Operations in a rice processing industry final report
A Project Report On
OPERATIONS IN A RICE PROCESSING INDUSTRY
KAMADHENU FOOD PROCESSING INDUSTRIES
B. Ravi Teja
ROLL NO: 131343
Under the Guidance of
Ms. Jayashree V
Post Graduate Diploma in Management
VIGNANA JYOTHI INSTITUTE OF MANAGEMENT
I hereby declare that this Project Report titled Operations in a Rice
Processing Industry submitted by me is a bonafide work
undertaken by me and it is not submitted to any other Institution or
university for the award of any degree/diploma certificate or
published any time before.
B. Ravi Teja
Name of the Student Signature of the
This is to certify that the Project Report titled Operations in a Rice
Processing Industry being submitted to Vignana Jyothi Institute of
Management is a bonafide work done B. Ravi Teja bearing roll no.
131343, under my guidance.
Date Signature of the Guide
Ms. Jayashree V
Table of Contents
CONTENTS PAGE NUMBERS
1. Agriculture in India 1
2. Agriculture in AP 10
3. Rice productionin India 11
4. Food processing Industry 14
5. Paddy 16
6. About the company 18
7. Objectives 19
8. Scopeof study 19
9. Operational activities 20
10. Office operations 24
11. Record maintenance 27
12. Files 28
13. Company statistics 29
14. Power supply 29
15. Conclusion 30
16. Suggestions 30
17. Marketing 31
Agriculture in India
Agriculture has a significant role in socio-economic fabric of India. Here Sikh farmers are
deploying a tractor and cane crusher to produce and distribute free cane juice on an Indian
festival. Several festivals relate to Agriculture in India. Holi - the festival of colours - is
celebrated across north India as the coming of spring. It is celebrated with bonfires,
meeting friends and strangers, playful painting each other with colours.
Agriculture in India has a significant history. Today, India ranks second worldwide in farm
output. Agriculture and allied sectors like forestry and fisheries accounted for 16.6% of the
GDP in 2009, about 50% of the total workforce. The economic contribution of agriculture
to India's GDP is steadily declining with the country's broad-based economic growth. Still,
agriculture is demographically the broadest economic sector and plays a significant role in
the overall socio-economic fabric of India.
As Per the 2010 FAO world agriculture statistics, India is the world's largest producer of
many fresh fruits and vegetables, milk, major spices, select fresh meats, select fibrous crops
such as jute, several staples such as millets and castor oil seed. India is the second largest
producer of wheat and rice, the world's major food staples. India is also the world's second
or third largest producer of several dry fruits, agriculture-based textile raw materials, roots
and tuber crops, pulses, farmed fish, eggs, coconut, sugarcane and numerous vegetables.
India ranked within the world's five largest producers of over 80% of agricultural produce
items, including many cash crops such as coffee and cotton, in 2010. India is also one of
the world's five largest producers of livestock and poultry meat, with one of the fastest
growth rates, as of 2011.
One report from 2008 claimed India's population is growing faster than its ability to
produce rice and wheat. Other recent studies claim India can easily feed its growing
population, plus produce wheat and rice for global exports, if it can reduce food staple
spoilage, improve its infrastructure and raise its farm productivity to those achieved by
other developing countries such as Brazil and China.
In fiscal year ending June 2011, with a normal monsoon season, Indian agriculture
accomplished an all-time record production of 85.9 million tonnes of wheat, a 6.4%
increase from a year earlier. Rice output in India also hit a new record at 95.3 million
tonnes, a 7% increase from the year earlier. Lentils and many other food staples production
also increased year over year. Indian farmers, thus produced about 71 kilograms of wheat
and 80 kilograms of rice for every member of Indian population in 2011. The per capita
supply of rice every year in India is now higher than the per capita consumption of rice
every year in Japan.
India exported around 2 million metric tonnes of wheat and 2.1 million metric tonnes of
rice in 2011 to Africa, Nepal, Bangladesh and other regions around the world.
