Professor Jayashankar Telangana State Agricultural University

Agricultural College Warangal

Challenging Task

COURSE:AGRI INDUSTRIAL ATTACHMENT

(Student ready programme )

Topic: Impact of lack of mechanization on profitability of rice mills

Date of submission : 12 – May -2020

Submitted by:
G. Soumith
CAWA-2016-038
Sri venkateshwara rice mill

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 Index
Introduction
Current situation of rice milling in India

Major problems faced by the industry

Problems in general

Problems faced by lack of machinery

 Problems in parboiling and drying
 Problems in by products

Some other problems in the rice mills

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SWOT analysis

Impact of lack of sufficient Mechanization on profitability of rice mill

Introduction:

India is a second largest producer of rice in the world after china. It contributes about 20%of rice
out put of whole world and 25%of market share in a global trade. Area covered by paddy as it is
a major cereal crop it occupies 42.3 million hectares and the production has been changing
drastically year by year.

Year Production
1980-1981 75.29MT
1990-1991 84.88MT
2000-2001 95.98MT
2011-2012 102.7MT
2019-2020 117.47MT
TABLE NO. 1

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Rice has been grown all the parts of the country but about 90%of rice have been growing in the
Andhra Pradesh, Telangana, Chhattisgarh, West Banga, Uttar Pradesh, Bihar, Orissa, Assam,
Madhya Pradesh, Punjab. Recently Telangana is considered as a rice bowl of India by (FAO
1965)

Rice production and milling industry is the oldest and the largest agro based industry of the
country The annual paddy production in India is 117.47MT per annum. There is a serious food
crisis in early 60’sdue to this the GOI highlighted the proper policy of food /rice processing
industry. Joint study made by GOI and FORD FOUNDATION OF INDIA, they have pointed
that additional yield is obtained through the modernization of the existing rice processing or
milling techniques. Many other organizations come with the same out come only. As a result
policy of modernization has been pursued by the GOI and all the other states with in it. As
industry are modernised and leads to main part of the economy of the country. But it is not
implemented successfully in many parts of the country. Though there is a high priority given to
the paddy production programmes and changing the pattern of demand of rice. Milling industry
is not developed in many areas, it has to adopt it self to the developing nation.

Rice milling in India has been carried out by the many small and medium sized rice mills. Small
sized one are mostly huller type of rice mills, sheller type of mills , sheller cum huller mills, and
modern mills. Huller mills are cheap and easy to operate but it is very in efficient in converting
the paddy inti the rice, recovery of rice is 60-68%and 10-25%of broken rice. Modern rice mills
are high in cost and difficult to operate but recovery is up to 68-72% of rice and 5-7%of broken
rice and gives the better quality of products. The noticeable fact is that modern rice mills give the
highest out come of rice and with least quality of broken rice and give better quality of by
products. Mainly huller mills gives out barn having lowest oil content as it having appreciable
amount of husk and broken rice. But the oil content in barn from the sheller and modern mills are
better in them.

Types of Rice Mills Number of Rice Mills

Huller Mills 78,309
Sheller mills 4856
Huller cum sheller mills 10,384

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 Modern mills 31,068
TABLE NO. 2

Total no of rice mills along state wise is given in table no 3.

Milling of rice

Current situation of rice milling in India:

As it is a oldest and the largest agro processing industry in India, at present it has a turn over of
25000 crore per annum over a 85000 MT of paddy every year. Lack of advanced technological
equipments causes the rice milling units in efficient in terms of energy, maintenance and
productivity results in high production costs there by decreasing in affordability of farmers to
grow the rice.

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MAJOR PROBLEMS FACED BY THE INDUSTRY :
When a country witnesses economic growth along with a situation of stable supply, we
see a shift in the customer preference. Their demand shifts from quantity to quality and security.
If we shift our focus on modern countries, we get to see that those nations are trying and
consolidating their rice milling operations into large milling facilities, whereas most of the small
and medium scale milling facilities are dying away.
This clearly proves that people over there are more critical of rice quality. This growing
consciousness in the rice milling market would ultimately lead to bigger, more sophisticated
machinery.

Developing countries, on the other hand, face a distinct challenge of sustained productivity. In
the business environment, sustained production comes across as the biggest challenge rice
milling
units face.

