DPR for Par Boiled rice Industry

Rice Par Boiling Plant


Detailed Project Report of PARBOILED INDUSTRYfor

AMRUTHA VARSHINI AGRO Tech Pvt Ltd.,

ByVijay Chander Keesara

+91-9392 777 444+91-9959 777 444

E-mail: [email protected]


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 ...................................................................................................... 24.2 PROJECT BRIEF DESCRIPTION .................................................................................................. 44.3 MARKET ENTRY TIMING ......................................................................................................... 44.4 PROPOSED BUSINESS LEGAL STATUS ....................................................................................... 54.5 PROJECT CAPACITY AND RATIONALE ....................................................................................... 54.6 TOTAL PROJECT INVESTMENT.................................................................................................. 54.7 PROPOSED PRODUCT MIX ........................................................................................................ 54.8 RECOMMENDED PROJECT PARAMETERS ................................................................................... 54.9 PROPOSED LOCATION .............................................................................................................. 5

5 SECTOR & INDUSTRY ANALYSIS ........................................................................................... 5

5.1 WORLD RICE PRODUCTION AREAS .......................................................................................... 55.2 RICE & ITS VARIETIES ............................................................................................................. 65.3 RICE GRAIN ............................................................................................................................ 65.4 TYPES OF RICE ........................................................................................................................ 7

5.4.1 White Rice ......................................................................................................................... 75.4.2 Jasmine Rice...................................................................................................................... 75.4.3 Brown Rice ........................................................................................................................ 85.4.4 Glutinous Rice ................................................................................................................... 85.4.5 Broken Rice ....................................................................................................................... 85.4.6 Short Grained Rice ............................................................................................................ 85.4.7 Paddy ................................................................................................................................ 85.4.8 Black Rice ......................................................................................................................... 85.4.9 Red Rice ............................................................................................................................ 8

6 SECTOR CHARACTERISTICS .................................................................................................. 9

6.1 INTERNATIONAL RICE MARKET ............................................................................................... 96.1.1 Demand Analysis. .............................................................................................................. 96.1.2 Consumption Pattern of Rice.............................................................................................. 96.1.3 Supply Analysis................................................................................................................ 106.1.4 Rice Production and Composition of Production .............................................................. 10

6.2 WORLD PRICE FOR RICE ........................................................................................................ 116.2.1 Top Ten Importing & Exporting Countries of Rice............................................................ 13

6.3 INDIA MARKET............................................................................................................... 176.3.1 Basmati Rice from India ............................................................................................. 176.3.2 Types and Forms of Rice.................................................................................................. 17

6.3.2.1 Super Kernel ........................................................................................................................ 176.3.2.2 Basmati Rice 385 ................................................................................................................. 176.3.2.3 Brown Rice .......................................................................................................................... 186.3.2.4 Parboiled Rice ...................................................................................................................... 18

6.3.3 Production of Rice (Supply Side Analysis) ........................................................................ 186.3.4 Local Consumption pattern .............................................................................................. 196.3.5 Price Pattern ................................................................................................................... 20

6.4 LEGAL ISSUES REGARDING INDUSTRY ................................................................................... 23


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

7.1 PAR BOILING ........................................................................................................................ 23

7.1.1 Vacuum ........................................................................................................................... 247.1.2 Soaking............................................................................................................................ 247.1.3 Heating and Drying of Soaked Rice.................................................................................. 24

7.2 RICE MILLING ....................................................................................................................... 267.2.1 Reception & Storage ........................................................................................................ 267.2.2 Husking Unit ................................................................................................................... 267.2.3 Pre-cleaner...................................................................................................................... 267.2.4 Cleaning.......................................................................................................................... 267.2.5 Husking ........................................................................................................................... 267.2.6 Phak Grader .................................................................................................................... 277.2.7 Husk Separator ................................................................................................................ 277.2.8 Paddy Separator .............................................................................................................. 277.2.9 Destoner.......................................................................................................................... 277.2.10 Reprocessing Unit ....................................................................................................... 277.2.11 Separator .................................................................................................................... 277.2.12 Combi- Cleaner: ......................................................................................................... 27

7.2.12.1 Scalping Cylinder ................................................................................................................. 287.2.12.2 Double Stage Sieves Cleaner ................................................................................................ 287.2.12.3 Air Aspirator ........................................................................................................................ 28

7.2.13 Magnetic Cleaning ...................................................................................................... 287.2.14 Silky Polisher .............................................................................................................. 287.2.15 Whitening & Polishing ................................................................................................ 287.2.16 Grading ...................................................................................................................... 297.2.17 Color Sorting .............................................................................................................. 29

8 MARKET INFORMATION ....................................................................................................... 29

8.1 MARKET POTENTIAL ............................................................................................................. 298.2 TARGET CUSTOMERS ............................................................................................................ 298.3 TRADE STATISTICS ................................................................................................................ 29

9 PRODUCTION PROCESS ......................................................................................................... 29

9.1 PRODUCTION PROCESS FLOW ................................................................................................ 299.2 PRODUCT MIX OFFERED ........................................................................................................ 309.3 RAW MATERIAL REQUIREMENT ............................................................................................. 309.4 TECHNOLOGY AND PROCESSES .............................................................................................. 30

9.4.1 Technology/Process Options ............................................................................................ 309.4.2 Merits & demerits of a particular technology ................................................................... 30

9.5 MACHINERY REQUIREMENT .................................................................................................. 309.6 PRODUCT/PROJECT STANDARDS AND COMPLIANCE ISSUES .................................................... 31

10 LAND & BUILDING REQUIREMENT .................................................................................... 31

10.1 TOTAL LAND REQUIREMENT ................................................................................................. 3110.2 COVERED AREA REQUIREMENT ............................................................................................. 3110.3 CONSTRUCTION COST ........................................................................................................... 3110.4 RENT COST ........................................................................................................................... 3110.5 RECOMMENDED MODE.......................................................................................................... 3110.6 SUITABLE LOCATION............................................................................................................. 31

11 HUMAN RESOURCE REQUIREMENT................................................................................... 31

12 FINANCIAL ANALYSIS............................................................................................................ 32

12.1 PROJECTED INCOME STATEMENT ........................................................................................... 3312.2 PROJECTED BALANCE SHEET ................................................................................................. 33


12.3 PROJECTED CASH FLOW STATEMENT ..................................................................................... 3512.4 RATIO ANALYSIS .................................................................................................................. 36

Waste Minimization

1. Background2.Material Balance and Specific

Consumptions3. Waste Generation Areas4. Waste Minimisation Measures

i) Dust in the Paddy unloading areaii) Improvements in Husk Collection and Storage systemiii) Other Dust Control Measures

i v )S tea m Genera t i o n an d Distribution v) Effluent Management vi) Electrical System

vii) Equipment Maintenanceviii) Support Services

5. Constraints6. Conclusion

PARBOILED RICE

1.0 PRODUCT AND ITS APPLICATIONS2.0 MARKET POTENTIAL3.0 BASIS AND PRESUMPTION4.0 IMPLEMENTATION SCHEDULE5.0 TECHNICAL ASPECTS

5.1 Process of Manufacture5.2 Quality Control and Standards

6.0 POLLUTION CONTROL7.0 ENERGY CONSERVATION8.0 PRODUCTION CAPACITY9.0 FINANCIAL ASPECTS

9.1 Fixed Capital9.1.1 Land & Building9.1.2 Machinery and Equipment9.1.3 Pre-operative Expenses9.1.4 Total Fixed Capital

9.2 Recurring expenses per annum9.2.1 Personnel9.2.2 Raw Material including packaging materials9.2.3 Utilities9.2.4 Other Contingent Expenses9.2.5 Total Recurring Expenditure

9.3 Working Capital


9.4 Total Capital Investment

10.0 FINANCIAL ANALYSIS10.1 Cost of Production10.2 Sale Proceeds10.3 Net Profit10.4 Net Profit Ratio10.5 Rate of Return on Investment10.6 Annual Fixed Cost10.7 Break even Point

11.0ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS

Cluster StudyIntroductionAge of the ClusterNature of the ClusterIndustry ScenarioCluster DetailsStructure of ClusterEvolution of ClusterProduction process - description of value chainAnalysis of Value Chain( as per FAQ standard)Analysis of Business operationsPresence of support institutionsBusiness Development Service ProvidersInfrastructure analysis of ClusterCredit analysis of the clusterSocial and Environmental Conditions of the ClusteranalysisVision for the ClusterKey Problem Areas & strategic interventions proposedExpected major outputs

BROAD ACTION PLAN

Article Outline1. Introduction2. Methodology2.1. Goal definition and scoping2.1.1. System boundary2.1.2. Functional unit2.2. Inventory analysis and data collection2.2.1. Life cycle energy consumption2.2.2. Air emission2.3. Production cost of rice

http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6T8J-4JW7FG7-2&_user=10&_coverDate=04%2F30%2F2007&_rdoc=1&_fmt=full&_orig=search&_cdi=5088&_sort=d&_docanchor=&view=c&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=01e63e387ef%20










3. Results and discussion3.1. Resources consumption3.2. CO2 emission3.3. Production cost3.4. Effect of method switching on CO2 emission

Annexure IPromotersKYC

Annexure IICostingsRevenue Projections5 Year Projected Balance SheetsQuotations

Annexure IIIFuture PlansExpansion ProgramCaptive Power Plant







Pre Feasibility Study


Waste Minimization


PARBOILED RICE


Cluster Study


Article Outline

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11 IINNTTRROODUCDUCTTIIOONN

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

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information may 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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22 PPURURPPOOSSEE OOFF TTHHEE DDOOCUCUMMEENNTT

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.

