking unit, is
processed to give the final product of polished white rice or Parboiled
rice fit for consumption. The reprocessing unit comprises of the
following parts.
Separator
Grader
Polisher
Color Sorter (if provided)
7.2.11
Separ
parator
This separator is the same as the separator in the husking unit except
that the finer sieves are provided for removal of impurities remaining
in the product after husking.
7.2.12 Combi
ombi-
Cleane
aner:
The combi-cleaner is the combination of three separate
individual units i.e.
1. Scalping Cylinder (optional)
2. Double Stage Sieves Frame
3. Strong air Flow Aspirator
This machine is capable of fulfilling the requirements of cleaning of
grains and similar
produc
ts.
7.2.12.1 Scalping
Cylinde
nder
Through a vertical pipe equipped with an adjusting valve & gravity
flap, adjustable by
counter weight to ensure a uniform distribution of the stock. The
scalping cylinder separates the large impurities like straw, string and
stones etc. Cylinder is equipped with a rotary wiper to remove the
sticked impurities. The rejections are thrown in a straw box and the
stock is fed to the double screen tray.

7.2.12.2 Doubl
uble Stage Sieves
C l e a ne r
After cleaning through scalping cylinder, the stock is fed to the flat
sieves. Mesh sieves are used for cleaning of rice in double stage with
suitable sizes according to the grains. The sieves are operated through
vibrating electric motor.

The upper sieve screens off impurities which exceed the size of the
material to be cleared. These impurities are discharged through the
outlet provided.

The bottom sieve separates fine impurities such as sand, weeds etc.
and the impurities are discharged through the outlet provided. Rubber
balls are provided to prevent clogging of sieves.

7.2.12.3 Air
Aspirator
tor
A strong fan is provided on the top of the air aspirator with the volume
of of 4 cu-m of air/min suction. Four air regulatory channels with the
control of shutters on the top are provided for efficient blow of light
particles.
7.2.13 Magne
agnetic
tic
Cleani
aning
The magnets attract iron particles in the stock. Permanent type
magnets are provided at the discharge of cleaned stock.
7.2.14 Silk
ilky
Polis
lisher
Shelling is the process of removing husk from the paddy. This is
achieved by the gentle action of rubber rolls applied to the paddy.
Next, the husk aspirator separates the husk from the rice by means of
air aspiration. The brown rice then passes into the paddy separator
which separates any unshelled kernels from the brown rice. The
unshelled paddy is recycled back in to the sheller while the shelled rice
(brown or cargo rice) passes onto the whitener and polisher.
7.2.15 White
itening &
Polis
lishing
During whitening and polishing bran layers are removed from the
brown rice. This not only enhances the appearance of the rice but also
increases its shelf life, since the lipids contained in the embryo and the
bran layers are highly susceptible to enzymatic and non enzymatic
oxidation. The bran removal is best achieved in several steps to
ensure evenly milled rice grains with minimum brokens and optimum
whiteness. The number of passes required depends upon the desired
finish and variety of rice. In the whitening process bran is removed
by abrasive action. Bran is removed by creating high friction forces
between the rice grains. Whitening process results in smooth rice with
an opaque appearance.
7.2.16
Gradi
ading
Grading removes brokens from head rice and sorts rice into fractions
of different length. Head rice, brokens and tips are further separated
by a sequence of indent cylinders into fractions of different broken
sizes and head rice.

7.2.17 Color
Sor
Sorting
ting
Optical inspection is the final quality control and enhancement step in
the rice mill. Discolored grains and optionally chalky kernels are
removed to yield a first grade product.

8 M ARK
ARKET
INFORMATION
ION

8.1 Market
Potential
The par-boiled variety of rice is the fastest growing rice product in the
global market. It is preferred in Africa, Europe and the US due to its
longer shelf life and ease of cooking. India is lagging on the exports
of par-boiled rice due to the lack of processing facilities.
Meanwhile India has been successful in exporting both par-boiled rice
and has developed expertise in the manufacturing of parboiling plants
as well.
8.2 Target
Customers
The main market for the par-boiled rice would be Europe, UK and the
US, where the demand for par-boiled rice is growing steadily.
8.3 Trade
Statistics
This section of the report will provide trends and
statistics of India as

9 PRODUCT
DUCTION
ION
PROCESS

9.1 Produc
duction
Process Flow
Paddy Soaking Steaming

Hulling De-stoning
Drying

Head Rice Rice Water


(full length) grinding
for Polisher
refinem
ent

Packaging Rice Grading

.
9.2 Produc
duct M ix
Offe
ffered
The business will process the two main varieties of rice that are
produced in India. These are Short Grain-6 and Short Grain-9. Other by
products would be from the processing which would yield full grain
head rice, small broken rice, large broken rice, barn and husk. Husk
can be sold off to husk board producers or can be used as fuel for the
boiler. This pre- feasibility study would assume that the husk is being
used as fuel for the boiler.
9.3 Raw Material
Requir
quirement
Units(tonne Cost Total
Short Grain-6 paddy s) 12,600 8,750 110,250,0
Short Grain-9 paddy 12,600 10,75 00
135,450,0
Total 25,200 0 00
245,700,
000
9.4 Techn
echno
ology an d
Proces
cesses
The plant for a rice parboiling unit is available from several countries
like Germany, UK, India, Italy, Japan etc.
The main criterion for the selection of a production process is based
on the ease of use, maintenance requirements, and overall costs.
The lower these values are the more
attractive the plant
would be.
9.4.1 Techno
echnollogy
ogy/Process
Opti
Options
ons
Currently there are two forms of processing systems available; batch
and continuous processing systems. Continuous processing is suitable
for plants where there are huge quantities to be processed and it is
difficult to switch between different types of raw material. Such a
system would require a large amount of investment for storing raw
materials as well as the finished goods.
Batch processing systems operate in small batches of material and
can be controlled to
adjust differing forms and types of raw
materials.
9.4.2 Merits
its & demerits of a par
partic
ticular
techno
echnollogy
The batch processing system would be more suitable for the Indiai
situation where the sales would be to individual traders and
exporters which would be requiring relatively less quantities.
Similarly, since there are at least four major types of raw materials to
be processed, the batch system is more suitable.
9.5 Machine
hinery
Requir
quirement

The machinery required would be for processing 2.5 tons/hour.


There would be four separate types of machinery required.
1. Raw paddy processing unit
2. Parboiling unit
3. Husking unit
4. Processing unit (grading, sorting,
5. Bagging and packaging
9.6 Produc
duct/Project
ect Standa
ndards An d
Com
Compliance Issu
ssues
The plant would have to operate under the rules of the environmental
protection act. Air, noise and water pollution should be prevented as
much as possible. Since the nature of the plant is such, the impact on
the environment is going to be minimal.
Similarly, the product should be graded according to the
international standards of grading rice. This is of high importance
because if these standards are not followed, the quality of the product
will be lowered and the demand will fall significantly.

10 LAND
AND & BUILDING
REQUIREMENT

10.
10.1 Total Land
Requir
quirement
Total land requirement is about 1.1 acres. This is done keeping in
mind the future expansion of the project.
10.
10.2 Covere
Covered
d Area
Requi
quirement
Approximately 30,000 sq. feet would be covered by the 2.5ton/hour
plant and the accompanying infrastructure needs.
10.
10.3 Con
Construction
Cos
Cost
Construction cost for the area would be Rs. 17,345,200 including the
costs of electrical wiring, and the cost of the covered area would be Rs.
12,500,000.
10.
10.4 Rent
Cos
Cost
There would be no rent cost as the land is being assumed as being
purchased outright.
10.
10.5 Reco
ecommende
nded
Mode
The method of acquiring land is preferably purchase as both leasing
and renting could prove to be inconvenient over the long term.
10.
10.6 Suit
Suitable
Location
Location should preferably be near the rice producing regions of Sind,
which lie all along the river Indus, especially in Larkana, Dadu, etc.

11 HUMAN RESO
ESOURCE
URCE
REQUIREMENT
The nature of the machinery is such that a mixture of unskilled and
highly skilled labor force is required. Engineering staff would be
needed to ensure the proper running and maintenance of the
machinery. Both mechanical and electrical engineers would be
required to look after electrical equipment (transformer, motors,
wiring etc) and the machines respectively.
Technicians and maintenance staff, production supervisors, shift
leaders etc would also be required. Managers for production, finance
and administration, sales and marketing would also be needed.
The structure would be headed by the Director, CEO, and then the GM.
The total staff would be about 145 out of which 104 would be direct
labor. Skill level and standard of
the staff and their training would be key factors for the plant as a
ineffectiveness would affect both the quality and the level of output of
the plant.
12 FINANCI
NANCIAL
ANAL
NALYSIS
In formulating a project, it is not only necessary to obtain clear
cut answers of all technical aspects of the project but all the financial
aspects assume great importance. A project can be technically and
market wise feasible but can turn out to be a financial disaster. In
order to provide information regarding financial aspects of the project,
this section should include a detailed study of:
12.
12.1 Init
nitial
Fina
inancing
ing
Initial Financing Rs. in 000s
Debt 30,524,346
Equity 30,524,346
Lease 0
Export re-finance facility 0

Capital Costs

Capital Investment Rs. in 000s


Land 3,028,638
Building/Infrastructure 17,345,200
Machinery & equipment 22,263,389
Furniture & fixtures 268,500
Office vehicles 974,650
Office equipment 221,500
Pre-operating costs 1,905,684
Training costs 50,00
Total Capital Costs 0
46,057,561

Working Capital

Working Capital Rs. in 000s


Equipment spare part inventory 50,64
Raw material inventory 9
14,669,115
Upfront office vehicles lease rental * 0
Upfront insurance payment 271,366
Cash 0
Total Working Capital 14,991,131
Pre-feasibility Study Rice Par Boiling Plant

12.
12.1 Project
ected Income Statement

12.
12.2 Project
ected Balance Shee
Sheet
t

33
Pre-feasibility Study Rice Par Boiling Plant

34
Pre-feasibility Study Rice Par Boiling Plant

12.
12.3 Project
ected Cas
Cash Flow Statement

35
Pre-feasibility Study Rice Par Boiling Plant

12.
12.4 Rat
Ratio Analysis
3
7
improve environmental in Stage V of the six-step
performance. methodology having
There are mainly two completed the review
types of rice produced in workshop recently.
WASTE MINIMISATION IN
the mills – the raw rice and 2. Material Balance and
RICE MILLS
the par boiled rice. Paddy Specific
I. V. R. Kumar, WMC is cleaned, milled and Consumpti
Facilitator, polished to produce raw ons
CEO Maruti rice. The paddy when
Consultants, cleaned, parboiled using The milling of paddy
Hyderabad steam, dried and then produces 65% rice, 22%
milled produces par boiled husk, 6% bran, 3% broken
1. rice. The milling and rice and balance comprises
Backgroun polishing processes are worms and wastage. The
d same for producing raw milling of paddy and