Aquaculture and catch fishery is amongst the fastest growing industries in India. Between
1990 and 2010, Indian fish capture harvest doubled, while aquaculture harvest tripled. In
2008, India was the world's sixth largest producer of marine and freshwater capture
fisheries, and the second largest aquaculture farmed fish producer. India exported 600,000
metric tonnes of fish products to nearly half of all the world's countries.
India has shown a steady average nationwide annual increase in the kilograms produced per
hectare for various agricultural items, over the last 60 years. These gains have come mainly
from India's green revolution, improving road and power generation infrastructure,
knowledge of gains and reforms. Despite these recent accomplishments, agriculture in
India has the potential for major productivity and total output gains, because crop yields in
India are still just 30% to 60% of the best sustainable crop yields achievable in the farms of
developed as well as other developing countries. Additionally, losses after harvest due to
poor infrastructure and unorganised retail cause India to experience some of the highest
food losses in the world.
Indian agriculture since 1947
Over 50 years since its independence, India has made immense progress towards food
security. Indian population has tripled, but food-grain production more than quadrupled:
there has thus been substantial increase in available food-grain per capita.
Prior to the mid-1960s India relied on imports and food aid to meet domestic requirements.
However, two years of severe drought in 1965 and 1966 convinced India to reform its
agricultural policy, and that India could not rely on foreign aid and foreign imports for food
security. India adopted significant policy reforms focused on the goal of foodgrain self-
sufficiency. This ushered in India's Green Revolution. It began with the decision to adopt
superior yielding, disease resistant wheat varieties in combination with better farming
knowledge to improve productivity. The Indian state of Punjab led India's green revolution
and earned itself the distinction of being the country's bread basket.
The initial increase in production was centred on the irrigated areas of the Indian states of
Punjab, Haryana and western Uttar Pradesh. With both the farmers and the government
officials focusing on farm productivity and knowledge transfer, India's total foodgrain
production soared. A hectare of Indian wheat farms that produced an average of 0.8 tonnes
in 1948, produced 4.7 tonnes of wheat in 1975 from the same land. Such rapid growths in
farm productivity enabled India to become self-sufficient by the 1970s. It also empowered
the smallholder farmers to seek further means to increase food staples produced per
hectare. By 2000, Indian farms were adopting wheat varieties capable of yielding 6 tonnes
of wheat per hectare.
With agricultural policy success in wheat, India's Green Revolution technology spread to
rice. However, since irrigation infrastructure was very poor, Indian farmer innovated with
tube-wells, to harvest ground water. When gains from the new technology reached their
limits in the states of initial adoption, the technology spread in the 1970s and 1980s to the
states of eastern India — Bihar, Odisha and West Bengal. The lasting benefits of the
improved seeds and new technology extended principally to the irrigated areas which
account for about one-third of the harvested crop area. In the 1980s, Indian agriculture
policy shifted to "evolution of a production pattern in line with the demand pattern" leading
to a shift in emphasis to other agricultural commodities like oilseed, fruit and vegetables.
Farmers began adopting improved methods and technologies in dairying, fisheries and
livestock, and meeting the diversified food needs of India's growing population. As with
Rice, the lasting benefits of improved seeds and improved farming technologies now
largely depends on whether India develops infrastructure such as irrigation network, flood
control systems, reliable electricity production capacity, all season rural and urban
highways, cold storage to prevent food spoilage, modern retail, and competitive buyers of
produce from the Indian farmer. This is increasingly the focus of Indian agriculture policy.
India's agricultural economy is undergoing structural changes. Between 1970 and 2011, the
GDP share of agriculture has fallen from 43 to 16%. This isn't because of reduced
importance of agriculture, or a consequence of agricultural policy. This is largely because
of the rapid economic growth in services, industrial output, and non-agricultural sectors in
India between 2000 to 2010.
Agricultural scientist MS Swaminathan has played a vital role in the green revolution. Last
year (2013) NDTV awarded his 25 living legend of India for outstanding contribution to
agriculture and making India a food sovereign country.