33 CCRUCRUCIIAALL FFACACTTOORRSS && SSTETEPPSS IINN DDEECCIISSIOIONN MMAAKIKINNGG FFOORR IINVNVEESTSTMMEENNTT IINN TTHHEE PPRROOJJEECCTT

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.

44 PPRROOJJEECCTT PPRROOFFIILLEE

44..11 OppOppoorrttuniunittyy RaRattiioonnaallee

4


Parboiled rice is one of the most popular rice products in Europe, 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.

Country 1970 1980 1990United Kingdom 1.4 3.3 3.7Germany 1.6 2.0 3.4Ireland 1.0 2.1 1.8Belgium + Luxemburg

1.6 4.2 3.5

Netherlands 3.0 5.1 5.1Denmark 1.6 2.1 2.7France 2.5 3.7 3.2Italy 3.9 4.6 5.7Spain - 6.3 6.3Portugal - 15.1 15.1Greece - 5.1 5.1

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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.

Kg/person/year

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European regions have been showing increasing demand for rice imports. CzechRepublic 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.

44..22 PPrroojjecectt BBrriieeff DDeessccrripipttiionon

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

8


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.

44..33 MMaarrkkeett EEnnttrryy TTiimminingg

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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44..44 PPrrooppoosseedd BBuussinineessss LLeeggaall SSttaattuuss

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 appropriatebusiness structure (proprietorship/partnership/company) and

will give rationale for its selection.

44..55 PPrroojjecectt CaCappaacciittyy aanndd RaRattiioonnaallee

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.

44..66 TToottalal PPrroojjecectt IInnvveesstmtmeenntt

Financial SummaryProject Cost IRR NPV Payback

PeriodCost of Capital

(WACC61,048,692

56% 49,221,527

2.38 years 17%

44..77 PPrrooppoosseedd PPrrooduducctt MMiixx

This will include the proposed products, which will be produced by the project.

44..88 RRececoommmmeendndeedd PPrroojjecectt PPaarraammeetteerrssCapacity Human

ResourceTechnology/Machinery

LocationInstalled HuskingCapacity

No. of employees

Local/Foreign SuitableLocations

25,200

70 Both

Sind Rice Belt (Larkana, Dadu etc )

44..99 PPrrooppoosseedd LLooccaattiionon

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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55 SSEECCTTOORR && IINDUNDUSSTTRRYY ANAANALLYYSSIISS

55..11 WoWorrlldd RRiiccee PPrrooduduccttiionon AArreeaass

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 about55% of the total crop.

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World Production Areas

L. America4%

E. Asia45%

S.E Asia22%

Africa2%

S. Asia

24%

Rest of the world

3%

55..22 RRiiccee && iittss VaVarriieettiieess

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

55..33 RRiiccee GGrraaiinn

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.

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.

55..44 TTyyppeess ofof RRiiccee

55..44..11 WWhhititee RRiiccee

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.

55..44..22 JJaassmmiinene RRiiccee

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.

55..44..33 BBrroowwnn RRiiccee

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.

55..44..44 GGlluutitinousnous RRiiccee

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.

55..44..55 BBrrookekenn RRiiccee

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.

55..44..66 ShoShorrtt GGrraaiinneedd RRiiccee

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.

55..44..77

PPaddyaddy

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.

55..44..88 BBllaacckk RRiiccee

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.

55..44..99 RReedd RRiiccee

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.

66 SSEECCTTOORR CCHHARACARACTTEERRIISSTTIICCSS

66..11 IInntteerrnnaattiioonnalal RRiiccee MMaarrkkeett

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.

66..11..11 DDeemandmand AAnanallyyssiiss..

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.

66..11..22 CCononssumpumptitionon PPaatttteerrnn ofof RRiiccee

World rice consumption in 1999/2000 - 2002/2003 (milled basis)

Units in thousand metric tons

Country 1999/2000

2000/2001

2001/2002

2002/2003China 133,76

3134,356

134,595

134,800India 82,67

075,851

82,251

84,000Indonesia 35,40 35,87 36,35 36,79

Bangladesh 23,76 25,79 26,25 26,25Vietnam 16,77 17,27 17,40 17,70Thailand 9,300 9,400 9,500 9,600Burma 9,330 9,350 9,400 9,475Philippines 8,400 8,750 8,900 9,105Japan 9,450 9,000 9,000 9,000Brazil 7,95

67,956

7,958

8,000Korea, South 4,98

65,000

5,100

5,100United States 3,84

63,676

3,889

3,969Egypt 2,856 3,015 3,150 3,275

Iran 3,019 3,050 3,075 3,100EU 2,190 2,207 2,215 2,190Korea, North 2,000 1,837 1,500 1,950Taiwan 1,315 1,265 1,150 1,150South Africa 531 525 550 600Others 40,78

842,168

41,696

42,607WORLD TOTAL 398,3 396,3 403,9 408,6

The above table reveals that during the last four years the rice consumption has been increasing and this increase will result into more production.

66..11..33 SuppSuppllyy AAnanallyyssiiss

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.

66..11..44 RRiiccee PPrroduoducctitionon andand CCompoompossitiitionon ooff PPrroduoducctitionon

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 at80 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 relyheavily 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.

Country 1999/2000 2000/01 2001/02 2002/03China 138,936 131,536 124,320 123,200India 89,700 84,871 91,600 80,000Indonesia 33,445 32,548 32,422 32,500Bangladesh 23,066 25,086 25,500 26,000Vietnam 20,926 20,473 20,670 20,500Thailand 16,500 16,901 16,500 16,500Burma 9,860 10,771 10,440 10,440Philippines 7,772 8,135 8,450 8,300Japan 8,350 8,636 8,242 8,200Brazil 7,768 7,062 7,480 7,600United States 6,502 5,941 6,764 6,457Korea, South 5,263 5,291 5,515 5,300Egypt 3,787 3,965 3,575 3,800Pakistan 5,156 4,700 3,740 3,500EU 1,751 1,567 1,620 1,792Taiwan 1,349 1,342 1,245 1,197Australia 787 1,259 930 965Others 28,282 27,270 27,575 28,156WORLD TOTAL 409,200 397,354 396,588 384,407

World rice production in 1999/2000 - 2002/2003 (milled basis)Unit: thousand metric tons

Source: USDA, Foreign Agricultural Services (FAS), Aug 20021Source: h ttp://w w w .foodmarketexchang e .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.

http://www.foodmarketexchange.com/



Year Basmati Rice American Rice Thai Rice Australian Rice1986 722 455 223 3521987 688 416 215 3291988 736 519 287 4721989 710 510 377 477

Type 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005Long Grain Rice, High Quality

Thai 100% B (FOB)

338 306 296 300 300 309 310 317 319 323

Thai 5% (FOB) 331 295 285 289 289 297 299 305 307 311US No. 2, (FOB Houston)

450 418 413 409 414 424 428 435 438 443

US No. 2 - Thai5%

119 123 128 121 125 127 129 129 131 132

Long Grain Rice, Low Quality

Thai 35% (FOB) 259 254 244 248 253 260 261 267 270 275

US Wheat No.2 (FOB Gulf)

184 155 150 151 157 159 160 162 164 166

Thai 35% - US Wheat

75 99 95 97 96 101 101 105 106 106

Medium Grain Rice

US No. 2 MG Rice(FOB CA)

415 396 409 406 407 411 412 415 417 420

66..22 WoWorrlldd PPrriiccee ffoorr RRiiccee

Historical Price Trends of Rice

Average (C&F) Price of Rice US $ PMT

1990 675 519 319 4741991 662 521 360 4571992 725 555 346 4841993 582 511 338 4971994 546 565 365 5141995 572 509 368 5261996 503 536 436 5711997 629 538 438 5561998 674 617 393 5201999 641 556 355 5272000 529 569 363 551