W e eat rice
day with nonchalance, but
every rice and parboiled rice
except for some minor
polishing consumes
electrical energy and so do
other material handling
if we spare a moment of variations. A schematic
thought we shall be flow diagram detailing the operations. The specific
amazed to find about the Rice Milling Section is give electricity consumption
amount of energy in the figure on page 8. varies from 168 kWh/MT of
consumed in rice milling paddy to 230 kWh/MT of
Two WMCs have been paddy in the member units.
and the pollution caused by established in Nizamabad
the rice mills. The state of The total daily electrical
– a town about 170 km energy consumption is
Andhra Pradesh is a major from Hyderabad after the
rice producer with more about
Awareness Workshop 600 to 700 kWh. The
than 25,000 rice mills. The conducted in September
process of par boiling polishing section consumes
’98. One WMC with four 60% of the energy; the
paddy followed by milling members functions for the
operations to produce shelling section consumes
raw rice mills. Second 20% of the energy and the
rice consumes energy, WMC with four members
generates dust and balance by material
functions for par boiled handling and others.
wastewater. The rice mill rice mills. Mr. B. Vittal
owners do not generally Reddy who was till The par boiling of paddy
appreciate that they recently the President of consumes steam for hot
are wasting energy and the Nizamabad District water generation, open
polluting the environment. Rice Millers Association steam injection while
In this scenario a Waste and the owner of soaking and for drying the
Minimisation Circle (WMC) Aishwarya Industries is the soaked paddy. The paddy
has been established in the local resource person. drier has a hot air generator
rice mill sector so as to Both the WMCs are where steam is used to heat
bring the rice mills to air for drying and hot air is
collectively devise used to dry paddy. The
methods to check the specific steam consumption
wastages and improve is 750 kg/MT of paddy. The
process operations to specific electricity
increase individual consumption is 261 to 291
productivity and kWh/MT of paddy. The hot
3
8
water after soaking is The dust accompanies to condensate wastage and
discharged as effluent. The paddy from the fields and it is drained off. This also
specific effluent generation gets airborne while delays heat transfer and
is 1000 litres/MT to opening of the bags and increases the processing
1300 while cleaning of paddy in time.
litres/MT. the mills. It is difficult to • A 40 MT par boiling
The total daily electrical quantify dust and the size plant is expected to
energy consumption of par of dust varies. generate about 50 kL of
boiled rice mill is • Waste husk due to effluent per day. Due to
1200 kWh per day. The par improper handling of husk improper water
boiling section consumes from sheller cum husker. management, the quantity
30% energy, 30% energy is of effluent generated is
consumed during polishing • Improper storage of about 30% higher. The
process and the balance by husk - a valuable effluent has a BOD of 1100
other areas. The total steam resource. The raw rice mg/l and COD of 2200 mg/l.
requirement is millers sell husk on a fixed
price basis irrespective of • One other major waste is
1400 kgs/hr. The steam ash from the boilers. The
consumption for generation the quantity of husk
disposed. It is estimated ash generated will be
of hot water is 600 kgs/hr about 1.5 to 2.5 MT per
and in the heat exchanger that about 500
MT of husk is wasted per day. This is just dumped in
is the boiler yard. The lower
800 kgs/hr. Soakin g annum. Assuming a very
low price of Rs.200/- per the boiler efficiency higher
process consumes 600 is the ash generation as
kgs/hr of steam. Either MT, Rs.1,00,000 per rice
mill is wasted. A 40 MT par more fuel is burnt to
soaking or hot water generate steam.
generation process uses boiling and paddy milling
steam at any given time. plant produces about 8.8 • The common form of
MT of husk per day. This waste for both raw rice
3. Waste should be enough to mills and par boiled rice
Generation Areas generate about 1.5 T/hr. of mill is electricity and
The following are the major steam. Due to improper production loss due to poor
wastes and the areas/causes storage of husk and equipment maintenance.
for their generation in rice inefficient boiler The field measurements of
mills: operations some of the electrical
circle members purchase
• Dust in the paddy rice husk. The value of rice
unloading area. husk procured by the
members varied from
Rs.1.0 to
2.5 lakhs per
annum.
• Inefficient boiler
operation generates CO
and pollutes the
atmosphere. Heat recovery
is also not complete. The
steam quality is poor. The
improper steam
distribution system leads
3
9
systems indicated power unloading area This will be replaced by
variations upto 20% of a Significant improvements plastic sheets and a wall
single equipment. This is have been observed by will be constructed to
only based on electrical following measures isolate the paddy cleaning
systems. Further power is enumerated below: area. The investment is
wasted due to equipment Rs.10,000/-. The dust
a) Proper design of the levels will be reduced by
overloads and improper
plant as has been done 60%.
alignment. The use of
in the case of M/s
excess power is due to use c) Constructing a separate
Tirumala Srinivasa
of poorly rewound motors, room for paddy cleaning.
Industries. The
poor electrical distribution M/s. Vishnu Lakshmi Rice
unloading area is
systems and poor mill is planning to
isolated and sufficient
maintenance. Use of implement the same.
house keeping
rewound motors increases The investment is
measures are taken up.
current drawn, heats up the Rs.60,000 for a 50- sq.m
motor and thus the b) Isolation of paddy area room. The room will
environment. milling area : In a small have a properly designed
plant like Sree Traders, exhaust fan.
• Improper equipment
the entire operation
maintenance decreases the d) Direct unloading of
from paddy cleaning to
Mean Time Between paddy from truck to
rice bagging takes place
Failures (MTBF) and due to hopper: This has been
in a single large hall.
unplanned shut downs, implemented by M/s
The paddy unloading
increases the repair time Aishwarya Industries. This
area is isolated by
and use of improper spares. reduces material handling
providing a wall. PVC
• The other wastes sheet covers can be activities. The investment
generated are wastage of provided around the t o w a rd s a t r u c k b a y
bran, broken rice and conveyors and and construction of
wastes due to poor house appropriate slope near appropriate slope is about
keeping. Though these the elevator. Presently Rs.15,000/-. Additional
wastes are lesser in investment is required
the mill is using gunny
quantity, efforts can be (Rs.10,000) to cover the
cloth for covering.
made to improve the sides of the unloading
collection of bran and keep area.
percentage of broken rice It is difficult to calculate the
at a lower threshold. pay back period as there are
4. Waste Minimisation no direct monetary gains.
Measures The hidden benefits are
resultant better mill
The WMC team members environment and ambience.
met regularly and have This improves the worker
identified several measures productivity.
to reduce waste. Some of
the measures ii) Improvements in Husk
have been Collection and Storage
implemented and others system
are under further study. a) Eliminate use of gunny
i) Dust in the Paddy packing at joints and use of
4
0
plastic sheet in the husk d) The annual husk these with
separator - negligible generation being about 3mm MS plates. The
investment. 300 MT, even if 50 MT of investment is Rs.6000/- for
b) Storage of husk on hard rice husk per annum is all the elevators in the
ground within four walls and recovered the savings can system. Thinner sheets
open rooftop. The bulk be valued at Rs.10,000/- should not be used as the
density of husk being low, @ Rs.200 per MT sheet can bend when a
large area is required for of husk. person stands on it and can
storing. However, due to lead to accidents.
e) There has been a
totally open storage the suggestion for briquetting The Pneumatic conveying
husk can fly off due to winds rice husk using a binder. system of bran should be
and is a significant This is particularly useful sealed properly. The rice
resource loss. The for Raw rice mills who can bran yield is 2.5 MT per
investment depends on the sell husk at a higher price day. The normal bran
area enclosed. The as transport costs come wastage is about 125 kgs. A
investment is estimated to down. This is to be further proper bran recovery
be Rs.1.50 lakhs for a 500 studied. system will save 37 MT of
sq.m area. bran valued at Rs.35000/-
iii) Other Dust per annum.
c) Construction of Husk Control Measures
Room: This has been iv)Steam
implemented by non-WMC The dust in other areas Generation
members who are in the can be reduced to a great and
heart of Nizamabad town to extent by proper house Distribu
avoid causing pollution in keeping. The source of tion
the township. Some of the generation of dust is from
the gaps in material The existing boilers are
members of the WMC are
handling equipment, improvised versions of
planning to implement the
shellers, feeding points of Lancashire Boilers. The
same.The investment is
the milling machine, bran efficiency of the boilers
Rs.1.00 to Rs.1.50 lakhs.
handling blower etc. The have been established as
gaps in the material low as 40%. The
transfer points can be inefficiencies are due to
covered with plastic higher flue gas
sheets. The sheets can be temperature, high level of
lifted periodically to watch excess air, improper steam
the flow of material.This is distribution etc. While
being implemented measures in this area can
gradually by all the be
members. The investment
will not exceed Rs.5000/-.
The base of elevators are
left open for attending to
jamming of elevators due
to power break down or
other mechanical
reasons .
It is
recommended to cover
4
1
endless, the following insulated with rice husk, condensate recovery has
measures have been which has good been im p le m e n te d as
implemented by some of insulating properties. pe r goo d engineering
the WMC members: The boiler has higher practices. This
efficiency by a factor of eliminates leaks, ensures
a) M/s Venkata Ramana 1.25 compared to the proper heat transfer.
Paddy Processing improvised Lancashire
Industries have Boilers. Anticipated d) The dryer uses
installed a heat savings are 1000 MT of preheated air at
exchanger to preheat rice husk per annum 70oC - 80oC for drying the
water. The water is valued at Rs.2 lakhs. parboiled paddy. The
preheated to 50oC - This unit wanted to moisture content of the
invest on a boiler for paddy is reduced from
60oC. Presently the its expansion. A 25% to 13%. This has a
system is not insulated. conventional boiler heat exchanger to heat
The temperature can be would cost Rs.8.00 air. There is a blower
increased to lakhs with recurring delivering air which
70oC-75oC. The annual maintenance costs. The passes through the heat
fuel savings after the labour required for exchanger, and the hot air
system is perfectly handling husk and the is delivered to the drier.
insulated is expected to boiler is also reduced in The heat exchanger so
be 200 MT of husk the new high efficiency far used have finned MS
valued at Rs.40,000/-. boiler. The total savings tubes. Aishwarya
The investment of will be Rs.2.5 lakhs. The Industries have introduced
Rs.30,000/- will be paid incremental cost being Copper finned tubes in
back in less than one Rs.5.00 lakhs, the pay the heat exchanger. The
year. back period is expected additional
to be just 2 years. investment
b) The installation of
modern boiler has been c) The steam distribution is
done in M/s Aishwarya system has been Rs.70,000/-. The
Industries. The boiler has scientifically carried out d r y i n g temperature can
a better air distribution in the expansion part of also be reduced to
system, better Aishwarya Industries. 65oC. The air
insulation, optimum The steam tappings for temperature was never
combustion by proper air the line, steam monitored by the member
fuel ratio. The boiler is traps and industries. This has been
seen in the backdrop in started at Aishwarya
the picture on page 7. Industries with the
The exhaust gas from provision of
the boiler is not only dust thermometers.
laden but also very hot.
e) Proper heat transfer is
The feed water tank has
achieved by the quality of
been mounted on the
steam and optimum
dust collector itself to
d r y i n g t e m p e r a t u re s .
enable pre- heating of
T h e parboiling and drying
the feed water by the
process has been reduced
flue gases. The feed
to 7 hours from 10 hrs
water tank is further
4
2
and this is expected to be the concept is not It should be noted
optimised at 5 hrs. This economically viable. that there is no
will ensure additional chemical added in the
production of 600 MT per v) Effluent entire process.
annum valued at Rs.73 Management
b) There is one rice mill
lakhs. The wastewater effluent is which is directly letting
f) The rice husk ash generated only from the out it’s effluent into the
contains about par boiled rice mills. In fields for irrigation. This
80% silica and balance these mills paddy is has been done for the
other minerals. The soaked in hot water in past few years. The
quantity of ash soaking tanks for about 6 farmers have infact been
generated can be reduced hrs. Later open steam is requesting this mill
by 25% to 30% by using a injected for 15 minutes owner for discharge of
more efficient boiler. and the paddy is boiled. the effluent to his fields.
Many published articles The water is then drained Apparently it increases
are available that exhort off as effluent. It has been agricultural yield and this
use of rice husk ash for observed that there is no requires further study.
making bricks, as filler in control of water quantity
used for soaking. c) A full fledged effluent
road laying, using it in
Following are the WM treatment plant using
canals etc, but none of
measures recommended: anaerobic/aerobic
them have been
system(s) will need an
commercialised. The a) The soaking tanks will investment of Rs.5.00
disposal of rice husk ash be marked to indicate lakhs to Rs.7.00 lakhs.
continues to be a water level and to avoid Since there are more
problem. Some of the over filling. This will than 70 par boiled rice
WMC members have reduce the w a t e r mills, a common effluent
given it to turmeric consumption treatment plant can be
farmers who use it as a and techno economically
fertiliser. About 6 to 7 MT consequently effluent viable.
of rice husk ash is sold at generation will
Rs.400 to Rs.600. This is decrease. This has been d) The other non-
possible only where tried and water conventional
turmeric is grown in consumption has been
nearby fields. Otherwise reduced to 1.1 kL/MT of
the transport cost will be paddy.This leads to a
high and saving of 4,000 lts of
water per day or 120 kL
of water per annum.
The lesser effluent
generated is expected
to be more concentrated
by about 20 to 30%
higher BOD. Since the
effluent generally has a
low BOD the treatability
of the concentrated
effluent would improve.
4
3
methods like hydroponics mills for similar • Poor Power factor at the
have to be capacities. This will AP Transco incomer and
experimented. save 30000 kWh the Tail end. All the mills
valued at Rs.1,20,000/-. have single part tariff as
vi) Electrical This emphasizes the they are under LT
System: randomness of the category. This can be
The improvements to equipment design and improved by using
electrical systems are selection by the mill capacitor banks. Most of
common to both WMCs owners. the mills have capacitors,
(raw rice and par boiled). c) The polisher motor is but they have broken
Following are some of the the largest motor in the down.
measures recommended: milling section. The • When a motor burns
a) In the par boiling section power measurements in down, the mill owner
the highest HP motor is member units varied changes it to the higher
the motor used for the air from 11 kW to 15 kW. HP motor without going
blower of the drier. The Though the power into the reasons of burn
power and air flow of the difference can be due to out. What needs to be
blower was measured. the variety of paddy appreciated is that the
The specific air delivery being milled, at least 2 investment on 10 HP
kW is being wasted in
varied from 1400 M3/kW motor will be about
some mills. The analysis Rs.25,000/- . The running
to 2200
of rubber roll sheller cost at 6000 hrs of annual
M3/kW – a variation of indicated a variation of operation ( ty pic a l of a
20%. The power 1 kW with a connected ric e m ill ) i s Rs.1,26,000/-
consumed being about motor of 10 hp. per annum. Even saving a
12 kW, the annual minimum of 1 kW the
d) The reasons for
energy wasted is investment pays back in a
higher power
14000 kWh valued at year.
consumption are:
Rs.76,000/-. The cost of
• Use of rewound motors. • These factors have been
an efficient blower is
The motors have been explained to the WMC
Rs.60,000/-. The pay
rewound many times. members and their
back period is less than
This was explained to awareness on the subject
one year. Further it is not
the WMC members. has increased. They have
required to invest in a
They have stopped gradually stopped buying
new blower. The
buying rewound motors rewound motors. This will
alignment of the blower
save 30,000 kWh valued
can be improved and the
at Rs.1,20,000/-. This
blade profile c h e c ke d
investment is not
and dynamically
accounted for as the
balanced.
replacements are being
b) The air requirement of done as and when a break
the system can be down occurs.
improved. The latest
• The generation of broken
dryer installed at
rice in the rice mills can
Aishwarya Industries be reduced by using slow-
uses one single blower of speed continuous
30 HP as against 2 elevators for both paddy
blowers of 20 HP in other and rice. The investment
4
4
is Rs,15,000/-. The power author has been vii) Equipment
saved is 6000 kWh per implemented in Maintenance
annum valued at Aishwary a Industries The maintenance of
Rs.24,000/-. The for the expansion project. mechanical equipment is
additional cost benefit The features of the system by unskilled labour.In the
due to reduced broken are: anxiety to get the machine
rice is substantial and the
• System design started when a break down
economics is attractive
i n s t e a d o f equipment occurs, machine alignments
(Rs.6.00 lakhs).
design. This facilitates are improper and improper
e) Electrical Distribution proper load spares are used. This
System: management of AP reduces the Mean Time
The electrical distribution Transco and DG power. between failures. M/s Sree
systems of all the mills are Traders had a failure in the
• Use of Miniature Circuit separator. This machine
poor. The fuses and switch Breakers (MCB). This
gear ratings have no relation has many dynamic
eliminates fuses. The components. The
to the load, cables are system has
improperly terminated, alignment of the system is
protections for very important. When the
wires are being used in overload, over voltage
fuses, no protection systems equipment failed, the WMC
and over heating. meeting decided the
etc. This warms up the
system. There are recurring • Optimum setting of maintenance to be done by
failures in electrical systems protection systems. This the equipment supplier.
and motor burn-outs are a is very important as Though the down time was
regular feature. It is difficult improper setting will more, as the skilled man-
to repair the electrical lead to system failures. power and equipment had
systems piece meal and a to come from Hyderabad,
• Proper sizing and
total revamping is desired. the machine was properly
termination of cables.
serviced. This increased the
A properly designed This system is in operation Mean Time Between Failure
electrical distribution for the last four months from
system designed by the without any failure. The 50 trucks of rice to 150
incremental cost is trucks of rice. The value of
Rs.1.00 lakh. The average additional production is
maintenance cost of the
electrical system in the
mills is about Rs. 70,000/-
per annum. This cost is
expected to reduce to Rs.
20,000/- per annum. The
pay back period is 2 years.
This reduces the Mean
Time between failure of
the electrical system,
thereby improving
equipment availability.
This increases production
and therefore pay back
period reduces.
4
5
more than Rs.12.00 lakhs. promoted by the 5.
The cost of p ro p e r concept of WMC. Constraint
maintenance is only s
Rs.20,000/-.
Apart from oft repeated
viii) Support constraints of Small and
Services Medium level Enterprises
The role of support services (SMEs) viz. single owner to
in waste minimisation look after all activities, lack
cannot be ignored. The of qualified technical
support services are use personnel etc, the following
of instruments for are the major constraints
measurements, training of identified:
manpower, availability of • Financing for WM
skilled manpower, options.The WMC members
exchange of information, while appreciating the
promotion of scientific
benefits of a better boiler,
temperament etc. The WMC
electricals etc., might invest
members proposed the
on it only when it is
following actions:
absolutely essential.
a) The WMC members Otherwise in order to
realised the importance allocate finances for day to
of measurements using day requirements, the WM
the instruments available options may get
with the facilitator. They overlooked. Financing
have proposed through Performance
establishment of an Contracting approach is
instrument b a n k i n t h e desired. While funds are
Rice Miller’s available earmarked for
Assoc iation to energy conservation by
periodically measure IREDA, technology
power, temperature, air upgradation by S I D B I a n d
flow, %CO2 at the rice S t a t e Fi n a n c i a l
mills. Corporations (SFCs), they
b) Training and maintaining may be skeptical in funding
a base for skilled rice mills, which are either
maintenance technicians, proprietary or partnership
electricians etc. at companies. The rice millers
Nizamabad. use bank finance for their
working capital needs. For
c) The Rice Millers’
capital investments they
Association being strong,
source funds from their own
this will be used to
resources.
display WMC Newsletter
of NPC and other • The case of Aishwarya
information. Industries needs a special
mention as the rice mill
d) Scientific temperament
owner has invested on
has already been
expansion using the
4
6
guidelines of WMC meetings. replacements. The WM options. Though the
Other WMC members also availability of cheaper WMC concept has
will follow suit when they finance will accelerate this increased awareness
opt for equipment process. and has made
entrepreneurs conscious
• The need for of the subject, it is hoped
Detailed Project Report that in course of time WM
and other documentation will sustain the interest of
is another constraint in the rice miller’s and that
using the funds available other day to day production
with the Financial activities and compulsions
institutions. As a single would not allow WM to be
person has to look after relegated to the
various other areas, the background. In order to
entrepreneur finds less make WM efforts stay in the
time for interaction and forefront regular interaction
preparation of between the facilitator and
documentation. the WMC members is
• They are skeptical essential after completion
about use of Consultancy of Stage VI of the
Services thinking that such milestone.
services are costly and the 6.
measures recommended Conclusio
involve investment(s). n
The benefit of use of
Consultancy services has This article detailed the
been well realised during Waste Minimisation options
the WMC meetings. It is of the rice milling industry
hoped that the members for both raw rice and
would seek expert help on parboiled sectors. There are
the subject whenever about 70 par boiling rice
required. mills in Nizamabad. Most of
them do have out dated
• Some of the rice mills boilers. If 50 mills replace
are on lease with the existing boilers with more
present occupier. efficient boilers, the energy
Therefore the occupier is saved will be Rs. 125
not in a position to invest lakhs. This reduces
on capital equipment. pollution to a great extent.
• The other major Similarly about 100 kL of
constraint is sustaining water per day can be
saved by better water
management practices.
Fig. RICE MILLING PROCESS