Irrigation in India refers to the supply of water from Indian rivers, tanks, wells, canals and
other artificial projects for the purpose of cultivation and agricultural activities. In country
such as India, 64% of cultivated land is dependent on monsoons. The economic
significance of irrigation in India is namely, to reduce over dependence on monsoons,
advanced agricultural productivity, bringing more land under cultivation, reducing
instability in output levels, creation of job opportunities, electricity and transport facilities,
control of floods and prevention of droughts.
Indian agriculture is diverse, ranging from impoverished farm villages to developed farms
utilising modern agricultural technologies. This image shows a farming community in a
more prosperous part of India.
As of 2011, India had a large and diverse agricultural sector, accounting, on average, for
about 16% of GDP and 10% of export earnings. India's arable land area of 159.7 million
hectares (394.6 million acres) is the second largest in the world, after the United States. Its
gross irrigated crop area of 82.6 million hectares (215.6 million acres) is the largest in the
world. India is among the top three global producers of many crops, including wheat, rice,
pulses, cotton, peanuts, fruits and vegetables. Worldwide, as of 2011, India had the largest
herds of buffalo and cattle, is the largest producer of milk and has one of the largest and
fastest growing poultry industries.
The following table presents the twenty most important agricultural products in India, by
economic value, in 2009. Included in the table is the average productivity of India's farms
for each produce. For context and comparison, included is the average of the most
productive farms in the world and name of country where the most productive farms
existed in 2010. The table suggests India has large potential for further accomplishments
from productivity increases, in increased agricultural output and agricultural incomes. In
2009, India was the world's third largest producer of eggs, oranges, coconuts, tomatoes,
peas and beans. In addition to growth in total output, agriculture in India has shown an
increase in average agricultural output per hectare in last 60 years. The table below presents
average farm productivity in India over three farming years for some crops. Improving road
and power generation infrastructure, knowledge gains and reforms has allowed India to
increase farm productivity between 40% to 500% over 40 years. India's recent
accomplishments in crop yields while being impressive, are still just 30% to 60% of the
best crop yields achievable in the farms of developed as well as other developing countries.
Additionally, despite these gains in farm productivity, losses after harvest due to poor
infrastructure and unorganised retail cause India to experience some of the highest food
losses in the world.
India and China are competing to establish the world record on rice yields. Yuan Longping
of China National Hybrid Rice Research and Development Centre, China, set a world
record for rice yield in 2010 at 19 tonnes per hectare in a demonstration plot. In 2011, this
record was surpassed by an Indian farmer, Sumant Kumar, with 22.4 tonnes per hectare in
Bihar, also in a demonstration plot. Both these farmers claim to have employed newly
developed rice breeds and System of Rice Intensification (SRI), a recent innovation in rice
farming. The claimed Chinese and Indian yields have yet to be demonstrated on 7 hectare
farm lots and that these are reproducible over two consecutive years on the same farm.
A rural market in India - farmers with limited marketing options sell their surplus produce
India lacks cold storage, food packaging as well as safe and efficient rural transport system.
This causes one of the world's highest food spoilage rates, particularly during Indian
monsoons and other adverse weather conditions. Food travels to the Indian consumer
through a slow and inefficient chain of traders. Indian consumers buy agricultural produce
in suburban markets known as 'sabzi mandi' such as one shown or from roadside vendors.
Indian agriculture includes a mix of traditional to modern farming techniques. In some
parts of India, traditional use of cattle to plough farms remains in use. Traditional farms
have some of the lowest per capita productivities and farmer incomes.
"Slow agricultural growth is a concern for policymakers as some two-thirds of India’s
people depend on rural employment for a living. Current agricultural practices are neither
economically nor environmentally sustainable and India's yields for many agricultural
commodities are low. Poorly maintained irrigation systems and almost universal lack of
good extension services are among the factors responsible. Farmers' access to markets is
hampered by poor roads, rudimentary market infrastructure, and excessive regulation."