Global Rice Price Trends and projections (1996-2003)

Units: USD/metric ton

Countries 1999 2000 2001 2002 August 2003 AugustIndonesia 3729 1500 1500 3250 3250Iran 1313 1100 735 1250 1500Nigeria 950 1250 1738 1500 1500Iraq 779 1274 959 1000 1100Saudi Arabia 750 992 1053 900 1000EU 784 852 800 800 850Senegal 700 502 863 900 750Japan 633 656 680 650 650Philippines 1000 900 1175 1200 650Cote d’ Ivoire

600 450 654 575 600

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 PricesThailand USD/

ton(FOB

USA USD/ton(FOB

India USD/ton

India

USD/ton

Vietnam

USD/ton

FWR

520

Long(AR)

236.2-

SHORT

200

PR 106

196

5%

183

WR

197

Medium

275.6-

SHORT

196

PR 106

195

10% 178

5%

191

Medium

315-472.4

SHORT

189

PR 106

175

15% 171

25% 174

Short

403.54-

SHORT

210

Basmati

850

25% 163

** All prices are FOB

66..22..11 TTopop TTeenn IImpomporrtitingng && EExxpoporrtitingng CCounounttrriieess ofof RRiiccee

Top Ten Importing CountriesUnit: Thousand Metric Tons

Val

ue

000

ton

s

Top Ten Rice Importers

350030002500200015001000

5000

Series2

Countrie s

ImportIndonesia is likely to remain the world’s number one rice importer in 2003, withapproximately 3.25 million tons, unchanged from this year’s estimate. The country needsto 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

Country

1999 2000 2001 2002

(August

2003

(AugustIndonesia 3,7 1,5 1,5 3,2 3,2

Iran 1,31 1,10 735 1,25 1,50Nigeria 950 1,2 1,7 1,5 1,5

Iraq 779 1,274

959 1,000

1,100

Saudi Arabia 750 992 1,05900 1,00EU 784 852 800 80 85Senegal 700 502 863 900 750Japan 633 656 680 65 65Philippines 1,0

00900 1,1

751,200

650Cote d'Ivoire 600 450 654 57 60

Malaysia 617 596 633 600 600South Africa 514 523 572 55 55Bangladesh 1,22638 402 300 500Mexico 342 415 388 50 50Cuba 431 415 481 455 475Korea, North 159 400 537 15 45United States 358 308 413 420 430Brazil 781 700 673 60 40China 178 278 267 200 400Eastern Europe 361 343 381 35 35Russia 580 400 247 275 350Singapore 421 354 444 32 32Turkey 321 309 231 250 325Guinea 300 275 325 27 30Canada 248 250 262 265 270Haiti 235 245 250 26 26Yemen 217 210 202 200 250Ghana 125 186 211 21 22Syria 200 150 172 180 180Uzbekistan 40 30 142 17 17Korea, South 137 151 99 150 150Taiwan 5 3 23 12 13Colombia 38 60 163 75 100Nicaragua 88 60 117 10 10Sri Lanka 205 18 35 80 100Honduras 75 80 96 75 80UAE 75 75 75 80 80El Salvador 28 30 76 75 75Jamaica & Dep 71 75 75 75 75Costa Rica 56 48 41 65 70Peru 116 86 62 55 60O.W. Europe 50 50 55 50 50Other Countries 3,45 3,84 4,17 4,24 4,13Unaccounted 1,65 1,76 1,97 1,12 1,18WORLD TOTAL 24,9 22,8 24,4 24,9 25,5

Unit: thousand metric tonsSource: USDA, Foreign Agricultural Service (FAS), August 12, 2002

Valu

e in

000

tons Top Ten Exporters of Rice

80007000600050004000300020001000

0

Series2

Countrie s

Export

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 and2003, unchanged from 2001. India and Vietnam will continue to trade places in 2003, asthe 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

Country

1999 2000 2001 2002 (Aug

12

2003 (Aug

12Thailand 6,679

6,549

7,521

7,500

7,500India 2,75

21,449

1,936

4,500

4,000Vietnam 4,55 3,37 3,52 2,80 3,50

United States 2,644 2,847 2,541 2,950 2,950China 2,708 2,951 1,847 1,500 2,250Burma 57 159 670 1,500 1,500Pakistan 1,838 2,026 2,417 1,250 800Uruguay 681 642 806 650 650Australia 667 617 618 400 500Egypt 320 500 705 500 500EU 348 308 275 275 325Argentina 674 332 363 350 300Guyana 252 167 175 150 175Others 766 929 1,051 624 614World Total 24, 941 22, 846 24, 453 24, 949 25, 564

Units Thousand Metric Tons

Source: USDA, Foreign Agricultural Service (FAS), August 12, 2002

66..33 IndiaIndia MMaarrkkeett

66..33..11 BBaassmamattii RRiiccee ffrromom IndiaIndia

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.

66..33..22 TTyyppeess andand FFoorrmsms ofof RRiiccee

66..33..22..11SSupupeerr

KKeerrnneell

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.

66..33..22..22BBaassmmaattii RRiiccee 385385

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

66..33..22..33BBrroownwn RRiiccee

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.

66..33..22..44PPaar-r-bbooilileedd RRiiccee

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.

66..33..33 PPrroduoducctitionon ofof RRiiccee ((SuppSuppllyy SSiidede AAnanallyyssiiss))

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 and1994.

Historical Rice Production Statistics

Year Production('000 Metric Tons)

Milled Production('000 Metric Tons)

1988 4,800 3,2001989 4,830 3,2201990 4,898 3,2651991 4,865 3,2431992 4,674 3,1161993 5,993 3,9951994 5,171 3,4471995 5,951 3,9671996 6,461 4,3071997 6,500 4,333

Source: http://ww w .usda . gov

http://www.usda.gov/

Year 1998-99 1999-00 2000-01 2001-02 2002-03Rice 4674 5156 4803 3882 4478

Year Basmati Short Grain Others Total (000 tons)1992-93 1,124 1,798 194 3,1161993-94 1,267 2,524 204 3,9951994-95 1,352 1,927 168 3,4471995-96 1,488 2,284 195 3,9671996-97 1,538 2,494 273 4,3051997-98 1,439 2,468 426 4,3331998-99 1,552 2,662 460 4,6741999-00 1,713 2,936 507 5,1562000-01 1,596 2,735 522 4,8032001-02 1,416 2,173 185 3,774

Year wise Rice Production ComparisonThousand Tons

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 Production

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%.

66..33..44 LLooccalal CCononssumpumptitionon papatttteerrnn

The per capita local consumption may be calculated by local consumption. Ministry ofAgriculture has calculated the per capita consumption of rice, which is as following.

Year Population(000 Nos)

Production(000 Tons)

LocalConsumption(000 tons)

Surplus forExport

(000 tons)

Per

capitaconsumptio1991-92 117,32

03,243

1,407

1,834

11.991992-93 120,46

53,116

1,772

1,344

14.701993-94 124,46

53,994

2,000

1,315 16.06

1994-95 128,199

3,446

2,064

1,464 16.091995-96 132,04

53,966

2,130

1,623 16.131996-97 136,00

64,304

2,199

1,795 16.161997-98 140,08

74,333

2,269

1,980 16.191998-99 143,72

64,673

2,340

2,071

16.28

1999-00 147,466 5,155 2,413 2,165 16.362000-01 151,300 4,802 2,488 2,264 16.44Average 4103 2108 1785 15.64Growth 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%.

66..33..55 PPrriiccee PPaatttteerrnn

Local prices of finished and raw rice are as following

TTaabbllee 66--11 WWhhoolleessaallee pprriicecess ooff didiffffeererenntt vavarriieettiieess ffrroomm JaJanunuaarryy 20012001 ttoo JaJanunuaarryy 20022002

Rice Variety Market Unit(Kg)

Prices (Rs. 40 Kg)

Jan-2001

Dec-2001

Jan-2002Rice Short Grain Sindh

av. QualityQuetta 40 390 440 440

Rice Short Grain Sindh av. Quality

Sukkur 40 310 350 320Rice Short Grain Sindh av. Quality

Larkana 40 400 300 330Rice Short Grain

Sindh brokenKarachi 40 38

0310

322.50

Rice Short GrainSindh broken

Hyderabad

40 282.50

300

329.00

Rice Short GrainSindh brokenav. Quality

Sukkur 40 305

320

320

Rice Short GrainSindh broken

Larkana 40 300

280

280

TTaabbllee 66--22 PPrriicecess ofof DDiiffffeererenntt VaVarriieettiieess ofof RRiiccee PPaaddddyy--20022002Variety

Unit Rs.Short Grain-6 40 Kg 210Short Grain-9 40 Kg 240Basmati-385 40 Kg 370Basmati-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.

