About The Rice Industry
Globally, 90% production of rice is in Asia, and India is second largest producer
of rice. India has outperformed China in terms of exporting rice registering 22%
growth in 2017. The exports were boosted on account of flood hit in
neighbouring country Bangladesh, and in 2018 Sri Lanka and Bangladesh are
expected to remain the major rice export countries of India. Sella rice, an
indigenous variety of rice, accounted for most exported rice. Rice is the staple
food of people in eastern and southern India, and consumption of the total
produced milled (white) rice grew by 0.79% in 2017 and 3.43% in 2016. There
are 1000 of varieties of rice produced worldwide but in India white rice and
brown rice are the major varieties of rice produced. Of the aromatic type of rice,
India is also famous for basmati rice, but they don’t acquire major share in total
rice exports as compared to non-basmati rice. As agriculture in India is
monsoon based, the past 2 years experienced lower production of rice. But in
2017 the rice industry re-emerged and by 2018 it is expected to include African
nations in the export countries, which have been importing from Thailand. The
government of India heavily supports the rice producing farmers and the rice
mills, by providing seeds, fuel, funds and advanced machineries.
Goldstein Market Intelligence analyst forecast that the India rice industry is
expected to grow at CAGR of 2.0% over the forecast period. India rice
production was estimated at 110 million metric tons in 2017. The factors such
as government support in rice production, favourable monsoons, rising number
of rice processing companies, increasing exports are majorly impacting the
growth of India rice industry.
Rice is one of the chief grains of India. Moreover, this country has the largest
area under rice cultivation, as it is one of the principal food crops. It is in fact
the dominant crop of the country. India is one of the leading producers of this
crop. Rice is the basic food crop and being a tropical plant, it flourishes
comfortably in hot and humid climate. Rice is mainly grown in rain fed areas
that receive heavy annual rainfall. That is why it is fundamentally a kharif crop
in India. It demands temperature of around 25 degrees Celsius and above and
rainfall of more than 100 cm. Rice is also grown through irrigation in those
areas that receives comparatively less rainfall. Rice is the staple food of eastern
and southern parts of India. In 2009-10, total rice production in India amounted
to 89.13 million tonnes, which was much less than production of previous year,
99.18 million tonnes.
Analysis of Internal Environment
An internal analysis examines your organization’s internal environment in order
to assess its resources, competencies, and competitive advantages. Performing
an internal analysis allows you to identify the strengths and weaknesses of your
organization. This knowledge then aids the strategic decision making of
management while they carry out the strategy formulation and execution
process.
The meaning of the word environment is the surroundings or the area where an
activity takes place. Various events take place in an organisation, and several
employees work together to achieve a common goal. The environments also
influence the actions of management and employees. There are mainly two
types of environments, such as Internal environment and external environment,
which affect an organization.
Analysis Tool
SWOT ANALYSIS
Strength
Assured irrigation facilities
High farm power availability, cropping intensity and productivity
Manufacturing hub in the states
Good liaison with farm machinery manufacturing
Eagerness of farmers to adopt new technologies
Weaknesses
Stagnation in the crop yield
Lack of standardization and quality control of equipment’s
Lack of mechanization in horticultural, vegetable crops
Degradation of natural resources (soil, water and environment)
Opportunity
Global market for need/farm size based machinery/technology
Decrease inflow of migrant labour
Liberal policy of government regarding subsidy and employment
generation
Capacity building of scientists/ engineers/manufactures/farmers
Eco-friendly environment
Threats
Adequate exposure to farm machines
Poor quality of farm machines
Scarcity of farm labour
Climate change and Sustainability of agriculture
VALUE CHAIN ANALYSIS
Rice value chain focus on various value adding opportunities to ensure better
price as well as demand-supply equilibrium, various actors namely farmers,
village trader, wholesaler, rice millers always concerned about their fair price
besides improvement of rice quality. A series of value generating activities
associated with product marketing from farm level to the ultimate consumer is
referred to as value chain.
Mainly the value chain activities of rice are carrying paddy from field after
cutting, threshing, cleaning, bagging, storing, carrying to the markets, selling to
the traders, selling to the millers then millers convert paddy into rice
maintaining various quality and grading, rice millers are the starting actors in
milling, bagging, transporting to different market, then rice traders do the job of
selling to the ultimate consumer.
India’s rice value chain initiative emphasizes on the creation and strengthening
of both horizontal and vertical linkages of the chain. The government believes
that the development of rice value chain will increase competitiveness, increase
production, contribute to food security and address what past initiatives failed to
acknowledge - end markets and private sector actors. Lots of benefits are
documented in the literature to be associated with the development of rice value
chain.