—World Bank: "India Country Overview 2008"
"With a population of just over 1.2 billion, India is the world’s largest democracy. In the
past decade, the country has witnessed accelerated economic growth, emerged as a global
player with the world’s fourth largest economy in purchasing power parity terms, and made
progress towards achieving most of the Millennium Development Goals. India’s integration
into the global economy has been accompanied by impressive economic growth that has
brought significant economic and social benefits to the country. Nevertheless, disparities in
income and human development are on the rise. Preliminary estimates suggest that in 2009-
10 the combined all India poverty rate was 32 % compared to 37 % in 2004-05. Going
forward, it will be essential for India to build a productive, competitive, and diversified
agricultural sector and facilitate rural, non-farm entrepreneurship and employment.
Encouraging policies that promote competition in agricultural marketing will ensure that
farmers receive better prices."
—World Bank: "India Country Overview 2011"
A 2003 analysis of India’s agricultural growth from 1970 to 2001 by the Food and
Agriculture Organisation identified systemic problems in Indian agriculture. For food
staples, the annual growth rate in production during the six-year segments 1970-76, 1976–
82, 1982–88, 1988–1994, 1994-2000 were found to be respectively 2.5, 2.5, 3.0, 2.6, and
1.8% per annum. Corresponding analyses for the index of total agricultural production
show a similar pattern, with the growth rate for 1994-2000 attaining only 1.5% per annum.
India has very poor rural roads affecting timely supply of inputs and timely transfer of
outputs from Indian farms. Irrigation systems are inadequate leading to crop failures in
some parts of the country because of lack of water. In other areas regional floods, poor seed
quality and inefficient farming practices, lack of cold storage and harvest spoilage cause
over 30% of farmer's produce going to waste, lack of organised retail and competing buyers
thereby limiting Indian farmer's ability to sell the surplus and commercial crops.
The Indian farmer receives just 10 to 23% of the price the Indian consumer pays for exactly
the same produce, the difference going to losses, inefficiencies and middlemen. Farmers in
developed economies of Europe and the United States, in contrast, receive 64 to 81%.
Although India has attained self-sufficiency in food staples, the productivity of Indian
farms is below that of Brazil, the United States, France and other nations. Indian wheat
farms, for example, produce about a third of the wheat per hectare per year compared to
farms in France. Rice productivity in India was less than half that of China. Other staples
productivity in India is similarly low. Indian total factor productivity growth remains below
2% per annum; in contrast, China's total factor productivity growths is about 6% per
annum, even though China also has smallholding farmers. Several studies suggest India
could eradicate hunger and malnutrition within India, and be a major source of food for the
world by achieving productivity comparable with other countries.
By contrast Indian farms in some regions post the best yields, for sugarcane, cassava and
Yields for various crops vary significantly between Indian states. Some Indian states
produce two to three times more grain per acre than in other Indian states. The table
compares the statewide average yields for a few major agricultural crops within India, for
Crop yields for some farms within India are within 90% of the best achieved yields by
farms in developed countries such as the United States and in European Union. No single
state of India is best in every crop. Tamil Nadu achieved highest yields in rice and
sugarcane, Haryana in wheat and coarse grains, Karnataka in cotton, Bihar in pulses, while
other states do well in horticulture, aquaculture, flower and fruit plantations. These
differences in agricultural productivity within India are a function of local infrastructure,
soil quality, micro-climates, local resources, farmer knowledge and innovations.
The Indian food distribution system is highly inefficient. Movement of agricultural produce
within India is heavily regulated, with inter-state and even inter-district restrictions on
marketing and movement of agricultural goods.
One study suggests Indian agricultural policy should best focus on improving rural
infrastructure primarily in the form of irrigation and flood control infrastructure, knowledge
transfer of better yielding and more disease resistant seeds. Additionally, cold storage,
hygienic food packaging and efficient modern retail to reduce waste can improve output
and rural incomes.