Year Basmati Other Varieties TotalQty. (mil. Tons)

Value Qty. (mil. Tons)

Value Qty. (mil. Tons)

Value

1990-91 446 218 738 128 1,205 3461991-92 558 230 954 185 1,512 4161992-93 462 199 570 118 1,032 3171993-94 306 126 679 116 984 2421994-95 452 184 1,400 271 1,852 4541995-96 716 295 884 209 1,601 5041996-97 457 205 1,310 264 1,767 4691997-98 552 253 1,539 309 2,091 5621998-99 559 283 1,200 250 1,789 5341999-00 570 290 1,346 249 1,916 540

Product Mix Varieties /Price per 40 Kg bag (Rs.)Short Grain-6

Short Grain-9

Basmati-385

Basmati-SuperRice Broken

Small325 365 425 465

Rice Broken Large

300 340 400 440Bran 180 180 180 180Nikko 280 280 280 280Choba 210 210 210 210Dust 150 150 150 150Husk 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 IndiaIndia is a major rice exporter and rice is one of the top ten commodities beingexported 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.

TTaabbllee 66--33 YYeeaarrllyy ccoommppaarriissonon ofof EExxppoorrttss ofof BBaassmmaattii aanndd ootthheerr VaVarriieettiieess

((UUSS $$mmilillliion)on)

Source: FBS

TTaabbllee 66--44 HiHissttoorriiccalal RRiiccee EExxppoorrtt CoCommppaarriissonon

Year

Quantity(M.T)

Value000 Dollars

A. U. Price per M.T

% share in total exports

% change inValue

1987-88 1,210,199 363,105 300.04 8.2 21.21988-89 854,320 303,391 355.36, 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 44.71991-92 1,511,844 415,680 274.95 6 20.11992-93 1,032,132 317,110 307.24 4.7 23.71993-94 984,325 242,167 246.02 3.6 23.61994-95 1,852,267 454,244 245.24 5.6 87.61995-96 1,600,524 503,957 314.87 5.8 10.91996-97 1,767,206 468,563 265.14 5.6 (7.0)1997-98 2,091,243 562,424 268.94 6.5 20.01998-99 1,788,774 533,573 298.29 6.9 (5.1)1999-00 1,916,054 539,670 281.66 6.3 1.12000-01 2,456,023 525,548 213.98 5.7 (2.6)

Source :

TTaabbllee 66--55 TTopop TTeenn EExxppoorrttiningg PPaarrttnneerrss wwiitthh IndiaIndia ffrroomm 19971997--9898 ttoo 20002000--0101

Quantity in M.T.Value in ‘000’ Dollars

Countries 1997-98 July

Jun

1998-99 July June

1999-00 July June

2000-01 July

JunQuantity

Value

Quantity

Value Quantity

Value Quantity

ValueDubai 185,1

2877,850

255,925

106,016

258,302

105,475

267,313

99,458African

Countries N

287,933

50,092

322,435

65,536

361,709

65,093

482,471

71,456

Afghanistan

38,413

4,821

50,798

7,932

193,203

29,524

297,129

42,279Saudi

Arabia60,119

28,906

85,141

39,972

91,315

39,530

80,045

30,358

Oman 84,200

34,087

63,262

28,171

75,229

33,474

49,376

20,313Qatar 26,62

812,220

27,234

12,161

58,876

25,288

43,935

16,512Ivory Cost 4,20

0858

6,030

1,348

10,000

1,730

105,629

14,911U.K 18,81

813,503

30,627

20,000

30,474

18,200

31,677

14,776Kenya 288,7

9964,040

81908

20,270

15,126

2,978

76,282

13,248Kuwait 20,95

89,399

36,063

15,134

30,465

14,704

29,469

12,930

1999-2000 1,916,054 539,6702000-2001 2,456,023 525,548

TTaabbllee 66--66 TToottalal EExxppoorrttss ofof RRiiccee ffrroomm 19961996--9797 ttoo 20002000--20012001

Year Quantity

Value1996-97 1,767,2

06468,563

1997-98 2,091,243

562,4241998-99 1,788,77

4533,573

Source:

66..44 LLeegalgal IIssssuueess RReeggaarrdindingg IIndundussttrryy

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.

77 PPRROOCCEESSSSIINNGG PPLLAANN

77..11 PPaarr

BBooiilliningg

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.

77..11..11 VVaaccuumuum

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.

77..11..22 SoaSoakkiingng

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 at6 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.

77..11..33 HHeeaatitingng andand DDrryyiingng ooff SoaSoakekedd RRiiccee

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 reaches14% 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 DescriptionTaste and Texture

Change in taste and texture of the rice, preferred by some consumers and disliked by others.Gelatinization of

StarchGelatinization of starch making the grain translucent, hard, and resistant to breakage during milling which increases milling recovery for head rice and total white rice yields.Enzyme

InactivationInactivation of all enzymes which stops biological 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.

77..22 RRiiccee MMiilllliningg

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. Theprocess is called husking or hulling or shelling. After this process, the final product is“brown or cargo rice”.

77..22..11 RReceecepptitionon && SSttoorrageage

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.

77..22..22 HuHusskkiingng UnUniitt

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.

77..22..33 PPrree--cclleeananeerr

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.

77..22..44

CClleeananiingng

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.

77..22..55

HuHusskkiingng

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 done100% and hence, will still be having the unhusked kernels. These are separated in a laterprocess 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.

77..22..66 PPhakhak GGrradadeerr

This grader separates the brown rice into grades of large, medium and small sizes. It delivers them into separate bins provided for interim storage.

77..22..77 HuHusskk SSeepaparraattoror

This machine separates husk from the kernels by application of rubber roller friction to husk.

77..22..88 PPaddyaddy SSeepaparraattoror

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.

77..22..99

DDeessttononeerr

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.

77..22..1010 RReepprroocecessssiingng UnUniitt

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)

77..22..1111 SSeepaparraattoror

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.

77..22..1212 CCombombii-- CClleeananeerr::

The combi-cleaner is the combination of three separate individual units i.e.

1. Scalping Cylinder (optional)2. Double Stage Sieves Frame3. Strong air Flow Aspirator

This machine is capable of fulfilling the requirements of cleaning of grains and similarproducts.

77..22..1122..11 SSccaallppiingng CCyylliindndeerrThrough a vertical pipe equipped with an adjusting valve & gravity flap, adjustable bycounter 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.

77..22..1122..22 DDooububllee SSttaagege SSiieevveess CClleeaanneerrAfter 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.

77..22..1122..33 AAiirr AAssppiirraatotorrA 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.

77..22..1313 MMagnagneetiticc CClleeananiingng

The magnets attract iron particles in the stock. Permanent type magnets are provided at the discharge of cleaned stock.

77..22..1414 SSililkkyy PPoolilisshheerr

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.

77..22..1515 WWhhititeenniingng && PPoolilisshhiingng

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.

77..22..1616 GGrradadiingng

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.

77..22..1717 CCoolloror SoSorrtitingng

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.

88 MMARARKKEETT IINNFFOORRMMAATTIOIONN

88..11 MMaarrkkeett PPootteennttiialal

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.

88..22 TTaarrggeett CCuussttoommeerrss

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.

88..33 TTrraaddee SSttaattiissttiiccss

This section of the report will provide trends and statistics of India as

99 PPRROODUCDUCTTIOIONN PPRROOCCEESSSS

9.1 PPrrooduduccttiionon PPrroocceessss FFllowow

Paddy Soaking Steaming

Hulling De-stonin

g

Drying

Head Rice (full length)

Rice grinding for refinement

Water Polisher

Packaging Rice Grading

.

99..22 PPrrooduducctt MMiixx OOffffeerreedd

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.

99..33 RawRaw MMaatteerriialal RReequiquirreemmeenntt

Units(tonnes)

Cost TotalShort Grain-6 paddy 12,600 8,750 110,250,000Short Grain-9 paddy 12,600 10,75

0135,450,000Total 25,200 245,700,

99..44 TTecechnhnoollogyogy aanndd PPrroocecesssseess

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 moreattractive the plant would be.

99..44..11 TTecechnohnollogogyy//PPrroocceessss OpOptitionsons

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 toadjust differing forms and types of raw materials.

99..44..22 MMeerrititss && ddeemmeerriittss ofof aa paparrtiticcuullarar ttecechnohnollogyogy

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.