P ad d y Par Boiling Milling Section


Reception Section
Cleaning &
Storage

Paddy Bin
700 Qtls.
Elevator 1HP
Open Steam O 5HP/5HP
pen Blower
Pre Cleaner
Ste
am
+2HP Paddy
cum Destoner Cleaner
Unmatured
Hot Water Hot Water
Grains/Dust
Tank Tank
12000 ltrs. 12000 ltrs.
1000 A El
Q eva
Fr
uint 5 tor H
o
als H 1 us
m
Padd P H k
P
y 2 P to
add
Bin Pum Ya
y
ps Bin Shell rd
Paddy 1 er
El stan cum
eva dby Huske
tor r
2HP
10HP
Cond S S S S S S
Bl ensat oak oak oak oak oak oak
e ing ing ing ing ing ing El Use
ow Pre Paddy F Ta Ta Ta Ta Ta Ta El
er eva eva Sam
Dust rom nk nk nk nk nk nk tor e
3 Heat I I I I I I tor
H 1 Elev
Exch 4 4 4 4 4 4 H ator
P ange T T T T T T P
r
Bran
Cleaner (not Roo
X X X X X m
collect Wate Ri Separ Paddy
X
ed) r Bl c ator
Screen Open Steam
Tank ow e 2HP
D P Conve er (not
us ump yor used)
t 5HP 5HP
(80%
collecte
d)

D El
Elevator Hu Bo us eva Bl Elevator
3HP sk ile Comp t tor 5 H ow 1HP
r resso Ho 10 0 ea er
32 r t HP o t 3
x 5H Air H
C Exch P
8 P Dr ange
A ye r
s r
h
24
T

Elevator Ge 25HP
C
rm ycl
s one
Po
ult
ry
Conde
1 B nsate
To
0 1
0 1
0 Cone Polishing
T T T Par
Boile
d
Paddy Godown
20HP - 2Nos.
PARBOILED RICE

QUALITY AND STANDARDS : As per PFA specifications

PRODUCTION CAPACITY : 45000 MT Parboiled rice/annum

1.0 PRODUCT AND ITS APPLICATIONS

There are many advantages of parboiling the paddy. It reduces grain breakage during milling,
greatly improves the vitamins content and other nutrients in the polished rice grain, increases the
oil content in the bran, changes the cooking and eating quality of the rice and reduces the insect
infestation during storage.

In the traditional process, paddy is soaked for three days whereafter water is drained out. The
soaked paddy is steamed and dried. This traditional process has some serious drawbacks such
as foul odour due to microbial fermentation during the prolonged soaking and also loss of dry
matter.

2.0 MARKET POTENTIAL

About 60% of total production of paddy is parboiled in India. Parboiling is thus an important industry.
The people living in coastal belt generally prefer the parboiled rice. The parboiled rice can be used
for making dosa and idli. The product prepared from parboiled rice are better than those of raw
rice. Hence, people of other regions as also buy parboiled rice for preparation of such fermented
products.
3.0 BASIS AND PRESUMPTION

8
a) The unit proposes to work 300 days per annum on Double shift basis.
b) The unit can achieve its full capacity utilization during the 3 rdyear of operation.
c) The wages for skilled workers is taken as per prevailing rates in this type of industry.
d) Interest rate for total capital investment is calculated @ 12% per annum.
e) The entrepreneur is expected to raise 20-25% of the capital as margin money.
f) The unit proposes to construct own building while the cost of construction is based on local
enquiry.
g) Costs of machinery and equipment are based on average prices from machinery
manufacturers.

4.0 IMPLEMENTATION SCHEDULE

Project implementation will take a period of 8 months. Break-up of the activities and relative time
for each activity is shown below:

v Scheme preparation and approval : 01 month


v SSI provisional registration : 1-2 months
v Sanction of financial supports etc. : 2-5 months
v Installation of machinery and power connection : 6-8 months
v Trial run and production : 01 month
5.0 TECHNICAL ASPECTS

5.1 Process of Manufacture

The unit will produce parboiled paddy by hot soak method. The important process involves overnight
soaking in warm water in a cement tank. The water is drained off. The soaked paddy is steamed.
It is dried mechanically or in a drying yard. The process gives good quality paddy and increased
yield of head rice by 0.5 - 1.0%. Process know now is available from CFTRI, Mysore.

5.2 Quality Control and Standards : As per PFA specifications

6.0 POLLUTION CONTROL

There is no major pollution problem associated with this industry except for disposal of waste
which should be managed appropriately. The entrepreneurs are advised to take “No Objection
Certificate” from the State Pollution Control Board.
7.0 ENERGY CONSERVATION

The fuel for the steam generation in the boiler is coal or LDO depending upon the type of boiler.
Proper care should be taken while utilising the fuel for the steam production. There should be no
leakage of steam in the pipe lines and adequate insulation should be provided.
8.0 PRODUCTION CAPACITY

Quantity : 45000 tonnes parboiled rice/annum


Value : Rs. 3393 lakh
Installed capacity : 232 tonne paddy/day
Working days : 300/annum
Optimum capacity utilization : 70%
Manpower : 150

Utilities
Motive Power : 5080 kW
Water : 29000 kL/day
Paddy husk : 58000 kg//day
Coal/LD oil : 14500 kg/day
9.0 FINANCIAL ASPECTS

9.1 Fixed Capital

9.1.1 Land & Building Amount (Rs. lakh)

Land 12000 sq.mtr : 95.00


Built up Area 6000 sq. mtr. : 650.00
——
Total cost of Land and Building : 745.00
9.1.2 Machinery and Equipment

Description Amount (Rs. lakh)


Parboiling plant (10 tonne/hr) with overhead
paddy holding bin, hot water tank, water pump,
steam, boiler, rice milling plant (10 tonne/hr),
weighing scale and trolleys : 1540.00

Erection & electrification @10% cost of


machinery & equipment : 154.00

Office furniture & fixtures : 22.50


Total : --------
1716.50
9.1.3 Pre-operative Expenses

Consultancy fee, project report, deposits with : 45.00


electricity department etc.

9.1.4 Total Fixed Capital :2506.50

(9.1.1+9.1.2+9.1.3)

9.2 Recurring expenses per annum

9.2.1 Personnel

Designation No. Salary Amount


Per month (Rs.lakh)

Factory Manager 8 12000 9.60


Office Assistant 12 6000 8.64
Supervisor 18 5000 10.80
Skilled workers 45 3000 16.20
Unskilled workers 60 2000 14.40

5.96
Perquisites @10%
-------
Total : 65.60

9.2.2 Raw Material including packaging materials

Particulars Qty.(MT) Rate Amount


(Rs. lakh)

Paddy 473000 960/kg 4540.80


Jute bags 116000 no. 8 each 20 232.20
Misc. 8.00
--------
Total: 4781.00
9.2.3 Utilities Amount (Rs. lakh)

Power 1524,000 kW 609.60


Water 870000 kL 174.00
Coal 4350 MT 1218.00
-------
Total: 2001.60

9.2.4 Other Contingent Expenses Amount (Rs. lakh)

Repairs and maintenance@10% 20.01


Others 3.70
Insurance 48.00
-------
Total: 69.71

9.2.5 Total Recurring Expenditure Amount (Rs. lakh)

(9.2.1+9.2.2+9.2.3+9.2.4) 6917.91

9.3 Working Capital 691.79

10% of Recurring Expenditure

9.4 Total Capital Investment Amount (Rs. lakh)

Fixed capital (Refer 9.1.4) 2506.50


Working capital (Refer 9.3) 691.79
---------
Total: 3198.29
10.0 FINANCIAL ANALYSIS

10.1 Cost of Production (per annum) Amount (Rs. lakh)

Recurring expenses (Refer 9.2.5) 6917.91


Depreciation on building @5% 32.50
Depreciation on machinery @10% 154.00
Depreciation on furniture @20% 4.50
Interest on Capital Investment @12% 150.00
----------
Total: 7258.91

10.2 Sale Proceeds (Turnover) per year

Item Qty. Rate Amount (Rs.lakh)


(MT) per MT

Parboiled rice 47328 1900 8550.00


Packed in jute bags
10.3 Net Profit per year

= Sales - Cost of production

= 8550.00 – 7258.91

= Rs. 1291.09

10.4 Net Profit Ratio

= Net profit X 100


Sales

= 1291.09 X 100
8550.00

= 15.10%

10.5 Rate of Return on Investment

= Net profit X 100


Capital Investment

= 1291.09 X 100
3198.29
= 40.36%

10.6 Annual Fixed Cost Amount (Rs. Lakh)

All depreciation 191.00


Interest 150.00
40% of salary, wages, utility, contingency 854.76
Insurance 48.00
——
Total: 1243.76

10.7 Break even Point

= Annual Fixed Cost X 100

Annual Fixed Cost + Profit

= 1243.76x100
1243.76+1291.09

= 49.06%
11.0ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS

Canara Engineering Enterprises


B-182, II stage
Peenya Industrial Estate
Banglore – 560 058

G.G.Dandekar Machine Works (I) Ltd.