So, we get over this one of the most critical challenges, by streamlining and automating work
processes. This is the only way to enhance productivity and reach a stage of sustained
productivity.

Modern, automated rice milling machines not only have more reasonable designs but also have
higher milling efficiency. The quality of milling operations straightaway determines the rice
output’s quality, whiteness, milling degree, grain dimensions, etc. Using modern rice milling
technology can let the rice millers cater to the exact customer demand on quantity as well as
quality.

Today, most of the developing nations like India, China, Nigeria, owing to the low-entry barrier
and high profitability have grown swiftly. However, their lack of updated processing techniques
and rearward equipment is hindering the development of their country’s rice industry, as a
whole.

While the surge in population has created a demand for increasing the productivity, there have
been numerous cases of grain loss due to inefficient, obsolete milling equipment. Developing,
rice-producing nations are said to lose about 10% of their yield each year.

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Major problem identified is lack of advancement mechanization in sir venkateshwara rice
mill:
Nature: The lack of advancement in mechanization leads to reducing the yield of paddy then
income is reduced there by leads to huge losses of rice mills. It is very difficult to maintain them
in those situations. It is the major problem faced by the sir venkateshwara rice mill.
The lack mechanization leads to reduction in the income by the Miller.

The major problems faced by the industry are heterogeneity in the composition of rice milling industry.
Large variations are found in type, capacity, location, services rendered as well as in ownership of
different processing units. Consequently investment requirement, cost and return also vary over a wide
range. Heterogeneity in rice milling industry arise mainly from the widely varying economic activities
made available to private rice millers in different areas and sectors of the country. Another common
feature of rice milling industry is considered that its technical potential capacity is not fully utilized and
this is because of the seasonal concentration and spatial spread of paddy production coupled with the
existence of a number of diverse processing units competing with one another in supplying facilities. As
these small mills generally do not purchase and store paddy on their own, their operations tend to be
restricted to the paddy marketing season, and their installed capacity remained unutilized/underutilized
during the rest of the period of the year.

PROBLEMS FACED IN GENERAL :

It is estimated about 10 percent of paddy/rice is damaged and/or lost in processing, storage and transport
with the present methods and machinery. Sixty to eighty percent head yield is obtained with 10-25 broken
and admixture of bran and husk whereas with modern techniques, 68-72 percent head rice with 5-7
percent broken and better utilizable by-products. The estimated loss in terms of money due to ill rice
recovery and excess broken etc. with present methods would run into crore of rupees. Since paddy is the
staple food of practically all paddy growers and also it is seasonal with one harvest per year, there should
be some facility in storage which can be protected from various hazards like damage caused due to
spontaneous heating, damage by birds, rodents and insects.

It is estimated about 10 percent of paddy/rice is damaged and/or lost in processing, storage and transport
with the present methods and machinery. Sixty to eighty percent head yield is obtained with 10-25 broken
and admixture of bran and husk whereas with modern techniques, 68-72 percent head rice with 5-7
percent broken and better utilizable by-products. The estimated loss in terms of money due to ill rice
recovery and excess broken etc. with present methods would run into crore of rupees. Since paddy is the
staple food of practically all paddy growers and also it is seasonal with one harvest per year, there should

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be some facility in storage which can be protected from various hazards like damage caused due to
spontaneous heating, damage by birds, rodents and insects.

PROBLEMS IN PARBOILING AND DRYING :

Parboiling of paddy, a process of partial boiling or cooking prior to milling which imparts an extra
strength to the rice kernel so that it could withstand the milling stress and result in higher head yield. This
significant increase in the hardness of the kernel results due to gelatinization of the starch during
parboiling and the disrupted protein which expanded and occupied all the air spaces in the endosperm.

Research on food value of rice has shown that parboiled rice has more nutritive value than the raw rice
because of the migration of vitamins from outer layers of the rice kernel into the inner starchy endosperm
due to moisture heat treatment. Moreover, due to better milling quality, the losses of broken and fines into
the bran are reduced considerably in the milling process of parboiled rice, and hence, total rice outturn of
7273 percent (2-8 percent more than the raw rice) and whole rice outturn of 60-65 percent (20-30 percent
more than raw rice) are obtained. This is perhaps the easiest and cheapest method of attaining the self-
sufficiency in meeting the growing demand for rice.