99..55 MMaacchinhineerryy RReequiquirreemmeenntt

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

99..66 PPrrooduducctt//PPrroojjecectt SSttaandndaarrddss AAnndd CoCommpplliiaannccee IIssssuueess

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.

1010 LLANANDD && BBUUIILLDDIINNGG RREEQQUUIIRREEMMEENNTT

1010..11 TToottalal LLaanndd RReequiquirreemmeenntt

Total land requirement is about 1.1 acres. This is done keeping in mind the future expansion of the project.

1010..22 CovCovereeredd AArreeaa RReeququiirreemmeenntt

Approximately 30,000 sq. feet would be covered by the 2.5ton/hour plant and the accompanying infrastructure needs.

1010..33 CoConnssttrruuccttiionon CoCosstt

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.

1010..44 RReenntt CoCosstt

There would be no rent cost as the land is being assumed as being purchased outright.

1010..55 RRececoommmmeendndeedd MMooddee

The method of acquiring land is preferably purchase as both leasing and renting could prove to be inconvenient over the long term.

1010..66 SuiSuittaabbllee LLooccaattiionon

Location should preferably be near the rice producing regions of Sind, which lie all along the river Indus, especially in Larkana, Dadu, etc.

1111 HHUUMMAANN RRESESOOURCURCEE

RREEQQUUIIRREEMMEENNTT

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 ofthe 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.

1212 FFIINANCNANCIIAALL AANANALLYYSSIISS

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:

1212..11 IIninittiialal FFininaannccininggInitial Financing Rs. in 000sDebt 30,524,346Equity 30,524,346Lease 0Export re-finance facility 0

Capital Costs

Capital Investment Rs. in 000sLand 3,028,638Building/Infrastructure 17,345,200Machinery & equipment 22,263,389Furniture & fixtures 268,500

Office vehicles 974,650

Office equipment 221,500Pre-operating costs 1,905,684Training costs 50,00

0Total Capital Costs 46,057,561

Working Capital

Working Capital Rs. in 000sEquipment spare part inventory 50,64

9Raw material inventory 14,669,115Upfront office vehicles lease rental * 0Upfront insurance payment 271,366Cash 0Total Working Capital 14,991,131

Pre-feasibility Study Rice Par Boiling Plant

33

1212..11 PPrroojjecectteedd IInnccoommee SSttaatteemmeenntt

1212..22 PPrroojjecectteedd BBaallaannccee ShSheeeett

34


35


1212..33 PPrroojjecectteedd CaCasshh FFllowow SSttaatteemmeenntt


1212..44 RaRattiioo AAnnaallyyssiiss

37

W

WASTE MINIMISATION IN RICE MILLS

I. V. R. Kumar, WMC Facilitator,CEO Maruti Consultants, Hyderabad

1. Background

e eat rice every day with nonchalance, but if we spare a moment of thought we shall be amazed to find about the amount of energy consumed in rice milling and the pollution caused by the rice mills. The state of Andhra Pradesh is a major rice producer with more than 25,000 rice mills. The process of par boiling paddy followed by milling operations to produce rice consumes energy, generates dust and wastewater. The rice mill owners do not generally appreciate that they are wasting energy and polluting the environment. In this scenario a Waste Minimisation Circle (WMC) has been established in the rice mill sector so as to bring the rice mills to collectively devise methods to check the wastages and improve process operations to increase individual

productivity andimprove environmental performance.

There are mainly two types of rice produced in the mills – the raw rice and the par boiled rice. Paddy is cleaned, milled and polished to produce raw rice. The paddy when cleaned, parboiled using steam, dried and then milled produces par boiled rice. The milling and polishing processes are same for producing raw rice and parboiled rice except for some minor variations. A schematic flow diagram detailing the Rice Milling Section is give in the figure on page 8.

Two WMCs have been established in Nizamabad – a town about 170 km from Hyderabad after the Awareness Workshop conducted in September’98. One WMC with four members functions for the raw rice mills. Second WMC with four members functions for par boiled rice mills. Mr. B. Vittal Reddy who was till recently the President of the Nizamabad District Rice Millers Association and the owner of Aishwarya Industries is the local resource person. Both the WMCs are

in Stage V of the six-step methodology having completed the review workshop recently.

2. Material Balance and SpecificConsumptions

The milling of paddy produces 65% rice, 22% husk, 6% bran, 3% broken rice and balance comprises worms and wastage. The milling of paddy and polishing consumes electrical energy and so do other material handling operations. The specific electricity consumption varies from 168 kWh/MT of paddy to 230 kWh/MT of paddy in the member units. The total daily electrical energy consumption is about600 to 700 kWh. The polishing section consumes 60% of the energy; the shelling section consumes 20% of the energy and the balance by material handling and others.

The par boiling of paddy consumes steam for hot water generation, open steam injection while soaking and for drying the soaked paddy. The paddy drier has a hot air generator where steam is used to heat air for drying and hot air is used to dry paddy. The specific steam consumption is 750 kg/MT of paddy. The specific electricity consumption is 261 to 291 kWh/MT of

38

paddy. The hot water after soaking is discharged as effluent. The specific effluent generation is 1000 litres/MT to1300 litres/MT.

The total daily electrical energy consumption of par boiled rice mill is1200 kWh per day. The par boiling section consumes 30% energy, 30% energy is consumed during polishing process and the balance by other areas. The total steam requirement is1400 kgs/hr. The steam consumption for generation of hot water is 600 kgs/hr and in the heat exchanger is800 kgs/hr. Soaking process consumes 600 kgs/hr of steam. Either soaking or hot water generation process uses steam at any given time.

3. Waste Generation Areas

The following are the major wastes and the areas/causes for their generation in rice mills:

• Dust in the paddy unloading area.

The dust accompanies paddy from the fields and gets airborne while opening of the bags and while cleaning of paddy in the mills. It is difficult to quantify dust and the size of dust varies.

• Waste husk due to improper handling of husk from sheller cum husker.

• Improper storage of husk - a valuable resource. The raw rice millers sell husk on a fixed price basis irrespective of the quantity of husk disposed. It is estimated that about 500MT of husk is wasted per annum. Assuming a very low price of Rs.200/- per MT, Rs.1,00,000 per rice mill is wasted. A 40 MT par boiling and paddy milling plant produces about 8.8 MT of husk per day. This should be enough to generate about 1.5 T/hr. of steam. Due to improper storage of husk and inefficient boiler operations some of the circle members purchase rice husk. The value of rice husk procured by the members varied from Rs.1.0 to2.5 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 to condensate wastage and it is drained off. This also delays heat transfer and increases the processing time.

• A 40 MT par boiling plant is expected to generate about 50 kL of effluent per day. Due to improper water management, the quantity of effluent generated is about 30% higher. The effluent has a BOD of 1100 mg/l and COD of 2200 mg/l.

• One other major waste is ash from the boilers. The ash generated will be about 1.5 to 2.5 MT per day. This is just dumped in the boiler yard. The lower the boiler efficiency higher is the ash generation as more fuel is burnt to generate steam.

• The common form of waste for both raw rice mills and par boiled rice mill is electricity and production loss due to poor equipment maintenance. The field measurements of electrical

39

systems indicated power variations upto 20% of a single equipment. This is only based on electrical systems. Further power is wasted due to equipment overloads and improper alignment. The use of excess power is due to use of poorly rewound motors, poor electrical distribution systems and poor maintenance. Use of rewound motors increases current drawn, heats up the motor and thus the environment.

• Improper equipment maintenance decreases the Mean Time Between Failures (MTBF) and due to unplanned shut downs, increases the repair time and use of improper spares.

• The other wastes generated are wastage of bran, broken rice and wastes due to poor house keeping. Though these wastes are lesser in quantity, efforts can be made to improve the collection of bran and keep percentage of broken rice at a lower threshold.

4. Waste Minimisation Measures

The WMC team members met regularly and have identified several measures to reduce waste. Some of t h e m e a s u r e s

h a v e b e e n implemented and others are under further study.

i) Dust in the Paddy unloading area

Significant improvements have been observed by following measures enumerated below:

a) Proper design of the plant as has been done in the case of M/s Tirumala Srinivasa Industries. The unloading area is isolated and sufficient house keeping measures are taken up.

b) Isolation of paddy milling area : In a small plant like Sree Traders, the entire operation from paddy cleaning to rice bagging takes place in a single large hall. The paddy unloading area is isolated by providing a wall. PVC sheet covers can be provided around the conveyors and appropriate slope near the elevator. Presently the mill is using gunny cloth for covering.