Dandekarwadi
Bhiwandi – 421302

Jaya & Co.


Trichy Road
P.B. No. 1347
Coimbatore – 641 018

Sidwin Machineries Ltd.


No. 10, III Stage
Industrial Suburb
Mysore – 570 008
RICE MILL CLUSTER OF NALGONDA & ADJOINING AREA.
1. Introduction :
Nalgonda & adjoining areas are the adjacent district having
population of 22.75 Lakhs. With commissioning of Nagarjuna Sagar
Project, a green revolution started after 1960. As a result of which
Nalgonda & adjoining areas became rice bowl of Andhra Pradesh. The
main economic activities of the region is agriculture and main crops
raised are paddy. Following table would give an idea regarding the
land in Nalgonda & adjoining areas.
Land Utilisation Pattern (2000-2001)

Particulars of Area Krishna Nalgonda


(in (in
Hectres) Hectres)
A) 152574 80490
• Forest Area 55000 54000
• Misc, tree, permanent pasture,
land put to non agricultural use,
barren and uncultivable land.
• Cultivable Waste 20489 15392
• Current Fallow (04-05) 671 22

• Other Fallow (04-05) 27392 6119

• Net Area SOW 193349 348725


152574 80490
• % of Forest Area of district to state
666293 583200
B) Agricultural Land (04-05)
• Total Cultivated Land 221412 354866

55
• High Land 124273 179437

• Medium Land 60759 89395

• Low Land 36380 76034

• Average area covered in Khariff


109704 2112093
(Paddy)
• Approx. Paddy production in
19.24Qntl/H 22.28Qntl/H
Khariff.
ec ec
• Average area covered in Ravi
14058 43343
(Source : DDA, Krishna)
2. Age of the Cluster
The Nalgonda & adjoining areas has a paddy growing area
traditionally and hence looking to the raw material availability and
the ready market, rice being the staple food for the state’s
population, rice milling became a natural choice for traders keen on
investing. Thus the milling activity started in the area almost 50
years ago. Since then the number of units have grown to 150 units in
the area as estimated presently. The growth of the units in the cluster
can also be attributed to the influence of the neighbouring rice mills
with similar paddy cultivating areas. In fact, due to the ongoing
purchase support from FCI, the number of milling units increased
from 96 to 150 during the period 2001-2005. As such the cluster is a
naturally evolved cluster having proximity of raw material, i.e. paddy
which in turn enjoys regular water supply from the Nagarjuna Sagar
Project located in the cluster’s proximity.
3. Nature of the Cluster
As mentioned in the preceding paragraph, the rice mills are mainly
spread around Nalgonda with a few units also being located in nearby
district of Krishna. In all there are about 150 rice mills in the region
up to 2004-05. These mills are of various capacities ranging from 2
tons/hr to 10 tons/hr, the older units usually being that of low
capacities while the comparatively new units of higher capacities

56
reflective of the growing investment in the sector. These units buy
75% of the total requirement of paddy from the market yard at the
minimum support price and 25% is purchased directly from the
cultivators of the region. The average turnover of these units ranges
from Rs. 3-4 crores in case of lower capacities to about Rs. 6-8 Crores
in case of the higher capacity units. The cluster is organised on
horizontal lines and the overall turnover of the cluster is about
Rs.1000 Crores and it comprises of small to medium size units.

4. Industry Scenario: -
a. World: In the international market Thailand, USA & UK have
gone ahead in rice production. These countries are basically
producing short grain non-basmati varieties. Besides Europe
and UK also procure brown Basmati Semi processed rice from
India and finally process further as per their requirements. The
Milling Industries of these countries mainly employ automatic
advanced technology of processing, professionally human
resource and well managed organizations having concepts of
TQM, appropriate and modern technology and continuous R&D
activities. In non Basmati rice India faces top competition with
Thailand, Philipines and Vietnam whereas in Basmati rice India
stands topmost in the world as far as value structure is
concerned. World produces 397.2 million tons of paddy (2001).
It is estimated that about 800 million tons ( FAQ) of rice will be
required by 2025 A.D.
b. India : - Rice milling units prevails mainly in the state like U.P.,
Uttaranchal, Punjab, Haryana, Andhra Pradesh, W.B., Orissa.,
Tamilnadu, Bihar, Assam, Karnataka and Kerala at National
level. The states produce rice of both Basmati and non-Basmati
variety. The Basmati varieties are mainly produced in Punjab,
Haryana, U. P. and Uttaranchal. As far as exports of fine quality
Basmati rice from the country is concerned 75% of it is

57
exported from state of Haryana only and is followed by Punjab.
Hence, the few bench marking cluster in the country is
considered as Haryana and Punjab, which are rich in
production, exports, quality and technology.
Few fully automatic plants from world top manufacturers
i.e. stacke Japan sorting machine imported from USA, UK &
Japan have also installed by few units of Karnal (Haryana),
Kalady (Keral), Rudrapur (Uttaranchal). Some of the units of
Nalgonda cluster have installed colour sortex and silky plant.
The paraboiled produced by these units may compete in
national and international market.

5.Cluster Details:-
There are about 150 rice mills in Nalgonda & adjoining areas, out
of which one is coming under large sector. The processing/milling
capacity of these units ranges from 2MT / Hour to 8MT/Hour. The
units are located in various blocks and villages of Krishna and
Nalgonda districts.

(a) Critical Mass

The cluster broadly consists of 150 mills spread mainly around


Nalgonda & adjoining town. The average turnover of these units
ranges from Rs. 3-4 crores in case of lower capacities to about Rs. 6-8
Crores in case of the higher capacity units. Thus the overall turnover
of the cluster is about Rs.1000 Crores.

The growth on the basis of number, turnover and employment in


Nalgonda cluster can be seen from following data provided by the
association of the rice milling cluster:
Grow th of Rice Mills Cluster in in Nalgonda & adjoing tow ns

160
140
120
NO OF MILLS

100
80
60
40
20
0
2000-01 2001-02 58 2002-03 2003-04 2004-05
YEAR
The following data gathered from the cluster from various sources
reveals that employment growth has been steadily increasing except
in the year 2001-02.

EMPLOYMENT GROWTH IN CLUSTER

12000
NO OF WORKERS

10000
8000
6000
4000
2000
0
2000-01 2001-02 2002-03 2003-04 2004-05
YEAR

GROWTH OF RICE MILL CLUSTER ON THE BASIS OF TURNOVER

1000
900
800
700
600
RS IN CRORES 500
400
300
200
100
0
2000-01 2001-02 2002-03 2003-04 2004-05
YEAR

59
 Contribution of Cluster to export : 10 rice millers export to the
tune of Rs. 130 crores approximately through Agents.
 Importance of the products in terms of its linkages with other
products / sectors: The product has primary linkage with
packaging industry, machine suppliers of engineering cluster of
Cuttack-Bhubaneswar & Rourkela.
 Special features of the cluster in terms of seasonal / mainstay
activities / dependence: In this cluster paddy is a seasonal product
mainly grown in two crops i.e. Karif & Rabi.

60
Within the cluster the fashion in which the rice mills are located in
different villages / towns of Nalgonda and Krishna districts is shown

Spread of Rice Mills in Nalgonda - Krishna Cluster

45
40
35
30
25
No. of Mills
20
15
10
5
0 K H Al B V
C C N D M S M N J G
hi h e od uz er h e ir yl u a u ij
u
ty o r ad ur u o v y av zi g di a
r
al u e N n er al ar vi g v y
y
a t d a gi k a a d a a a
a
u u g ri o g m u y d w
p
p c ar n u a a a
e
p h d d p d
t
al a a a et a
rl a
a

as below:

As such this becomes quite evident form the above given spread that
the cluster has a strong influence on the local economy of the region,
affecting the lives of people from paddy farmers to casual labour
employed in the mills, the technical support of repairs etc. provided
by the local smaller units and the other economic spin-offs for the
service sector of the region.

61
A comphrensive status of the units of the cluster indicating
investment, capacity & employment is given below.
Sl Year No of Produ Valu Install Employmen Export Invest
. units ction e in ed t Nos. s ment
N work in Lac Cror capaci (Direct in
o. ing MT es ty in & Machin
Lac indirec ery
MT on t)
single
shift
basis
Regu contr
lar act
1. 2001- 96 3.79 354.4 6.91 1920 4050 -- 76crore
02 0 s
2. 2002- 110 4.32 411.3 7.92 2200 3300 -- 88crore
03 0 s
3. 2003- 135 5.30 504.6 9.72 2700 4050 120Cror 108
04 1 s crores
4. 2004- 150 5.80 600.0 10.60 3000 4000 180cror 242cror
05 0 es es

Growth trend of the rice milling industry in the last four years has
been on positive side. With 96 nos. of units in the 2001-02 in the
cluster, their number increase in 110 in the year 2002-03 registering
growth of 19.5%. This figure further increase to 135 in the year 2003-
04 with another rise of 22.73% with respect to the figure of the year
2002-03. Accordingly the rice production in terms of quantity and
value has also raised substantially.

6. Structure of Cluster :-
I. Rice Milling Industry :-as stated above 150 units are
functioning in the district of Krishna and Nalgonda. Out of
these 10 nos. of units have installed colour sortex machine.

62
They have started exporting standard parboiled rice to
Bangladesh and Indonesia through an agent.
44% of the units have their installed capacity of rice
milling to the tune of 2MT/Hour and 36% of the units are
with the capacity of 3MT/Hour. The state of Andhra Pradesh
including units mainly in Krishna and Nalgonda, Guntur and
West Godavari etc accounts for 75% of the total mills of
Andhra Pradesh.
The units in SSI sector have installed low productive
non-automotive machines and mainly work for a period of 5
months with effect from October to February linked with the
Khariff Paddy season. Due to irrigation facility in these two
districts the units get paddy for milling in Ravi season i.e for
another three months. The rest of the season is called off
season and units are mostly un-operational.
II. Industry Associations : The rice milling industry in the
district is established in various blocks of districts but main
industry associations are functioning is Nalgonda Rice Mill
Association.
The above rice milling association mainly look after
the interest of the rice mills of their respective area covering
the entire industries, members and rice dealers. This
association is operating mainly in the office of the factory of
the President of the Association.
No separate association level executives has been
engaged / employed by the district / regional level
association. Neither any separate staff for the association
activities has been appointed nor any magazine / periodicals
or regular data / information flow among existing members.
Besides this these associations also do not undertake
developmental activities for their members except for
policies issue. Their activities are mainly directed towards

63
changes in the policy matter which are taken up with
respective Government or respective Agencies from time to
time.

III. Controlling and Direct Promotional Institutions:


a) Ministry of Agriculture, Govt. of India.
b) Civil Supply Dept., Govt. of Andhra Pradesh.
c) APEDA – Agriculture & Processed Food Products Export
Development Authority, Ministry of Commerce and
Industry, Govt. of India.
d) Food Corporation of India & State Procuring agencies.
e) Ministry of Food Processing, Govt. of India.
f) Standard Certification Agencies.

a) Ministry of Agriculture, Govt. of India : In order to protect


interest of farmers to get them minimum support price of paddy and
avoid their exploitation by intermediateries, Govt. of India under its
policy every year fixes the minimum support price of various crops
including paddy. The state Government is directed to watch and
monitor the price stabilization and incase the price found lowering
than MSP, various states designated agencies take up the bulk
purchase of paddy as per the specification and thereby maintain the
minimum support price.

b) Civil Supply Department., Govt. of Andhra Pradesh :-The


state civil supply department on the policy directions of Govt. of India
to invoke and maintain minimum support price of paddy for farmers.

c) APEDA: - It is an agricultural and processed food products export


development authority of ministry of commerce and industry and
engaged in augmenting, promoting and monitoring the exports of
agro products including rice. It also provides financial assistance to
the merchant and industrial exporters and has formulated the various

64
schemes approved by Govt. of India. APEDA’s scheduled products
category include cereals, Basmati and non-Basmati rice. The other
major services of APEDA includes the following:
i. Formation of Agricultural Export processing zones. AEZ
entail export promotion with partnership of farmers,
processors, exporters, central and state govt. agencies and
flow of information and data.
ii. Intervention in fiscal issues like rebate in excise, custom,
sales tax, mandi tax and state and central Govt. level for the
units falling in the zone.
iii. Financial assistance and grant in Aids and reduction in
interest on credits by banks.
iv. Legal, administrative tariff and non-tariff related issues.

APEDA has so far established 32 AEZs with approval of state


Govt. and agencies including power Basmati rice in Punjab.

The APEDA’s assistance also includes carrying out exports


inspection passing on trade enquiry received from importer and
financial cum grant in assistance in infrastructure development, ISI-
9000, TQM Certification assistance in participation in international
trade fairs and training etc.

e) Ministry of Food Processing formulates and implements the policies


for food processing industries with in overall national priorities and
objective as well facilitates the environment for healthy growth of
food processing industry. The major activities related to rice milling
industries are as stated below:
i. Technologies up-gradation/modernization of food
processing industries
ii. Setting up of food processing and training center.