The low productivity in India is a result of the following factors:
The average size of land holdings is very small (less than 2 hectares) and is subject
to fragmentation due to land ceiling acts, and in some cases, family disputes. Such
small holdings are often over-manned, resulting in disguised unemployment and
low productivity of labour. Some reports claim smallholder farming may not be
cause of poor productivity, since the productivity is higher in China and many
developing economies even though China smallholder farmers constitute over 97%
of its farming population. Chinese smallholder farmer is able to rent his land to
larger farmers, China's organised retail and extensive Chinese highways are able to
provide the incentive and infrastructure necessary to its farmers for sharp increases
in farm productivity.
Adoption of modern agricultural practices and use of technology is inadequate,
hampered by ignorance of such practices, high costs and impracticality in the case
of small land holdings.
According to the World Bank, Indian Branch: Priorities for Agriculture and Rural
Development", India's large agricultural subsidies are hampering productivity-
enhancing investment. Overregulation of agriculture has increased costs, price risks
and uncertainty. Government intervenes in labour, land, and credit markets. India
has inadequate infrastructure and services. World Bank also says that the allocation
of water is inefficient, unsustainable and inequitable. The irrigation infrastructure is
deteriorating. The overuse of water is currently being covered by over pumping
aquifers, but as these are falling by foot of groundwater each year, this is a limited
resource. The Intergovernmental Panel on Climate Change released a report that
food security may be a big problem in the region post 2030.
Illiteracy, general socio-economic backwardness, slow progress in implementing
land reforms and inadequate or inefficient finance and marketing services for farm
Inconsistent government policy. Agricultural subsidies and taxes often changed
without notice for short term political ends.
Irrigation facilities are inadequate, as revealed by the fact that only 52.6% of the
land was irrigated in 2003–04, which result in farmers still being dependent on
rainfall, specifically the Monsoon season. A good monsoon results in a robust
growth for the economy as a whole, while a poor monsoon leads to a sluggish
growth. Farm credit is regulated by NABARD, which is the statutory apex agent for
rural development in the subcontinent. At the same time overpumping made
possible by subsidised electric power is leading to an alarming drop in aquifer
Agriculture in AP
Economy of the state is mainly based on Agriculture and Livestock. Andhra Pradesh is an
exporter of many agricultural products and is also known as Rice Bowl of India. Four
important rivers of India, the Godavari, Krishna, Penna, and Thungabhadra flow through
the state, providing irrigation. Agriculture is the main occupation and 60 percent of
population is engaged in agriculture and related activities. Rice is the major food crop and
staple food of the state.
Besides rice, farmers of this state also grow wheat, jowar, bajra, maize, minor millet, coarse
grain, many varieties of pulses, oil seeds, sugarcane, cotton, Chili pepper, mango nuts and
tobacco. Recently, crops used for vegetable oil production such as sunflower and peanuts
have gained favour. There are many multi-state irrigation projects in development,
including Godavari River Basin Irrigation Projects and Nagarjuna Sagar Dam.
Livestock is also another profitable business which involves, rearing of cattle in an enclosed
area for commercial purposes.
Fisheries contribute 10% of total fish and over 70% of the shrimp production of India. The
geographical location of the state allows marine fishing as well as inland fish production.
Marine exports from the state mainly comprises the 'Vannamei' shrimp and are expected to
cross $1 billion in 2013-14.
Rice production in India
Rice production in India is an important part of the national economy.
India is one of the world's largest producers of white rice and brown rice, accounting for
20% of all world rice production. Rice is India's pre-eminent crop, and is the staple food of
the people of the eastern and southern parts of the country. Production increased from 53.6
million tons in FY 1980 to 74.6 million tons in FY 1990, a 39 percent increase over the
decade. By FY 1992, rice production had reached 111 million tons, second in the world
only to China with its 182 million tons. Since 1950 the increase has been more than 350
percent. Most of this increase was the result of an increase in yields; the number of hectares
increased only 40 percent during this period. Yields increased from 1,336 kilograms per
hectare in FY 1980 to 1,751 kilograms per hectare in FY 1990. The per-hectare yield
increased more than 262 percent between 1950 and 1992.