This will be replaced by plastic sheets and a wall will be constructed to isolate the paddy cleaning area. The investment is Rs.10,000/-. The dust levels will be reduced by 60%.

c) Constructing a separate room for paddy cleaning. M/s. Vishnu Lakshmi Rice mill is planning to implement the same. The investment is Rs.60,000 for a 50- sq.m area room. The room will have a properly designed exhaust fan.

d) Direct unloading of paddy from truck to hopper: This has been implemented by M/s Aishwarya Industries. This reduces material handling activities. The investment towards a truck bay and construction of appropriate slope is about Rs.15,000/-. Additional investment is required (Rs.10,000) to cover the sides of the unloading area.

It is difficult to calculate the pay back period as there are no direct monetary gains. The hidden benefits are resultant better mill environment and ambience. This improves the worker productivity.

ii) Improvements in Husk Collection and Storage system

a) Eliminate use of gunny

40

packing at joints and use of plastic sheet in the husk separator - negligible investment.

b) Storage of husk on hard ground within four walls and open rooftop. The bulk density of husk being low, large area is required for storing. However, due to totally open storage the husk can fly off due to winds and is a significant resource loss. The investment depends on the area enclosed. The investment is estimated to be Rs.1.50 lakhs for a 500 sq.m area.

c) Construction of Husk Room: This has been implemented by non-WMC members who are in the heart of Nizamabad town to avoid causing pollution in the township. Some of the members of the WMC are planning to implement the same.The investment is Rs.1.00 to Rs.1.50 lakhs.

d) The annual husk generation being about 300 MT, even if 50 MT of rice husk per annum is recovered the savings can be valued at Rs.10,000/-@ Rs.200 per MT of husk.

e) There has been a suggestion for briquetting rice husk using a binder. This is particularly useful for Raw rice mills who can sell husk at a higher price as transport costs come down. This is to be further studied.

iii) Other Dust Control Measures

The dust in other areas can be reduced to a great extent by proper house keeping. The source of generation of dust is from the gaps in material handling equipment, shellers, feeding points of the milling machine, bran handling blower etc. The gaps in the material transfer points can be covered with plastic sheets. The sheets can be lifted periodically to watch the flow of material.This is being implemented gradually by all the 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 m e c h a n i c a l

r e a s o n s .I t i s

recommended to cover these with3mm MS plates. The investment is Rs.6000/- for all the elevators in the system. Thinner sheets should not be used as the sheet can bend when a person stands on it and can lead to accidents.

The Pneumatic conveying system of bran should be sealed properly. The rice bran yield is 2.5 MT per day. The normal bran wastage is about 125 kgs. A proper bran recovery system will save 37 MT of bran valued at Rs.35000/- per annum.

i v )SteamGenerat ionand

Distribution

The existing boilers are improvised versions of Lancashire Boilers. The efficiency of the boilers have been established as low as 40%. The inefficiencies are due to higher flue gas temperature, high level of excess air, improper steam distribution etc. While measures in this area can be

41

endless, the following measures have been implemented by some of the WMC members:

a) M/s Venkata Ramana Paddy Processing Industries have installed a heat exchanger to preheat water. The water is

preheated to 50oC -

60oC. Presently the system is not insulated. The temperature can be increased to

70oC-75oC. The annual fuel savings after the system is perfectly insulated is expected to be 200 MT of husk valued at Rs.40,000/-. The investment of Rs.30,000/- will be paid back in less than one year.

b) The installation of modern boiler has been done in M/s Aishwarya Industries. The boiler has a better air distribution system, better insulation, optimum combustion by proper air fuel ratio. The boiler is seen in the backdrop in the picture on page 7. The exhaust gas from the boiler is not only dust laden but also very hot. The feed water tank has been mounted on the dust collector itself to enable pre- heating of the feed water by the flue gases. The feed water tank is

further insulated with rice husk, which has good insulating properties. The boiler has higher efficiency by a factor of 1.25 compared to the improvised Lancashire Boilers. Anticipated savings are 1000 MT of rice husk per annum valued at Rs.2 lakhs. This unit wanted to invest on a boiler for its expansion. A conventional boiler would cost Rs.8.00 lakhs with recurring maintenance costs. The labour required for handling husk and the boiler is also reduced in the new high efficiency boiler. The total savings will be Rs.2.5 lakhs. The incremental cost being Rs.5.00 lakhs, the pay back period is expected to be just 2 years.

c) The steam distribution system has been scientifically carried out in the expansion part of Aishwarya Industries. The steam tappings for the line, steam traps and

condensate recovery has been implemented as per good engineering practices. This eliminates leaks, ensures proper heat transfer.

d) The dryer uses preheated air at

70oC - 80oC for drying the parboiled paddy. The moisture content of the paddy is reduced from 25% to 13%. This has a heat exchanger to heat air. There is a blower delivering air which passes through the heat exchanger, and the hot air is delivered to the drier. The heat exchanger so far used have finned MS tubes. Aishwarya Industries have introduced Copper finned tubes in the heat exchanger. The add i t i ona l

inves tmen ti s

Rs .70 ,000 / - . Th e d ry in g temperature can also be reduced to

65oC. The air temperature was never monitored by the member industries. This has been started at Aishwarya Industries with the provision of thermometers.

e) Proper heat transfer is achieved by the quality of steam and optimum drying temperatures . The parboiling and drying process has been

42

reduced to 7 hours from 10 hrs and this is expected to be optimised at 5 hrs. This will ensure additional production of 600 MT per annum valued at Rs.73 lakhs.

f) The rice husk ash contains about

80% silica and balance other minerals. The quantity of ash generated can be reduced by 25% to 30% by using a more efficient boiler. Many published articles are available that exhort use of rice husk ash for making bricks, as filler in road laying, using it in canals etc, but none of them have been commercialised. The disposal of rice husk ash continues to be a problem. Some of the WMC members have given it to turmeric farmers who use it as a fertiliser. About 6 to 7 MT of rice husk ash is sold at Rs.400 to Rs.600. This is possible only where turmeric is grown in nearby fields. Otherwise the transport cost will be high and

the concept is not economically viable.

v) Effluent Management

The wastewater effluent is generated only from the par boiled rice mills. In these mills paddy is soaked in hot water in soaking tanks for about 6 hrs. Later open steam is injected for 15 minutes and the paddy is boiled. The water is then drained off as effluent. It has been observed that there is no control of water quantity used for soaking. Following are the WM measures recommended:

a) The soaking tanks will be marked to indicate water level and to avoid over filling. This will reduce the w a t e r

c o n s u m p t i o na n d

consequently effluent generation will decrease. This has been tried and water consumption has been reduced to 1.1 kL/MT of paddy.This leads to a 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. It should be noted that there is no chemical added in the entire process.

b) There is one rice mill which is directly letting out it’s effluent into the fields for irrigation. This has been done for the past few years. The farmers have infact been requesting this mill owner for discharge of the effluent to his fields. Apparently it increases agricultural yield and this requires further study.

c) A full fledged effluent treatment plant using anaerobic/aerobic system(s) will need an investment of Rs.5.00 lakhs to Rs.7.00 lakhs. Since there are more than 70 par boiled rice mills, a common effluent treatment plant can be techno economically viable.

d) The other non-conventional

43

methods like hydroponics have to be experimented.

vi) Electrical System:

The improvements to electrical systems are common to both WMCs (raw rice and par boiled). Following are some of the measures recommended:

a) In the par boiling section the highest HP motor is the motor used for the air blower of the drier. The power and air flow of the blower was measured. The specific air delivery varied from

1400 M3/kW to 2200

M3/kW – a variation of 20%. The power consumed being about 12 kW, the annual energy wasted is14000 kWh valued at Rs.76,000/-. The cost of an efficient blower is Rs.60,000/-. The pay back period is less than one year. Further it is not required to invest in a new blower. The alignment of the blower can be improved and the blade profile checked and dynamical l y balanced.

b) The air requirement of the system can be improved. The latest dryer installed at Aishwarya Industries uses one single blower of 30 HP as against 2 blowers of 20 HP in

other mills for similar capacities. This will save 30000 kWh valued at Rs.1,20,000/-.This emphasizes the randomness of the equipment design and selection by the mill owners.

c) The polisher motor is the largest motor in the milling section. The power measurements in member units varied from 11 kW to 15 kW. Though the power difference can be due to the variety of paddy being milled, at least 2 kW is being wasted in some mills. The analysis of rubber roll sheller indicated a variation of 1 kW with a connected motor of 10 hp.

d) The reasons for higher power consumption are:

• Use of rewound motors. The motors have been rewound many times. This was explained to the WMC members. They have stopped buying rewound motors

• Poor Power factor at the AP Transco incomer and the Tail end. All the mills have single part tariff as they are under LT category. This can be improved by using capacitor banks. Most of the mills have capacitors, but they have broken down.