65
iii. Creation of infrastructure facility for running
degree/diploma courses and training programmes for food
processing.
iv. Training programmes.
v. For quality assurance and safety concept codex standards,
R&D including TQM, Bar coding, ISO 9000, ISO14000 and
good hygienic practices (GHP), Q.C. Laboratory.
vi. For schemes for backward and forward integration and
other promotional activities.
 Under backward linkages in procuring units ensure that high
quality seeds, fertilizers, pesticides and technical know how
is provided to the farmers in time.
 Under forward linkage to ensure regular market by
establishing linkages with market and assistance in market,
surveys test marketing and land building etc.
 For general advertisement to built awareness among the
customer.
 For promotional activities like organizing seminars /
workshops / symposium / studies / surveys / feasibility
reports.
 For participation in National / International exhibitions / fairs.
 For strengthening Industry Association by compilation
analysis, publication of statistics and dissemination
information.
 For food fortification i.e. for dietary diversification and food
fortification using simple technologists by supplementing
micro nutrients.

Scheme for infrastructure development:


 To develop food path for infrastructure and common
facilities for use by small and medium enterprises, which
enhance value addition.

66
 To develop packaging center to promote new technologists
of packaging.
 For value added centers to enhance self-life, higher
realization integrating value change and information flow
and trace ability.

f) Standard Certification Agencies :- various national and


international standard certification agencies play active role in
product and process standardization, packaging and sampling
standardization. The other part is quality management system / TQM,
ISO 9000, 14000 certification etc. the following agencies assists in
this regard.
 Bureau of Indian standards.
 About 38 international certification agencies providing
certification in ISO-9001-2000 & ISI-14000.

7. Evolution of Cluster:
The first rice mill namely M / s Hanuman Rice Mill, Sasan,
Krishna came up with an investment of Rs. 75,000 /- during 1953 in
the cluster.
Of course the modern rice mill having parboiling dryer and
sortex have been introduced 3 years back. The no. of such mills will
be around 10. The cluster region is covering under western part of
Andhra Pradesh. It carries an extreme climate which is favourable for
production of Paddy. Canal from Nagarjuna Sagar Project irrigate
major area of the district. Rice mills in this cluster area are 50 years
old hence traditionally skilled man power are available to operate the
mills. It is well connected by road to Raipur (Chhattisgarh) and
Rourkela for better business avenue.

Where the modern machinery are little bit costly and


production cost is slightly high still the rice produced out of the
modern machinery have got more demand in open market.

67
8. Production process - description of value chain :-
Here in this rice milling cluster procurement of paddy by FCI
and state procuring agencies are so to say nil. Last year only civil
supply corporation and MARKFED have purchased some quantity of
paddy from market yards. In the usual process the farmers are
supplying URS (under relaxation specification) quality of paddy at
market yard. The millers used to buy URS quality paddy at specific
rates fixed by Collector i.e Rs.403.50 per 75 Kg bag. The sequence of
activities carried out in this cluster from raw materials to final product
is stated below :

The Collector, Civil Supply Officer, Tahasildar and RMC


authorities have a committee to decide the quantity of paddy to be
purchased by a rice mill from a separate market yard. The farmers
having received identity card from local tahasildar can only be
eligible to bring paddy to the market yard. The farmer has to pay 1%
market fee on URS price while selling paddy to the millers. The
millers will take away the paddy to the respective mills after payment
to the farmers by their own trucks or trucks supplied by truck union.

The milling process are as follows :

Introduction of Mechanical dryer is a value addition over


manual sun drying process. Herein in mechanical drying system
steam is being used and it is a continuous process takes 6 to 7 hours
for drying paddy. Advantage is that the mill can run during rainy.
Inclusion of parboling with mechanical dryer has been considered as
modern rice mill in Kerala. Rest other process are common in this
area.

68
1. Raw Rice/Parboiled Rice processing flow chart

Paddy 

Cleaning  Soaking Steaming Sun drying

Mechanical 
drying

Shelling Unit

Cleaning Dehusking Separator

Paddy Broken rice

Polishing unit

Separator Bran yard

Rice grader Broken rice, 
smaller size rice 
& impurities
Quality rice

Weighment 
and packing

69
2. Process flow chart for exporting

Rice produced by common 
rice mill

Silky unit

De stoning unit

Colour Sorting Machine

Grading

Weighment and Packing 

70
9. ANALYSIS OF VALUE CHAIN

Sl. Process Flow Process Accumulated Remarks


No. cost/Value value
(in Rs./-qtl.
Of rice)
1 Paddy (URS) 960 (URS: Under
Relaxation
System)
2 Transport 20 980
3 Cleaning, loading, soaking,40 1020
drying, dehusking, polishing,
grading, etc.
4 Yeild A- raw rice
(a) Raw rice @ 67% i.e. 67 kg. B – Parboiled
cost of 100 kg raw rice rice
(b)Parboiled rice @ 68% i.e 68 kg. 1530.00(a)
parboiled rice 100 kg
1499.40 (b)
5 Cost of bags (2 nos.) 40 • 1570.00 (a)
• 1539.40 (b)
6 Transport 40 • 1610.00 (a)
• 1579.40 (b)
7 Sell price • 1950.00 (a)
• 1900.00 (b)
8. Net profit • 340.00 (a)
• 320.66 (b)
9. Sell of rice brand–7%@ 800 56
10 Gross profit 396.00 (a)
376.66(b)

71
Analysis of Value Chain( as per FAQ standard)
Process Flow Process Accumulat Remarks
Cost / ed value
Value (in
Rs/qntl)
1.Paddy (Gd-A) 980.00 980
2.Mktg. Fee 1%
3.Cleaning loading,
4.Misc. 1.5%
5.Total 2.5% 24.50 1004.50
6.Drying 18.00 1022.50
7.Dehusking & polishing 40.00 1062.50
8.Grading 4.00 1066.50
9.Yield
a. Raw rice @ 67% i.e.
67kg. 1599.75(a) (a) raw rice
- Cost of 100 kg. raw (b)boiled
rice 1567.75(b) rice
b. Parboiled rice @68% Charges to
i.e 68kg be paid by
- Cost of 100 kg. parboiled 25.00 1624.75 (a) CSC/agencie
rice 1592.75(b) s
10. Custody & maint. 40.00 1664.75 (a)
Charges 1632.75 (b)
40.00 1704.75 (a)
11. Cost of gunny bags 2 1672.75 (b)
nos. 1950.00 (a)
1900.00 (b)
12. Transportation 245.25(a)
227.25(b)
13. Sale price 800.00 56.00
100.00 19.00
14.Net profit 320.25 (a)
302.25 (b)
15.Sale of rice bran(7%)
16.Sale of husk (19%)
17.Overall gross profit
N.B.: (i) This gross profit is excluding over head and administrative
expenses.
(ii) For an average production of 100 kg rice 150 kg of paddy
required.
(iii) The above practice would have been implemented but the
practice is being considered by the administrative authority.

72
10. Analysis of Business operations:

a) Raw material procurement and its quality cost etc.


Paddy is the basic raw materials for rice mills. Ministry of
agriculture Govt. of India fixes up the minimum support price of
different crops including paddy by way of policy to protect the
farmers from exploitations. It is observed in our diagnostic study that
no farmer is able to supply standard quality paddy. As such they are
not getting minimum support price. This is one of the major problem.

b) Production process related problems


• In the process of parboiling water affluent is generated and is
harmful. The rice millers are getting problem to store it.
• Rice husk is the cheapest fuel for generating steam but the
waste product fly-ash is another headache for disposal for the
millers.

c) Design related problems


The rice mills working in this cluster are of very old technology.
Electrical consumption is very high. Here in this technology electricity
consumption is very high compared to modern rice mills.

d) Technology related problems


Technology is changing day by day. The technology adopted by
the rice millers here in this cluster is occupying more space,
consuming more energy polluting air and water and it is time
consuming. As a whole the cost of production is high for the
technology.

e) Credit Issues

73
Finance is not a problem nowadays excepts some mills all other
mills have availed term loans and working capita from different
commercial banks.

f) Marketing Issues
At present marketing of rice is not at all a problem because FCI
is purchasing 75% of the total production against levy quota. Open
market has the demand for consuming rest 25% of the production. If
the levy system will be out then marketing will be the major problem.

11. Presence of support institutions :-

APEDA, minister of civil supply deptt., Agricultural Deptt., Govt.


of Andhra Pradesh, Central Rice Research Institution, Cuttack, Indian
Council for Agriculture Research, Agricultural Universities, National
Productivity Council, CIDBI, National Commercial Bank, NABARD, DIC,
SISI, Certification Agencies, Testing Laboratories, Engineering College,
Engineering School, ITI, RMC.

i. Ministry of Agriculture : Ministry of Agriculture declares


minimum support price of different food grain including
paddy and rice,

ii. Civil Supply Department : playing major role in this


cluster. fixes the maximum target of purchasing paddy for
the rice millers through specific market yard.

iii. Agriculture Deptt. of Andhra Pradesh :- The Deputy


Director of Agriculture provides seeds to the farmers. They
also have a agricultural lab. at Krishna, which in turn informs
the farmers about seeds suitable for their local soils.

iv. CRRI, Cuttack : It is an inter-national level rice research


center institute produces new variety of paddy suitable to
local climatic condition.

74
v. OUAT : Andhra Pradesh University of Agricultural Technology
has a branch at Chiplima, Krishna.

vi. NABARD : It is an agricultural developmental bank


providing infrastructural assistances as well as conducts
training and awareness programmes for benefit of the
farmers.

vii. SISI : Training and SSI programme, like EDP, MDP etc.,
export marketing and provide technical appraisal report on
demand.

viii. DIC : It is a promotional agency and the path finder for


setting of SSI units. Besides above project profiles, schemes
and survey reports are being prepared by DIC.

ix. Bank : It provides financial assistance to entrepreneur anon


demand.

x. ITI / Engineering school / Engineering College :


Generates technical professionals. It may be proposed to
introduce rice mill operators short time course at ITI level.

12. Business Development Service Providers : (BDS)

The following are the basic BDS providors :


a) Farmers
b) Packing materials suppliers.
c) Transporters
d) Labour Contractors
e) Chartered Accountants
f) Export Consultants

The R&D and other institutes like ICAR, CRRI, OUAT, standard
certificate agencies, APEDA, CDP, SISI etc are in existence but rarely
approached by the industry except a few organized units who have

75
been benefited. There is a need to make the industry aware of
various services available and provided by these institutions.

13. Infrastructure analysis of Cluster

Most of the units have been established on both the sides of


NH6. A few rice mills are established in the interior. But roadways are
available. Railway connections are there for both the districts.
Electricity facilities are available. Transporters are available for
providing vehicle on hire basis.
14. Credit analysis of the cluster:-

Most of the mills have been financed by State Banks and other
nationalized banks. They are happy with the credit operations by the
priming stake holders.

15. Social and Environmental Conditions of the Cluster-

The first and foremost stakeholders of the cluster are the paddy
cultivators linked to the mills. These operate through the purchase
agents/ traders and also through the Regulated Marketing Committee
(RMC) Centres located across the entire region. It is estimated that
about 2221797 hectares of land is cultivated during the Kharif crop
thus supporting a large number of farmers. The Rabi crop is mainly
for preparing the seeds for the commercial cultivation of paddy
during Kharif season. Several small time agents and traders
coordinate the paddy’s movement to the mills from the farms.
Though there prevails a Minimum Support Price (MSP) for the rice
grown in the area, the small lots of paddy cultivated by individual
farmers lets them operate through these traders who act as
middlemen between the mills and the farmers in most cases.

The mill owners are usually the Vysyas who are natives from several
generations into Andhra Pradesh in pursuit of business opportunities
and thus have almost ‘traditional’ experience of operating a rice mill.
The younger generation of these business families, after getting good
education has started looking after the family business and have
started experimenting with different ways of growing the business.
This has become a good feature for the cluster. These units y have
good relationships with the local banks and approximately Rs.4-5
lakhs is the annual income of the owners.

76
However, the workers in the rice mills are not very highly qualified
and most of the workers get a sort of on-the-job training in the rice
mills, the seniority and the continued loyalty ensuring the promotion
of the skilled worker to a supervisor level and then into the day-to-
day shop floor management of the mills is taken care of by these
persons. As such skilled manpower for the mills is an issue in the
cluster. The daily wages of the workers are estimated to be in the
range of Rs.40-50/- per day.

Further the working conditions in a rice mill are not hygienic due to
particulate emission inside the work place and improper planning at
the shop floor level. Since rice husk contains high level of silica, the
workers are susceptible to silicosis and related ailments such as
asthma etc. The workers operating at shop-floor level are generally
not covered under medical insurance schemes and thus health
hazards to the workers may be an important area of concern. None of
the rice mills of the area are having HACCP certification and this
limits the capacity of the mills to go for direct exports of rice. No unit
in the entire cluster is ISO certified though both of these certifications
are not mandatory but desirable for the mills.