Loss of rice due to inefficient drying method is also not insignificant. Sun drying is the most popular and
traditional method of drying. This method is completely dependent upon weather and it needs specially
constructed large floor area that restricts the capacity of a mill to a certain extent. Excessive losses will
occur due to scattering, birds, rodents etc. This can be improved by drying paddy in a mechanical dryer
using husk as burning fuel.

Parboiling unit of paddy

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PROBLEMS IN BY-PRODUCTS :

Bran obtained in milling is a part of the rice kernel and as such is quite rich in fat. Polished rice contains
0.3 percent fat whereas brown rice contains about 2.2 percent fat on a moisture free basis. Rice bran
contains 20 percent extractible but the bran produced in commercial mills usually contains 13-18 percent
extractible. The quantity of bran if totally extracted for the oil in it, is capable of producing 7.17 lakh
tonnes of edible rice bran oil. Thus, if this total potential is exploited, enough oil would be available to
curtail a major portion of the import of edible oils required to fill up the ever widening gap between the
demand and supply of edible oils in the country.

Rice husk is the largest by-product of rice milling industry which amounts to 22-24 percent of the total
paddy. The heating value of husk has been reported to be 30003500 Kcal/kg. Thus, husk can be used for
generating steam for parboiling paddy and as heat source mechanical dryers. Twenty kg of husk can
generate 60,000-70,000 Kcal which would be enough to reduce the moisture content of one tonne of
paddy from 20 to 14 percent. It can be used as fuel in domestic stoves and as a soil conditioner or a
diluents component in commercial mixed fertilizers. It can also be used as an abrasive material because of
its high silica content. Husk ash is used in glass industry for polishing. Rice husk can be directly used as a
loose insulating material in building and cold storage facilities. Success has been achieved in the use of
husk ash for manufacturing cement. Pure silicon which is used for making semiconductors is a very costly
material that can be obtained from rice husk. Boards and briquettes can also be produced from rice husk.

Therefore, there is an urgent need of modernizing the methods and machinery by new innovations and
popularizing the new innovations and the new techniques of paddy processing such as parboiling, drying,
milling, handling, storage, transport and by product utilization to reduce the substantial losses.

Husk Rice barn Rice barn oil

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Suggestions to over come the problem studied :
Good capital caring should be given by government in order to maintain rice mills efficiently.
Modern rice milling machines make the whole process of milling easier and efficient.
Legislative measures :
Rice milling industry (Regulation &Licensing) act now providing:
1. New rice mills should have to set up Will undertake the dehusking of paddy separately by
rubber roll sheller or centrifugal dehusker and should have the paddy separators and
cleaners in addition to polishers.
2. All the existing mills has to be modernized.
3. Promotional efforts has to be taken in the form of technical finance. Subsidy for
modernization and extension programmes training research and development.
Policy issues:
Government is Promoting rice production through a combination of supporting prices assuring
the procurement and subsidies on key inputs, the major proportion of input subsidy was given
rice. India’s major competitiveness in rice market befits from it’s low cost of production,
supportive government policies, but it is hindered by poor milling and storage infrastructure.
Currently now 50%of rice production is through modern milling ,40%is through conventional
method ,vand10%is done by hand stampling.
 Level of mechanization in milling industry has to be increased
 It should be modernized.
 Government should take lead to up lift the small and medium scale rice mills.
 Advancement in machinery leads to increase in more quantities of out put.
 More the out put more the profit gained.
 There by India will still raise in the production of rice.
 Even it is more hard to maintain such a sophisticated equipment but good technical
advise will over come it .
 Procurement of paddy should be increased .
 Area of rice mill should be extended in order to provide proper storage facilities.
 Good quality of by products such as rice barn and husk will add additional income to rice
mill.
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  Parboiling of paddy makes grain to resist over breakage there by reduction in quantity of
broken rice .

Level of mechanization

Country Mechanization level

Hp/ha

Japan 7

South Korea 4.11

China 4.10

India 2.22

Philippines 1.23

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Some other problems identified in sir venkateshwara rice mill:

 There are no proper procurements of paddy results in declined selling of rice.