• When a motor burns down, the mill owner changes it to the higher HP motor without going into the reasons of burn out. What needs to be appreciated is that the investment on 10 HP motor will be about Rs.25,000/- . The running cost at 6000 hrs of annual operation (typical of a rice mill) is Rs.1,26,000/- per annum. Even saving a minimum of 1 kW the investment pays back in a year.

• These factors have been explained to the WMC members and their awareness on the subject has increased. They have gradually stopped buying rewound motors. This will save 30,000 kWh valued at Rs.1,20,000/-. This investment is not accounted for as the replacements are being done as and when a break down occurs.

• The generation of broken rice in the rice mills can be reduced by using slow-speed continuous elevators for both paddy

44

and rice. The investment is Rs,15,000/-. The power saved is 6000 kWh per annum valued at Rs.24,000/-. The additional cost benefit due to reduced broken rice is substantial and the economics is attractive (Rs.6.00 lakhs).

e) Electrical Distribution System:

The electrical distribution systems of all the mills are poor. The fuses and switch gear ratings have no relation to the load, cables are improperly terminated, wires are being used in fuses, no protection systems etc. This warms up the system. There are recurring failures in electrical systems and motor burn-outs are a regular feature. It is difficult to repair the electrical systems piece meal and a total revamping is desired.

A properly designed electrical distribution system designed by the

author has been implemented in Aishwarya Industries for the expansion project. The features of the system are:

• System design instead of equipment design. This facilitates proper load management of AP Transco and DG power.

• Use of Miniature Circuit Breakers (MCB). This eliminates fuses. The system has protections for overload, over voltage and over heating.

• Optimum setting of protection systems. This is very important as improper setting will lead to system failures.

• Proper sizing and termination of cables.

This system is in operation for the last four months without any failure. The incremental cost is Rs.1.00 lakh. The average 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.

vii) Equipment Maintenance

The maintenance of mechanical equipment is by unskilled labour.In the anxiety to get the machine started when a break down occurs, machine alignments are improper and improper spares are used. This reduces the Mean Time between failures. M/s Sree Traders had a failure in the separator. This machine has many dynamic components. The alignment of the system is very important. When the equipment failed, the WMC meeting decided the maintenance to be done by the equipment supplier. Though the down time was more, as the skilled man-power and equipment had to come from Hyderabad, the machine was properly serviced. This increased the Mean Time Between Failure from50 trucks of rice to 150 trucks of rice. The value of additional production is

45

more than Rs.12.00 lakhs. The cost of proper maintenance is only Rs.20,000/-.

viii) Support Services

The role of support services in waste minimisation cannot be ignored. The support services are use of instruments for measurements, training of manpower, availability of skilled manpower, exchange of information, promotion of scientific temperament etc. The WMC members proposed the following actions:

a) The WMC members realised the importance of measurements using the instruments available with the facilitator. They have proposed establishment of an instrument bank in the Rice Miller’s Association to periodically measure power, temperature, air flow, %CO2 at the rice mills.

b) Training and maintaining a base for skilled maintenance technicians, electricians etc. at Nizamabad.

c) The Rice Millers’ Association being strong, this will be used to display WMC Newsletter of NPC and other information.

d) Scientific temperament

has already been promoted by the concept of WMC.

5. Constraints

Apart from oft repeated constraints of Small and Medium level Enterprises (SMEs) viz. single owner to look after all activities, lack of qualified technical personnel etc, the following are the major constraints identified:

• Financing for WM options.The WMC members while appreciating the benefits of a better boiler, electricals etc., might invest on it only when it is absolutely essential. Otherwise in order to allocate finances for day to day requirements, the WM options may get overlooked. Financing through Performance Contracting approach is desired. While funds are available earmarked for energy conservation by IREDA, technology upgradation by SIDBI and

State F inanc ia l Corporations (SFCs), they may be skeptical in funding rice mills, which are either proprietary or partnership companies. The rice millers use bank finance for their working capital needs. For capital investments they source funds from their own resources.

• The case of Aishwarya Industries needs a special mention as the rice mill owner has invested on expansion using the

46

guidelines of WMC meetings. Other WMC members also will follow suit when they opt for equipment

replacements. The availability of cheaper finance will accelerate this process.

• The need for Detailed Project Report and other documentation is another constraint in using the funds available with the Financial institutions. As a single person has to look after various other areas, the entrepreneur finds less time for interaction and preparation of documentation.

• They are skeptical about use of Consultancy Services thinking that such services are costly and the measures recommended involve investment(s). The benefit of use of Consultancy services has been well realised during the WMC meetings. It is hoped that the members would seek expert help on the subject whenever required.

• Some of the rice mills are on lease with the present occupier. Therefore the occupier is not in a position to invest on capital equipment.

• The other major constraint is sustaining WM options. Though the

WMC concept has increased a w a r e n e s s

a n d h a s m a d e entrepreneurs conscious of the subject, it is hoped that in course of time WM will sustain the interest of the rice miller’s and that other day to day production activities and compulsions would not allow WM to be relegated to the background. In order to make WM efforts stay in the forefront regular interaction between the facilitator and the WMC members is essential after completion of Stage VI of the milestone.

6. Conclusion

This article detailed the Waste Minimisation options of the rice milling industry for both raw rice and parboiled sectors. There are about 70 par boiling rice mills in Nizamabad. Most of them do have out dated boilers. If 50 mills replace existing boilers with more efficient boilers, the energy saved will be Rs. 125 lakhs. This reduces pollution to a great extent. Similarly about 100 kL of water per day can be

saved by better water management practices.

Hot WaterTank

12000 ltrs.

Hot WaterTank

12000 ltrs.

Fig. RICE MILLING PROCESS

P a d d y Reception

Cleaning & Storag e

P ar Boiling Section

Milling Section

Paddy Bin700 Qtls.

Open Steam Open Steam

Elevator 1HP5HP/5HP BlowerPre Cleaner

cum Destoner +2HP Paddy CleanerUnmatured Grains/Dust

1000Quintals

Paddy Bin

PaddyElevator

2HP

5HP

2 Pumps1 standby

AFrom

Paddy Bin

Elevator1HP

Sheller cumHusker 10HP

Husk to Yard

Blower3HP

Pre Paddy Dust

CondensateFrom HeatExchanger

SoakingTank I4T

SoakingTank I4T

SoakingTank I4T

SoakingTank I4T

SoakingTank I4T

SoakingTank I4T

Elevator1HP

Elevator

Use SameElevator

Cleaner Screen (not colle

cted) Du

st

(80

% collected

)

Water

TankPump 5HP

X

X

X

X X X

Open Steam

Conveyor 5HP

Bran Room

Blower

Rice

Separator 2HP (not used)

Paddy

Elevator3HP

Husk

Boiler32 x 8

Ash

Compressor

5HP

DustHot Air

Elevator10HP

Dryer24T

50o

C

Heat

Exchanger

Blower3HP

Elevator1HP

Elevator GermsPoultry

Cyclone

25HP

10T10T

10TB

Par Boiled

Condensate To Cone Polishing

Paddy Godown20HP - 2Nos.

8

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 suchas 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

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 year of operation.rdc) 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

5.96Perquisites @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% 4.50Interest 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 1008550.00

= 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 191.00Interest 150.00

40% of salary, wages, utility, contingency 854.76Insurance 48.00

——Total: 1243.76

10.7 Break even Point

= Annual Fixed Cost X 100

Annual Fixed Cost + Profit

= 1243.76x1001243.76+1291.09

= 49.06%

11.0ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS

Canara Engineering EnterprisesB-182, II stagePeenya Industrial Estate

Banglore – 560 058

G.G.Dandekar Machine Works (I) Ltd.DandekarwadiBhiwandi – 421302

Jaya & Co.Trichy RoadP.B. No. 1347Coimbatore – 641 018

Sidwin Machineries Ltd.No. 10, III StageIndustrial SuburbMysore – 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.

1

Land Utilisation Pattern (2000-2001)

Particulars of Area Krishna (in Hectres)

Nalgonda(in Hectres)

A) Forest Area

Misc, tree, permanent pasture, land put to non agricultural use, barren and uncultivable land.

Cultivable Waste

Current Fallow (04-05)

Other Fallow (04-05)

Net Area SOW

% of Forest Area of district to

state

152574

55000

20489

671

27392

193349

152574

80490

54000

15392

22

6119

348725

80490

666293 583200

B) Agricultural Land (04-05) Total Cultivated Land

High Land

Medium Land

Low Land

Average area covered in Khariff

(Paddy)

Approx. Paddy production in

Khariff.