77
16 . PR ES ENT CL UST ER
SUPPORT INSTITUTIONS
APEDA Min. of Food Civil Supplies Deptt. CRRI SIDBI & Banks SISI & DIC Certification
Processing agencies
Engg. School & ITI
Colleges

B
F CENTRAL POOL/
AGENCY
CORE A
O
F FIRMS C
K
W
W
A EXPORT MARKET A
R 10 MT RICE MILL-1
R
D
D
L 8MT + 10 MT +
SORTEX -10 L
I
DOMESTIC MARKET I
N RMC/ MARKET
YARDS
N
K 6,4,3 & 2 MT RICE MILLS- K
A 1219 A
G
G
E
E
 Transporters
PACKING
 Spare parts Suppliers
MATERIALS
FARMERS
 Export Consultants SUPPLIERS
 Chartered accountant
 Labor Contractor

BDS PROVIDERS 78 RAW MATERIAL SUPPLIERS


Maintenance & Job Work Providers
17. Analysis :
The analysis of the cluster in the following parameter.
1. Market
2. Technology
3. Input availability
4. Innovation capability
5. Human Resource / skill
6. Business Environment.

This analysis identifies the strong and weak areas as well as opportunities and
threats envisaged in the cluster.

Sl. Paramet Strength Weakness Opportunity Threat


No er
.
1. Markets • Market All rice mills Tremendous Strong
support depend upon the national market competiti
available levy supply taken is there. on from
under up by FCI. • Institutional Asian
levy/custome support is Countries.
milling rice available
policy. • All the units
• Most suitable having sortex
climatic machine may
environment be clubbed off
for common
brand and
export
2 Technolog • Low cost • High • potential for • Traditio
y fabricated production/ productivity. nal
machines automatic • Cost technol
• Technological plant very reduction and ogy,
infrastructure costly & quality standar
available. mostly enhancement d and
imported by use of non-
beyond reach appropriate profess
of SSI sector. technology/Q ional
• Entrepreneur MS. MS
not aware of leading
sources of low to high
cost imported cost
automatic may
plants and retard
appropriate the
processing industr
techniques. y both
• Locally at
fabricated domest

79
plant are ic /
unstandardise interna
d & low tional
productive. market
.

3 Inputs Local resource Controlled • Large *


availabilit minimum support domestic impositio
y price(MSP) of /international n of taxes
paddy at market and levies
compulsion of available in
levy rice supply. • Potential for comparis
non-exporting on to
unit to export neighbour
• Available ing states
institutional may
support may further
be exploited. lead to
• Formation of closure /
shift of
consortium
industries
and making
to
common
neighbour
brand for easy
ing
export.
states..
4 Skills Traditional • no skill Increased Skill base
operators upgradation technical and needs
available training managerial upgradati
awareness and on to
trainings may adopt
lead to latest
productivity, technolog
quality and y and
efficiency managem
ent
systems.
5 Business Ability of export Heavy taxes / Tremendous Impositio
environm segment to grow levies and growth potential n of
ent and meet controlled trade with institutional taxes,
international has lead to support. levies in
challenges. closure / shift of comparis
events. on to
neighbour
ing states
may
taper
down the
industry.

18. Vision for the Cluster

80
THE VISION OF KRISHNA-NALGONDA RICE MILLING CLUSTER IS TO ESTABLISH
AND SUSTAIN AS MOST EFFICIENT. MODERNISED AND EXCELLECE MODEL IN QUALITY
RICE PRODUCTION AND PARTICULARLY WITH EYE ON GROWTH IN EXPORT MARKET TO
SETUP A CONSORTIUM BY CONTRIBUTION FROM THE MEMBER UNITS. THE
CONSORTIUM WILL WORK ON NO PROFIT AND NO LOSS BASIS UNDER THE
ADMINISTRATIVE CONTROL OF RICE MILLING ASSOCIATION. THE CONSORTIUM WILL
ESTABLISH AND LOOK AFTER THE CFCs LIKE TESTING LABORATORY, OIL REFINERY,
TRAINING CENTRE, GUIDANCE CELL AND SPARE PARTS STORE.

19. Key Problem Areas & strategic interventions proposed :-


Detailed diagnostic study of the cluster has already been conducted by the
Directorate staff in technical collaboration with UNIDO. The detailed diagnostic study
is attached with the proposal.

19.1 Low output volume & quality of paddy

The following table shows the state wise yield of rice across all the states of the
country:

State Area in Million Yield % Coverage


hectare (kg/hectare) under
irrigation
(1995-96)
AP 3.5 2431 94.8
Assam 2.49 1359 33.8
Bihar 4.98 1362 40.2
Gujarat 0.67 1550 55.6
Haryana 0.91 2797 99.4
J&K 0.28 1992 91.2
Karnataka 1.38 2419 66.8
Kerala 0.40 1636 49.9
MP 5.40 831 23.7
Maharashtra 1.48 1621 26.3
Orissa 4.50 1380 35.5
Punjab 2.28 3465 99.1
Tamil Nadu 2.36 2987 92.0
81
Uttar Pradesh 5.66 2148 62.3
West Bengal 5.90 2243 27.2
Others 1.23 -- --
All-India 43.42 1895 50.1
Source: Website of Ministry of Agriculture, Govt. of India
Thus it would be evident from the table that while Andhra Pradesh stands 4 th in terms
of area under cultivation for paddy, in terms of yield it stands only 9th and this is
because in terms of irrigation it is 10th, lagging behind a number of states. This
cluster lies in the catchment area of Nagarjuna Sagar Project; it has a much higher
portion of cultivable land under irrigation than the state average. However, the
quality of the paddy cultivated in the area is of a coarse and unscented variety and
thus yields very low margins to the paddy growers as well as the rice millers. As such
the cluster would grow if the quality and yield from the fields could be increased
through technical interventions.

Intervention proposed:

It is proposed that with the effective use of the expertise of CRRI (Central Rice
Research Institute) Cuttack and other such technical institutions, interventions would
be done to improve the yield and quality of the paddy of the region through active
involvement of the farmers of the region. The activities could be:
• Testing of high yield-high quality paddy types and then adoption of the same in the
region
• Support for better farming practices to improve yield
• Awareness building activities for the farmers on such issues and improve their
linkage with NABARD and similar institutions for support to their activities
• Converge with various institutions engaged in agricultural development activities
for joint activities

19.2 Low technology level

Though some of the mills of the area have modern facilities such as SORTEX and
SILKY, the poor quality paddy and the levy system of purchase have deterred most of
the mill owners to go for technology upgradation in their mills. Some of the mill
owners who have the modern facilities have reported better price appreciation even
with the existing paddy variety. As such with improved paddy quality, the output from
the mills would increase and the enhancement of productivity would yield better
returns. The low technology levels in boilers, the lack of facilities of re-use of the
boiler heat and some technical gaps in the milling technology itself have led to low
output, high percentage of broken rice and other related issues.

Intervention proposed:

It is proposed to enable the mill owners adopt better technologies in their mills, riding
over the availability of better quality paddy from the farmers and thus the following
are proposed for improving the technology level in the mills:

82
• Exposure visit to other rice milling clusters/ technical institutions etc. to cull out
best practices of rice milling
• Technical audit by suitable consultants to help the mills understand their
technical upgradation needs
• Interactive seminars/ workshops with institutions such as CRRI, APEDA and
other sectoral technology institutions etc.
• Visit and interaction of various machinery suppliers and other technical input
providers to the cluster
19.3 Inefficient boiler operation and other productivity issues

The energy survey in the cluster has been carried out by NPC consultants. It is found
that low thermal efficiency of the boiler leads to an effective use of only about 40-
50% of the total energy available. During the study it has been observed that the
boiler operators do not have the required certificate from Directorate of Boiler, Govt.
of Andhra Pradesh. The owners very often engage unskilled people for operation of
boiler and technical items as a result of which boiler explosions take place quite
often. Thus skilled work force is necessary for further growth in the industry. The
female workers are fully unskilled. Improvement in these practices and optimisation
of the boiler design may lead to substantial improvement in the energy conservation
area and thereby the profitability of the cluster.

Further the overall efficiency of the units in terms of low broken percentage of rice
and utilization of the by-products from the milling process are also important
considerations for interventions.

Intervention proposed:

It is proposed that the following activities may be carried out to improve the overall
productivity of the mills of the cluster:
• Energy audit and energy conservation steps
• Exposure to suitable milling technologies to reduce the broken percentage & other
productivity enhancement issues
• Training of work force on boiler operations and certifications of some senior boiler
operators from requisite certifying institutions
• Assessment of possibility of utilising the by-products of the rice milling process for
further augmentation of incomes of the mills

19.4 Limited Market Outreach

The cluster produces substantial amount of rice but it has been simply been
complacent with its 75% production being taken up at levy prices fixed by FCI.
Varying Industry standards for the different qualities of rice is also posing issues; FCI
standard is 2-3% broken rice, in open market broken rice is acceptable up to 1-2%
83
only. As per the FCI guidelines, though there is an annual quota fixation for the
district for lifting rice depending upon the mill size, this levy amount is not mandatory
and if the mills wish they can refuse and sell in the open market. However, most of
these traditional mill owners do no tend to leave this assured market even if it turns
out to be low paying due to less stringent quality requirements and other such issues.
Thus the low capacity utilization, inefficient techniques and machines for production
all get adjusted against the assured markets and the internal dynamics of the trade.
In this fashion, the cluster has not been able to penetrate into other consumer
markets and has a limited growth aspect as of now.

The limitation of marketing is also due to the fact that the rice millers do not go
for any further value addition, or diversification of their end products. Though there is
a good potential for making puffed rice and other such value-added products, the
tendency to restrain only to rice milling has been due to the poor quality paddy and
inefficient milling itself. As such, if the back-end activities would improve, then the
overall product range of the cluster could be diversified and thus provide a much
larger market base to these units.

Intervention proposed:

The following interventions are proposed to overcome the issues of limited market
outreach:
• Awareness building on HACCP certifications, ISO certifications and their market
utility
• Facilitate certifications of some units for ISO 9000, HACCP etc.
• Buyer Seller Meets with good quality rice produced by the cluster’s units
• Hiring of marketing consultants for tie-ups with end use industries across the
country
• Facilitate the upgradation in value addition activities in some units for puffed rice
and other such ready to use products

19.5 Lack of active associations:

The existing association at Nalgonda had been dormant for quite some time and only
due to the pilot level activities that were initiated during the study phase; some
energisation of the association has taken place. They have got into the mode of
commonly planning some activities and thus they need to be further strengthened to
take up the developmental activities in the cluster. As such these vehicles of growth
need to be strengthened for the long term growth of the cluster.

Intervention proposed:

The activities proposed to strengthen the association and the formation of the special
purpose vehicle (which has already started taking shape in the cluster) are as follows:
84
• Placing one secretarial staff (NDA) with the association to help in daily activities
• Coordination of meetings of the SPV formation and association
• Formation of consortia and other types of groups in the cluster to improve its
social capital
• Interaction of the associations with other rice miller associations for information
exchange etc.
• Regular handholding of the association and the groups created in the cluster
• Entrepreneurship and motivation training programmes for the rice millers

19.6 Common Testing Facility:

Regarding testing quality of rice, there is no unit of govt in this cluster. But Central
Rice Research Institute is located at Cuttack, where quality can be tested. Testing of
motor, instruments along with their calibration is an area where collaboration is a
possibility. A common facility centre is required in this sector.

Intervention proposed:
It is proposed that the SPV of the rice millers, which is coming up in the cluster due to
the ongoing efforts under the GoO–UNIDO Cluster Development Initiatives, would be
further strengthened and supported to take up the work of setting up of a common
testing and other facilities under a PPP mode in the cluster.

20. Expected Major Outputs


The major outputs that can be expected from the proposed interventions are as
follows:

20.1 Firm level


20.1.1 Number of beneficiaries
This need based intervention programme would initially target the top 50 firms of the
cluster and then build upon the cadre of interested and willing partner mill owners to
about 100 units, who would be targeted directly during the programme for the
various interventions envisaged.
20.1.2 Range of Outputs:

• About 50 mills would be able to cut down production costs by 10%, leading to
better profit margins
• About 20 mills would be able to go for exports
• About 50 mills would improve their capacity utilisation by about 10%
• About 10 mills would go for various certifications such as HACCP, ISO 9000 etc.
• Training to unit owners in the field of 5S, TQM and benchmarking, ISO 9000 etc.
• Training to workforce on ISO 9000, cost reduction technologies, packaging etc.
• About 50 firms for paid business development services.

20.2 Cluster Level

85
• Setting up of common testing facilities for paddy, rice husk, water, common
motor repairing etc. under PPP mode
• Overall increase of turnover of the cluster by 20%
• Increase in the share in the domestic market by 30% and in export markets
by 15%
• Increased employment in the cluster by 10%
• Improvement in the status of the farmers of the area by cultivation of better
quality & better yield rice and therefore better price appreciation
• Improved environment conditions by use of the by-products from the rice
mills
• Strengthening local associations of the cluster and their effective
contribution to the activities of the cluster who would have a long term
action plan and would have contributed by about 50% to the initiatives
under the proposed project

21. BROAD ACTION PLAN :-

1st Year
1 Networking with CRRI for improving yields of existing varieties
. of paddy & introducing new varieties including training to
farmers, linkages of farmers with credit providing institutions
like MFIs, NABARD etc
2 Study tours to other cluster
.
3 Association / SHG / NGO/ Network capacity building for workers
. of Rice Mills in conservation of Energy
4 Exposure Visit for farmers
.
5 Brochure preparation
.
6 web-site launching
.
7 Service of external consultants for export / other markets
.
8 Miscellaneous developmental costs (translation, publications)
.

2nd Year
1 Organisation of training programs on HACCP
.
2 Study tour for farmers to learn different practices
.
3 Association / SHG / NGO/ Network capacity building for workers
. of Rice Mills in conservation of Energy
4 Exposure Visit for Rice millers
.
5 Brochure preparation
.
6 web-site launching
.
86
7 Service of external consultants for export / other markets
.
8 Miscellaneous developmental costs (translation, publications)
.