 More the Maintenance cost is too high
 of broken rice are observed.
 Lack of storage facilities.
 Due to in efficiency of milling leads to reduction in market value.
 They had no awareness in the advancement of technology.
 Lack of technical knowledge and there is is no technical assistant.
 By all the above reasons the quantity and quality of out come is reducing .

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 TABLE NO. 3

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S. State Huller Sheller Huller cum Morden Total
No sheller
1 Andhra Pradesh and 5386 1387 3999 7763 18535
Telangana
2 Assam 931 1 2350 1363 4645
3 Bihar 4749 63 9 51 4872
4 Gujarat 2105 132 260 1095 3592
5 Haryana 1175 234 - 990 2399
6 Himachal Pradesh 1175 2 - 40 1217
7 Karnataka 8670 973 1697 10186 21526
8 Kerala 11872 4 12 1286 13174
9 Madhya Pradesh 3114 239 227 94 3674
10 Maharashtra 6133 389 897 2091 9510
11 Manipur 71 - 97 1 169
12 Meghalaya 85 - 8 - 93
13 Orissa 3050 34 220 674 3978
14 Punjab 4374 304 15 1988 6681
15 Rajasthan 236 108 6 - 350
16 Tamil Nadu 16690 74 311 1959 19034
17 Tripura 689 5 8 1 703
18 Uttar Pradesh 5707 562 150 1215 7634
19 West Bengal 1151 55 110 161 1477
20 Chandigarh 18 11 - 27 56
21 Dadra & N. Haveli 11 1 - 25 37
22 Delhi 48 - - 40 88
23 Goa, Daman & Diu 666 - 8 9 683
24 Pondicherry 203 8 - 9 220

ALL INDIA TOTAL 78309 4586 10384 31068 124347

TOTAL NO OF RICE MILLS IN INDIA

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 SWOT ANALYSIS ON ADVANCEMENT IN MACHINERY

Strength’s Weakness

 The work is completed easily with in less  Difficult to handle the equipment
time.  Lack of knowledge regarding advancement
 Efficiency in yielding product is high .
 More amount of yield us obtained.
 Quality and quantity of by product is also
high

Opportunity Threats

 Increase in the product in and yield  Capital is very high which was not affordable
 More income by the small and medium agro based
 Profits increased industries.

 Labour charges are reduced  Need of a technical assistant

 Maintenance cost is too high

Conclusions:

By the above information modernization of rice mill is the only solution to incur more profits.

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 Item
Sl. Single Huller Mill Modern Mill
No.

1 Capacity (tonnes per hour) 0.70 2.00

2 Units Required for West Bengal (Nos.) 6250 2188

3 a) Power Requirement (Horse power per huller/mill) 17 85

b) Power Requirement for West Bengal 106250* 185980

4 a) Labour Requirement (no. of labourers per huller/mill) 2 70

b) No. of Labourers Required for West Bengal 12500 153160

5 a) Rice Production (million tonnes) 4.55 4.90

b) Value of Rice (rupees in crore) 1365 14700

c) Husk-Bran Mixture Production (million tonnes) 2.55 Nil

d) Value of Husk-Bran Mixture (rupees in crore) 98 Nil

e) Pure Bran Production (million tonnes) Nil 0.42

f) Value of Pure Bran (rupees in crore) Nil 84

g) Husk Production (million tonnes) Nil 1.54

h) Value of Husk (rupees in crore) Nil 35.9

i) Broken and Fines Production (million tonnes) Nil 0.14

j) Value of Broken and Fines (rupees in crore) Nil 8.4

TOTAL INCOME GENERATION (rupees in crore) 1463 1598.3

Comparison in between the rice mills in India (TABLE NO.4)

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 Huller-sheller type of rice mill

Modern type of rice mill

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 Sri venkateshwara rice mill

Husk at the rice mill

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References:

 ICAR Journals on mechanisation of rice mills.

 TNAU agritech portal.
 Nextech solutions .
 https://www.changemakers.com .
 www.fao.org › Web results ,Grain losses in rice processing.
 https://www.termpaperwarehouse.com › Existing Problems About Rice Milling Machine
– Term Paper

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