Average area covered in Ravi

221412

124273

60759

36380

109704

19.24Qntl/

Hec

14058

354866

179437

89395

76034

2112093

22.28Qntl/

Hec

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

2

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

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

3

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 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

4

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:

The following data gathered from the cluster from various sources reveals that employment growth has been steadily increasing except in the year 2001-02.

5

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.

6

0

100200300

400500

600700800

9001000

RS IN CRORES

2000-01 2001-02 2002-03 2003-04 2004-05

YEAR

GROWTH OF RICE MILL CLUSTER ON THE BASIS OF TURNOVER

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

as below:

7

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.

A comphrensive status of the units of the cluster indicating investment, capacity &

employment is given below.

Sl. No.

Year No of units working

Production in Lac MT

Value in Crores

Installed capacity in Lac MT on single shift basis

Employment Nos.

Exports (Direct & indirect)

Investment in Machinery

Regu

lar

contr

act

1. 2001-

02

96 3.79 354.4

0

6.91 1920 4050 -- 76crore

s

2. 2002-

03

110 4.32 411.3

0

7.92 2200 3300 -- 88crore

s

3. 2003-

04

135 5.30 504.6

1

9.72 2700 4050 120Cro

rs

108

crores

4. 2004-

05

150 5.80 600.0

0

10.60 3000 4000 180cror

es

242cror

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

8

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.

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.

9

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 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

10

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 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-

11

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.

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.

12

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.

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.

13

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.

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

14

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.

15

1. Raw Rice/Parboiled Rice processing flow chart

16

Paddy

Cleaning

Mechanical drying

Shelling Unit

Soaking Steaming Sun drying

Cleaning Dehusking Separator

Paddy Broken rice

Polishing unit

Separator

Rice grader

Quality rice

Weighment and packing

Bran yard

Broken rice, smaller size rice & impurities

2. Process flow chart for exporting

17

Rice produced by common rice mill

Silky unit

De stoning unit

Colour Sorting Machine

Grading

Weighment and Packing

9. ANALYSIS OF VALUE CHAIN

Sl.No.

Process Flow Process cost/Value (in Rs./-qtl. Of rice)

Accumulated value

Remarks

1 Paddy (URS) 960 (URS: Under Relaxation System)

2 Transport 20 9803 Cleaning, loading, soaking,

drying, dehusking, polishing, grading, etc.

40 1020

4 Yeild(a)Raw rice @ 67% i.e. 67 kg.

cost of 100 kg raw rice(b)Parboiled rice @ 68% i.e 68

kg. parboiled rice 100 kg

A- raw riceB – Parboiled rice

1530.00(a)

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)

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Analysis of Value Chain( as per FAQ standard)

Process Flow Process Cost / Value (in Rs/qntl)

Accumulated value

Remarks

1. Paddy (Gd-A)2. Mktg. Fee 1%3. Cleaning loading,4. Misc. 1.5%5. Total 2.5%6. Drying7. Dehusking & polishing8. Grading9. Yield

a. Raw rice @ 67% i.e. 67kg.- Cost of 100 kg. raw rice

b. Parboiled rice @68% i.e 68kg

- Cost of 100 kg. parboiled rice

10. Custody & maint. Charges

11. Cost of gunny bags 2 nos.

12. Transportation

13. Sale price

14.Net profit

15.Sale of rice bran(7%) 16.Sale of husk (19%) 17.Overall gross profit

980.00

24.5018.0040.004.00

25.00

40.00

40.00

800.00100.00

980

1004.501022.501062.501066.50

1599.75(a)

1567.75(b)

1624.75 (a)1592.75(b)1664.75 (a)1632.75 (b)1704.75 (a)1672.75 (b)1950.00 (a)1900.00 (b)245.25(a)227.25(b)56.0019.00320.25 (a)302.25 (b)

(a)raw rice(b)boiled

riceCharges to be paid by CSC/agencies

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.

19

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

20

consuming. As a whole the cost of production is high for the

technology.

e) Credit Issues

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

21

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.

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

22

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 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.

23

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.

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.

24

APEDA Min. of Food Processing

Civil Supplies Deptt. CRRI

Engg. School & Colleges

ITI

Certification agencies

SISI & DICSIDBI & Banks

RMC/ MARKET YARDS

10 MT RICE MILL-1

8MT + 10 MT +SORTEX -10

6,4,3 & 2 MT RICE MILLS-1219

CENTRAL POOL/ AGENCY

EXPORT MARKET

DOMESTIC MARKET

FOFWARD

LINKAGE

BACKWARD

LINKAGE

Transporters Spare parts Suppliers Export Consultants Chartered accountant Labor Contractor

BDS PROVIDERSMaintenance & Job Work Providers

RAW MATERIAL SUPPLIERS

CORE FIRMS

16. PRESENT CLUSTER MAP

SUPPORT INSTITUTIONS

PACKING MATERIALS SUPPLIERS

FARMERS

25

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. No.

Parameter

Strength Weakness Opportunity Threat

1. Markets Market support available under levy/custome milling rice policy.

Most suitable climatic environment

All rice mills depend upon the levy supply taken up by FCI.

Tremendous national market is there. Institution

al support is available

All the units having sortex machine may be clubbed off for common brand and export

Strong competition from Asian Countries.

2 Technology

Low cost fabricated machines

Technological infrastructure available.

High production/ automatic plant very costly & mostly imported beyond reach of SSI sector.

Entrepreneur not aware of sources of low cost imported automatic plants and appropriate processing techniques.

Locally fabricated plant are

potential for productivity.

Cost reduction and quality enhancement by use of appropriate technology/QMS.

Traditional technology, standard and non-professional MS leading to high cost may retard the industry both at domestic / international market.

26

unstandardised & low productive.

3 Inputs availability

Local resource Controlled minimum support price(MSP) of paddy at compulsion of levy rice supply.

Large domestic /international market available

Potential for non-exporting unit to export

Available institutional support may be exploited.

Formation of consortium and making common brand for easy export.

* imposition of taxes and levies in comparison to neighbouring states may further lead to closure / shift of industries to neighbouring states..

4 Skills Traditional operators available

no skill upgradation training

Increased technical and managerial awareness and trainings may lead to productivity, quality and efficiency

Skill base needs upgradation to adopt latest technology and management systems.

5 Business environment

Ability of export segment to grow and meet international challenges.

Heavy taxes / levies and controlled trade has lead to closure / shift of events.

Tremendous growth potential with institutional support.

Imposition of taxes, levies in comparison to neighbouring states may taper down the industry.

18. Vision for the Cluster

27

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 hectare

Yield (kg/hectare)

% Coverage under irrigation(1995-96)

AP 3.5 2431 94.8Assam 2.49 1359 33.8Bihar 4.98 1362 40.2Gujarat 0.67 1550 55.6Haryana 0.91 2797 99.4J&K 0.28 1992 91.2Karnataka 1.38 2419 66.8Kerala 0.40 1636 49.9MP 5.40 831 23.7Maharashtra 1.48 1621 26.3Orissa 4.50 1380 35.5Punjab 2.28 3465 99.1

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Tamil Nadu 2.36 2987 92.0Uttar Pradesh 5.66 2148 62.3West Bengal 5.90 2243 27.2Others 1.23 -- --All-India 43.42 1895 50.1Source: Website of Ministry of Agriculture, Govt. of India Thus it would be evident from the table that while Andhra Pradesh stands 4th 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.


29

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:

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.


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

30

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% 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.


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.

31


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: 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.

32

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

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 Year1.

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 Year1.

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

33

.6.

web-site launching

7.


8.


3rd Year1.

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.


8.


34

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.

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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

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dehusked 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.

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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.

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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.

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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.

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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 less than that needed for the conventional processes. Of course, if

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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.

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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

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Paddy Rice or Brown Rice

Cleaning / Grading

Soaking

Steaming / Cooking

Pre-drying

Drying / Tempering

Parboiled Paddy or Brown Rice

■ Sound matured long grain paddy

■ Variety pure as possible

■ Bulk density higher than 550 g/l

■ High efficient cleaning and grading machinery

■ Removing of impurities

■ Preparing of uniform paddy fraction for parboiling

■ Batchwise soaking in open tanks

■ Special soaking time schedule

■ Constant water temperature

■ Minimized water consumption

■ Continuous steaming with steam cooker, for paddy and brown rice parboiling

■ Special feeding and discharging system

■ Highest flexibility by choosing different parboiling parameters

■ Hot air pre-drying with dryer

■ Constant temperature in the whole dryer

■ Temperature control system

■ Gentle column drying in passes

■ Temperature control for each pass

■ Typically parboiled rice, ready for milling

■ Uniform in colour

■ Completely gelatinized, without white bellies

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Documents

DPR for Par Boiled rice Industry