3rd Year
1 Organisation of training programs on ISO Certification
.
2 Study tours for farmers demonstrations of technology /
. equipment
3 Conducting energy audit of Rice Mills
.
4 Exposure Visit for Rice millers
.
5 Brochure preparation
.
6 web-site launching
.
7 Service of external consultants for export / other markets
.
8 Miscellaneous developmental costs (translation, publications)
.

87
Abstract:
According to the present invention, there is provided a process for par-boiling rice,
comprising the steps of: (a) treating the rice with water at a temperature up to its
boiling point to increase its water content to 17 to 28%; (b) steaming the soaked rice
at a temperature from 100° to 125° C. to increase its water content to 19 to 30%; (c)
heating the steamed rice, in a sealed vessel, under pressure and using dry heat, to a
minimum temperature of approximately t° C., wherein t=195-2.5 M and M is the
moisture content of the steamed rice in %, for from 1 to 5 minutes; (d) reducing the
pressure on the rice over a period of 1 to 10 minutes to atmospheric pressure,
thereby allowing water to evaporate from the heated rice to reduce its temperature
to approximately 100° C. and its water content to 17 to 24%; and (e) drying the
partially dried rice to microbiological stability. The product of the present invention
has better consumer appeal than conventional par-boiled rice.

1. A process for par-boiling rice, comprising the steps of:

(a) treating the rice with water at a temperature up to its boiling point to increase its
water content to 17 to 28%;

(b) steaming the soaked rice at a temperature from 100 to 125° to increase its water
content to 19 to 30%;

(c) heating the steamed rice, in a sealed vessel, under pressure and using dry heat,
to a minimum temperature of approximately t° C., wherein t=195-2.5 M and M is the
moisture content of the steamed rice in%, for from 1 to 5 minutes;

(d) reducing he pressure on the rice over a period of 1 to 10 minutes to atmospheric


pressure, thereby allowing water to evaporate from the heated rice to reduce its
temperature to approximately 100° C. and its water content to 17 to 24%; and

(e) drying the rice produced in step (d) to microbiological stability.

2. The process of claim 1, wherein in step (c) the rice is held at t° C. for a further 1 to
5 minutes.

88
3. The process of claim 1, wherein after step (d) and before step (e), the rice is
tempered by being held at a water content of 17 to 24% for up to one hour.

4. The process of claim 1, wherein in step (a) the water is at a temperature of 50 to


95° C. and the treatment is carried out to increase the water content of the rice to
between 20 and 24%.

5. The process of claim 1, wherein during the steaming step (b), the water content of
the rice is increased to 22 to 30%.

6. The process of claim 1, wherein steps (a) and (b) are combined.

7. The process of claim 1, wherein the dry heating step (c) is carried out by applying
microwave energy to the steamed rice in a sealed vessel under pressure.

8. The process of claim 1, wherein the dry heating step (c) is carried out by dielectric
heating of the steamed rice in a sealed vessel under pressure.

9. Apparatus for producing par-boiled rice comprising

(a) means for treating the rice with water at a temperature up to its boiling point to
increase its water content to 17 to 28%.

(b) means for steaming the soaked rice at a temperature from 100 to 125° C. to
increase its water content to 19 to 30%;

(c) means for heating the steamed rice, in a sealed vessel, under pressure and using
dry heat, to a minimum temperature of approximately t° C., wherein t=195-2.5 M and
M is the moisture content of the steamed rice in %, for from 1 to 5 minutes;

(d) means for reducing the pressure on the rice over a period of 1 to 10 minutes to
atmospheric pressure, thereby allowing water to evaporate from the heated rice to
reduce its temperature to approximately 100° C. and its water content to 17 to 24%;
and

(e) means for drying the rice produced by means (d) to microbiological stability.

Description:

The present invention relates to a process for par-boiling rice and in particular, but
not exclusively, to such a process using microwaves to heat the rice.

The process of par-boiling rice has been known for at least a hundred years and was
originally carried out in order to facilitate the removal of the husk from paddy rice.
(Paddy rice, or rough rice, is the term used in the art to describe rice as it is
harvested which has only been treated coarsely to separate the majority of non-rice
contaminants from the rice. Paddy rice comprises the rice kernel, its surrounding bran
layer and an outer husk). It was found that this process also resulted in the dehusked

89
rice becoming less attractive to rodent pests, more nutritious and less sticky after
cooking.

It has since become common practice in rice growing areas to par-boil rice on an
industrial scale to improve the properties of the rice. Generally speaking the par-
boiling processes are carried out on paddy rice. In fact, as far as the Applicants are
aware, all commercial par-boiling processes use paddy rice. However, some
publications show small scale laboratory tests using very special, complicated and
expensive methods to par-boil cargo rice (cargo rice is paddy rice from which the
husk has been removed). Such methods have not been used commercially.

A typical industrial par-boiling process involves steeping the pad rice in water at
about 70° C. for about 2.5 hours to raise the water content of the rice from 12% to
about 35%. As long as the water temperature is kept below the gelatinisation
temperature of the starch in the rice (about 70° C.) the rice will eventually reach an
equilibrium value for its water content of about 35%, the time taken to reach this
value being dependent on the water temperature. If the water content is raised above
this figure it is likely that the rice will split open due to the effects of the absorption of
the water. However, if the water content after steeping is significantly lower than this,
the final product of the process will contain a large number of "white bellies" (which
are grains in which the starch is not fully gelatinised).

In order to facilitate the steeping step, some industrial processes apply a vacuum to
the rice after the addition of the water to remove air from the rice and then apply
pressure, generally of about 2 bar, to the water to increase the rate of water
penetration into the kernel.

Once the water content of the paddy rice has been raised to the desired level, the
starch in the rice kernel is gelatinised, generally by steaming the steeped paddy rice
at 100 to 120° C. A typical steaming step is carried out at 110° C. for 2 to 15 minutes.
The product of the steaming step is paddy rice having a high water content and
having the starch in its kernel gelatinised.

It is therefore necessary to dry the steamed rice. This needs to be done very carefully
in order to avoid breaking the rice kernels. Originally it was carried out very slowly by
leaving the rice out in the sun at ambient temperature for a few days. However, as
this involves a long time delay, industrial processes generally use a drying schedule
as follows. The steamed paddy rice is dried by use of hot air to a water content of
about 22%. In this stage most of the water is removed from the outside of the grain
and very little from the inside. This stage takes about 35 minutes.

The partially dried rice is then tempered by leaving it at ambient temperature for
about four hours. During this time water equilibrates throughout the grain. Thereafter
the tempered paddy rice is dried to a moisture content of 16 to 18% by use of hot air.
This takes about half an hour. The rice is then finally dried by blowing air at room
temperature over it for up to six hours to bring its water content to about 14%.

After the rice has been fully dried, it is dehusked in conventional manner to produce
par-boiled brown or cargo rice (which comprises the rice kernel and the surrounding
bran layer). Thereafter, the rice may be polished to remove the bran layer to produce
par-boiled white rice.

90
Many variations in process conditions and apparatus are known, but they basically
follow the same sequence of steeping, steaming and drying as described above.

Such an industrial process cannot be carried out on cargo rice since, at high moisture
contents, such as 35%, cargo rice is soft and is severely damaged by bulk handling
systems. During the steeping stage, the rice kernels crack and during the steaming
stage the cracked kernels would fuse together to form a large agglomerated starchy
mass. In the normal process, the effects of this cracking are overcome by the
presence of the bran layer, which holds the rice grain together, and the husks, which
protect the bran layer from damage. During steaming, the cracks are joined together
by the gelatinisation of the starch. However, it is a disadvantage to have to process
paddy rice as it is necessary to transport the husk to the par-boiling plant and to
steep, steam and dry the husk, all of which adds to the cost of the process.

The above process also has a number of other disadvantages. The overall processing
time is very long, generally being about fourteen hours even discounting the time
required to move the rice from one stage to the next. The process requires a large
heat input, to generate hot water for steeping, steam for gelatinization and hot air for
drying. Generally, all this heat can be supplied by burning the husks, but this
nonetheless requires equipment to carry out the burning and to heat the water,
steam and air. The process also has a large water requirement for steeping and
steaming. All these disadvantages are related to the necessity for introducing a large
amount of water to the paddy rice to enable complete gelatinisation to take place. As
it is necessary to introduce a large amount of water, it is also necessary to remove a
large amount of water during the drying stages.

Nonetheless, the par-boiling process produces a product which has many advantages
over normal white rice. During par-boiling, nutritionally valuable substances, such as
vitamins and mineral salts, which are mainly found in the bran layer, migrate into the
kernel, thus improving the, nutritional value of the product after milling away the bran
layer. The product is dried to an optimum water content irrespective of the water
content of the original paddy rice and is sterilized during the steaming and drying
processes. The product is more robust than untreated rice and therefore greater
yields during dehusking and polishing can be obtained. The product has a good
appearance, will keep better in the raw or cooked state, will cook better to produce a
less sticky product than would a normal white rice, and generally leaves less solids
behind in the cooking water. The only slight disadvantage of the product is that it
takes slightly longer to cook than normal white rice.

An excellent review of the state of the art of rice par-boiling is given in FAO
Agricultural Development Paper No.97 entitled "Rice Parboiling" by F. Gariboldi, FAO
Consultant, published by the Food and Agriculture Organisation of the United Nations,
Rome, in 1974 (revised and republished in 1986). It can be seen from this Paper that
the basic process of par-boiling rice has remained essentially unchanged for at least
fifty years.

There have also been a large number of patents issued on the subject of par-boiling
rice, among which may be mentioned U.S. Pat. No. 1 239 555 (Baumgartner, issued
on 11 Sept. 1917), U.S. Pat. No. 2 287 737 (Huzenlaub), U.S. Pat. No. 2 546 456
(Landon) and U.S. Pat. No. 2 515 409 (Jones). These also show the antiquity of the
par-boiling process.

91
It is an object of the present invention to provide a process which overcomes at least
in part the disadvantages set out above, but which produces a product which is as
good as or better that prior art par-boiled rice.

According to the present invention, there is provided a process for par-boiling rice,
comprising the steps of:

(a) treating the rice with water at a temperature up to its boiling point to increase its
water content to 17 to 28%;

(b) steaming the soaked rice at a temperature from 100 to 125° C. to increase its
water content to 19 to 30%;

(c) heating the steamed rice, in a sealed vessel, under pressure and using dry heat,
to a minimum temperature of approximately t° C., wherein t =195-2.5 M and M is the
moisture content of the steamed rice in %, for from 1 to 5 minutes;

(d) reducing the pressure on the rice over a period of 1 to 10 minutes to atmospheric
pressure, thereby allowing water to evaporate from the heated rice to reduce its
temperature to approximately 100° C. and its water content to 7 to 24%; and

(e) drying the partially dried rice to microbiological stability.

Optionally, in step (c) the rice is held at t° C. for a further 1 to 5 minutes.

It is to be noted that throughout this specification, all percentages are given by


weight based on the wet weight of the rice.

Advantageously, after the pressure reduction step (d), the partially dried rice is
tempered by being held at a water content of 17 to 24% for up to one hour,
preferably from 15 to 30 minutes.

Preferably, in the treating step (a), the water is at a temperature of 50 to 95° C., and
the treatment is carried out to increase the water content of the rice to between 20
and 24%.

The treatment step (a) may be carried out by soaking the rice in water in a bath or
mixer, or by spraying water onto the rice in a mixer. In the above cases it is desirable
to transfer the rice as quickly as possible to the steaming step so as substantially to
avoid the formation of cracks in the grains.

If the rice is overwetted during this stage the grains are likely to be too soft and stick
together during handling. Moreover the wetted rice will be difficult to transport as it
will clump together. If the rice is not sufficiently wetted, the rice may not contain
enough water for full gelatinization to occur during the heating step, thus leading to
the appearance of "white bellies" in the final product.

Preferably, during the steaming step (b), the water content of the rice is increased to
22 to 30%, advantageously from 24 to 28%, by use of steam at 100 to 115° C., i.e. at
atmospheric or slightly superatmospheric pressure. This will generally take between
20 and minutes.

92
The steaming may be carried out using a belt steamer, a screw steamer, a screw
steamer operated under mixing conditions, or a vertical pipe steamer.

Preferably, the steam is cleaned, either by filtration or by being generated in a closed


circuit heat exchanger, before it is applied to the wetted rice. Advantageously the
mixing conditions under which the steamer is operated are as gentle as possible to
reduce the number of broken grains formed during the process.

During the steaming process not only is the water content of the rice increased, but
also the distribution of the water in the rice is made substantially even and the
temperature of the rice material is brought to the steam temperature, thus reducing
the amount of heating which needs to be achieved in the next stage.

If the wetted rice is steamed at too low a temperature or for too short a time, the rice
may be too dry to be properly processed in the heating stage and the product may
contain too large a proportion of white bellies. If the rice is steamed at too high a
temperature or for too long, there will be produced a product having a dark colour.

In some instances, it is possible to combine the wetting step (a) with the steaming
step (b). For instance, the rice in a steamer may have water sprayed onto it at the
same time that the steam is being applied.

The water spray will raise the water content to 17 to 20% and the steam will add the
remaining amount of water and heat the rice.

The dry heating step (c) is carried out to increase the temperature of the rice and the
water without substantially adding water to or removing water from the rice.

Preferably, the drying heating step is carried out by applying microwave radiation or
dielectric heating to the steamed rice in a sealed vessel under pressure to raise the
temperature in the vessel to the desired temperature.

The minimum overpressure needed in the vessel is a function of the temperature, for
instance the over-pressure necessary at 135° C. is about 2.2 bar and at 140° C. is
about 2.6 bar. Further pressure in the vessel can be generated, for instance, by the
addition of compressed air. It is preferred that the pressure in the vessel is somewhat
above the minimum necessary over pressure. Typically at 135° C. the pressure will be
in the range 2.2 to 4 bar and at 140° C. the pressure will be in the range 2.6 to 6 bar.
Higher pressures can be used, but these do not provide any advantage and add to
the cost of the process.

For the preferred moisture content of 24% after steaming, the temperature should be
raised to approximately 135° C. This generally should take about 2.5 minutes. During
this time steam at pressure is generated by vapourisation of a small proportion of the
water in the rice. Also during this time, the starch in the rice grain is gelatinised and
any cracks in the grain are sealed.

The temperature of heat treatment is related to the moisture content in order to


ensure that the starch in the rice grain is fully gelatinised. A low moisture content
steamed rice will need a high gelatinization temperature. However, with such high
temperatures there is a possibility that the rice will become highly coloured due to
caramelisation of the starch.

93
Also the rice grain on heat treatment may bend into a banana shape due to the
differential effects of the heat on the caryopsis and germ in the kernel. With a higher
water content, lower temperatures can be used, but such high water content rice is
more difficult to handle. Therefore the water content is preferably between 24 and
28% after steaming.

The temperature of the heat treatment may generally vary by about ± 5° C. from the
value given by the equation set out above. However, if the temperature is too much
lower than the calculated temperature the rice may be incompletely gelatinized, thus
producing an unacceptable number of white bellies, and the product on cooking may
become unacceptably sticky. Preferably, therefore, the temperature used in step (c) is
within about ±2° C. of the value given by the equation set out above.

If the temperature is too much higher than the calculated temperature the rice may
become coloured and adverse taste components may be introduced. If the
temperature is not raised quickly enough the rice may become coloured since it will
be held at an elevated temperature too long. If the temperature rise is too fast there
may be uneven heating, resulting in the production of white bellies (under processed)
and coloured (over processed) grains.

Preferably, the rice is mixed well during the heat treatment so as to obviate uneven
treatment of the rice.

Preferably, the rice is held at temperature for about 2 minutes, although this time
may be raised in order to compensate for any variations in the temperature of the
treatment.

The use of microwaves as the source of dry heat is preferred as it enables the rice to
be heated rapidly to temperature in a controlled manner. The microwaves may be
applied by any method known to person skilled in the art. Such methods are
described, for instance, in "Industrial Microwave Heating" by Metaxas, A.C. and
Meredith, R.J., published in 1983 (ISBN 0- 906048-89-3).

Dielectric heating can be used as an alternative to the preferred microwave heating


as it has many of the advantages of quick heating and convenience of microwave
heating.

However, the dry heating may also be achieved by use of hot air, hot sand or steam
heating, for instance in a fluidised bed, or by infrared heating. These methods are
also well known to those skilled in the art but are less preferred as they are less
convenient and generally do not produce as good a product as is possible using
microwave or dielectric heating.

At the end of the heating step (c), the vessel contains wet rice at the desired
temperature at superatmospheric pressure. Therefore, as the pressure on the rice is
reduced in step (d), water will evaporate from the rice grains and the temperature of
the grains will fall from the desired temperature to about 100° C. This will cause a
reduction in the water content of the rice to 17 to 24%.

The pressure may be reduced continuously or stepwise, and preferably the pressure
reduction is carried out over a period of 1 to 5 minutes.

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If the pressure reduction is carried out too quickly, for instance by explosive
depressurization, the rice may crack or explode. However if the reduction is carried
out too slowly, the rice may become coloured as it will have been kept at a high
temperature for too long.

This step of the process is particularly advantageous as it results in a significant


drying of the rice without the need for any further heat input.

In the optional tempering step, the rice is advantageously kept at a moisture content
of at least 18%, for instance by storing it in a closed insulated system. The tempering
step, if used, decreases the rate of drying and may therefore prevent cracking of the
grains taking place during further drying.

In the final drying step (e), the partially dried and optionally tempered rice is dried to
reduce its water content to approximately 13%. At about this water level the rice is
microbiologically stable and can be stored in unsealed packets for significant lengths
of time. The exact water content for microbiological stability will vary with the type of
rice but can be readily determined by a person skilled in the art.

The final drying step (e) can be carried out by use of normal ventilation or using a
forced air draft at room temperature. This will generally take about 6 to 8 hours, but
is advantageous in that it requires minimal heat input and in that the slow drying will
assist in preventing the formation of cracks in the grain.

After the final drying step, the rice may be processed in conventional manner, for
instance by dehusking and/or polishing.

The process of the present invention is very advantageous when compared to prior
art par-boiling processes. The heat and water requirements of the process are
significantly less than those of the prior-art processes. In particular, the drying is
carried out without the need for any extensive additional heat input. The additional
energy input to the present process is considerably less than for any known par-
boiling process. Also, the capital costs of the plant used for the process are relatively
low as there is less need for blowers, water heaters, steam generators or soaking
tanks. Moreover, it has been found that the process of the present invention can be
carried out not only on paddy rice but also on cargo (dehusked) rice. It is believed
that this is possible because of the careful control exercised over the wetting,
steaming and drying conditions, which substantially eliminates the tendency of the
grains to crack and be damaged by handling. There is therefore no need for the husk
to maintain their structural integrity.

Being able to process cargo rice has additional advantages. It is possible to separate
mature rice grains of good quality from immature grains (thins) and broken grains
before processing. Moreover, damaged grains which discolor during normal par-
boiling processes to form `peck` (blackened grains) are weaker than normal. A large
proportion of these break during de-husking and thus can be removed with the
broken grains before processing. Thus in the present process it is possible, but not
necessary, to feed the process with only the good quality, de-husked grains, whereas
in the prior art processes it is necessary to treat good and bad and broken and
unbroken grains as well as the husks. Clearly, for the present process the weight of
rice which needs to be processed to obtain a desired weight of product is significantly

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less than that needed for the conventional processes. Of course, if desired, lower
quality rice such as paddy rice or untreated cargo rice can be processed.

The product produced by the present process is superior to prior-art par-boiled rice. It
differs slightly in cooking time, but appears to be more resistant to overcooking, is
less sticky when cooked, and has higher hardness and less stickiness in organoleptic
properties than prior art par-boiled rice. Rice made by this process also shows a slight
degree of elongation during cooking and gives a longer, more slender grain than prior
art par-boiled rice.

The present invention also includes apparatus for carrying out the process of the
present invention and par-boiled rice produced thereby.

According to a second aspect of the present invention, there is provided par-boiled


rice which, when cooked for about 18 minutes in boiling water, is less sticky, thinner
and longer grained and less coloured than conventional par-boiled rice cooked under
the same conditions.

Preferably, the par-boiled rice of the present invention is obtainable by the process of
the present invention.

The present Applicants have carried out sensory analysis of cooked, par-boiled rices
using trained panels of tasters. This sensory analysis enables a quantitative indication
of the appearance and texture (mouthfeel) of the rice to be given. In the
"appearance" tests, the panel looked for the stickiness, milling, grain thickness, grain
length, colour, dryness and mushiness in the appearance of the cooked rice. In the
"texture" tests, the panel tests for granularity, sponginess, rubberiness, hardness of
bite, softness of bit, dryness, wateriness, stickiness and smoothness.

In the "appearance" tests, the par-boiled rice of the present invention is noticeably
less sticky, thinner grained, longer grained and less coloured than conventional par-
boiled rice. In the "texture" tests, the rice of the present invention is significantly less
sticky and smoother grained. These qualities make it more acceptable to the
consumer than conventional par-boiled rice.

The present invention also provides apparatus for producing bar-boiled rice
comprising:

(a) means for treating the rice with water at a temperature up to its boiling point to
increase its water content to 17 to 28%;

(b) means for steaming the soaked rice at a temperature from 100 to 125° C. to
increase its water content to 19 to 30%;

(c) means for heating the steamed rice, in a sealed vessel, under pressure and using
dry heat, to a minimum temperature of approximately t° C., wherein t =195-2.5 M
and M is the moisture content of the steamed rice in %, for from 1 to 5 minutes;

(d) means for reducing the pressure on the rice over a period of 1 to 10 minutes to
atmospheric pressure, thereby allowing water to evaporate from the heated rice to
reduce its temperature to approximately 100° C. and its water content to 17 to 24%;
and

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(e) means for drying the partially dried rice to microbiological stability.

One embodiment of the present invention is now described, by way of example only,
with reference to the accompanying drawings in which:

FIG. 1 shows schematically a plant for par-boiling rice; and

FIGS. 2A and 2B show a sensory analysis of par-boiled rice according to the invention.

Referring to the drawing, there is shown a silo 1 in which is stored a quantity of cargo
rice (i.e. the rice kernel and its surrounding bran layer, the husk having been
removed). The cargo rice had been passed through a sorter (not shown) wherein thins
and broken grains were separated from the good quality whole grains. The sorter may
be, for instance, a Labofix grain sorter supplied by Emceka and Gompper, of Cologne,
West Germany.

The whole grains, which have a water content of 12%, are fed from the silo 1 through
a feeder 3 into a screw driven hot steeper 5 containing water at 71° C. The residence
time of the rice in the water is 4.5 minutes. During transit through the steeper 5, the
water content of the rice is raised to 21.9%.

The rice is then transported onto a dewatering belt 7 to remove surface water from
the rice. The residence time of the rice on the belt 7 is between 1 and 3 minutes. The
rice is fed from the belt 7 directly into a steamer 9 wherein steam at 110° C. and
slightly above atmospheric pressure (about 0.46 bar overpressure) is applied to the
rice. The residence time of the rice in the steamer is 30 minutes. During its transit
through the steamer 9, the water content of the rice is raised to about 28% and its
temperature is raised to 110° C.

The steamed rice is then fed into a continuous microwave heating unit 11 operating
at 132 to 135° C. and an overpressure of about 4 bar. The residence time of the rice
in the microwave unit 11 is 4 minutes. During its residence time in the microwave
unit 11, the starch in the rice grains is fully gelatinised.

The rice is then passed to a pressure reduction system 12 wherein the pressure on
the rice is released continuously over a period of from 3 to 6 minutes. During this
time, the temperature of the rice drops to about 100° C., its water content is reduced
to about 22% and the pressure falls to atmospheric.

The rice emerging from the pressure reduction system is passed to a pre-dryer 15
wherein it remains in a tempering zone for a residence time of 1 h. It then passes
through a pre-drying zone with a residence time of 0.5 h. The pre-drying zone has air
at ambient temperature passing therethrough. The rice emerges from the pre-dryer
15 at a temperature of 27° C. and a moisture content of 20.4%.

The pre-dried rice is then transported to and passed through a conventional grain
dryer 17 comprising a series of alternating tempering and drying zones followed by a
final cooling zone. Air is passed through the drying zones. The residence time of the
rice in the dryer is 8 h and the rice emerges with a moisture content of 13%, at which
content it is microbiologically stable.

97
The dried rice is then milled in a milling machine 19 (a Laboratory Stonemill supplied
by Streckel and Schrader, Hamburg, West Germany), to remove its bran layer. The
milled rice is then passed to a polisher 21. The polished rice is passed through a
second sorter 23, of the type described above, which separates broken grains, and a
third sorter 25, a type GB 104C. sorter supplied by ESM Inc., of Houston, U.S.A., which
separates coloured grains from whole fully par-boiled grains. The sorted rice
represents the final product.

The par-boiled rice produced by the process described above was cooked in boiling
water for 18 minutes and compared with the prior-art par-boiled rice, cooked in the
same way, by sensory analysis in taste-panel testing. On taste-panel testing the
present product when cooked was found to be somewhat less sticky and somewhat
harder than cooked prior-art par-boiled rice but otherwise had similar organoleptic
properties. This can be seen by reference to FIG. 2 which shows in Panel A an
"appearance" analysis and in Panel B a "texture" analysis. Attention is particularly
drawn to the stickiness and colour value in Panel A and the sticky/mouth and smooth
grain values in Panel B. The bar-boiled rice of the present invention was also generally
regarded by consumer home use panels as being superior to the prior art product.

It can thus be seen that the present invention provides an advantageous process
which produces a product superior to known products in a more efficient manner.

It will be appreciated that the present invention has been described above by way of
illustration only and that various modifications of detail may be made without
departing from the scope of the invention as defined in the appended claims.

Process Technology

Paddy Rice or Brown Rice


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■ Sound matured long grain paddy
■ Variety pure as possible
Cleaning / Grading ■ Bulk density higher than 550 g/l

■ High efficient cleaning and grading machinery


■ Removing of impurities
Soaking ■ Preparing of uniform paddy fraction for parboiling

■ Batchwise soaking in open tanks


■ Special soaking time schedule
■ Constant water temperature
Steaming / Cooking ■ Minimized water consumption

■ Continuous steaming with steam cooker, for


paddy and brown rice parboiling
■ Special feeding and discharging system
Pre-drying ■ Highest flexibility by choosing different parboiling parameters

■ Hot air pre-drying with dryer


■ Constant temperature in the whole dryer
Drying / Tempering
■ Temperature control system

■ Gentle column drying in passes


Parboiled Paddy ■ Temperature control for each pass

or Brown Rice
■ Typically parboiled rice, ready for milling
■ Uniform in colour
■ Completely gelatinized, without white bellies

99

Related Interests