The country's rice production declined to 89.13 million tonnes in 2009-10 crop year (July–
June) from record 99.18 million tonnes in the previous year due to severe drought that
affected almost half of the country.India could achieve a record rice production of 100
million tonnes in 2010-11 crop year on the back of better monsoon this year. The India's
rice production reached to a record high of 104.32 million tonnes in 2011-2012 crop
Rice is one of the chief grains of India. Moreover, this country has the biggest 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 degree 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.
Rice can be cultivated by different methods based on the type of region. But in India, the
traditional methods are still in use for harvesting rice. The fields are initially ploughed and
then fertiliser is applied which typically consists of cow dung and then the field is
smoothed. The seeds are transplanted by hand and then through proper irrigation, the seeds
are cultivated. Rice grows on a variety of soils like silts, loams and gravels. It can also
tolerate alkaline as well as acid soils. However, clayey loam is well suited to the raising of
this crop. Actually the clayey soil can be easily converted into mud in which rice seedlings
can be transplanted easily. Proper care has to be taken as this crop thrives if the soil
remains wet and is under water during its growing years. Rice fields should be level and
should have low mud walls for retaining water. In the plain areas, excess rainwater is
allowed to inundate the rice fields and flow slowly. Rice raised in the well watered lowland
areas is known as lowland or wet rice. In the hilly areas, slopes are cut into terraces for the
cultivation of rice. Thus, the rice grown in the hilly areas is known as dry or upland rice.
Interestingly, per hectare yield of upland rice is comparatively less than that of the wet rice.
The regions cultivating this crop in India is distinguished as the western coastal strip, the
eastern coastal strip, covering all the primary deltas, Assam plains and surrounding low
hills, foothills and Terai region- along the Himalayas and states like West Bengal, Bihar,
eastern Uttar Pradesh, eastern Madhya Pradesh, northern Andhra Pradesh and Orissa. India,
being a land of eternal growing season, and the deltas of Kaveri River, Krishna River,
Godavari River and Mahanadi River with a thick set-up of canal irrigation, permits farmers
to raise two, and in some pockets, even three crops a year. Irrigation has made even three
crops a year possible. Irrigation has made it feasible even for Punjab and Haryana, known
for their baked climate, to grow rice. They even export their excess to other states. Punjab
and Haryana grow prized rice for export purposes. The hilly terraced fields from Kashmir
to Assam are idyllically suited for rice farming, with age-old hill irrigational conveniences.
High yielding kinds, enhanced planting methods, promised irrigation water supply and
mounting use of fertilizers have together led to beneficial and quick results. It is the rain
fed area that cuts down average yields per hectare.
In some of the states like West Bengal, Assam and Orissa two crops of rice are raised in a
year. Winter season in the north western India are extremely cold for rice. Rice is
considered as the master crop of coastal India and in some regions of the eastern India
where during the summer monsoon rainy season both high temperature and heavy rainfall
provide ideal conditions for the cultivation of rice. Almost all parts of India are suitable for
raising rice during the summer season provided that the water is available. Thus, rice is also
raised even in those parts of western Uttar Pradesh, Punjab and Haryana where low level
areas are waterlogged during the summer monsoon rainy season.
Winter rice crop is a long duration crop and summer rice crop is a short duration crop. At
some places in the eastern and southern parts of India, rice crop of short duration is
followed by the rice crop of long duration. Winter rice crop is raised preferably in low
lying areas that remain flooded mainly during the rainy season. Autumn rice is raised in
Uttar Pradesh, Maharashtra, Rajasthan, Madhya Pradesh, Punjab and Himachal Pradesh.
Summer, autumn and winter rice crops are raised in West Bengal, Andhra Pradesh, Assam
and Orissa. Summer rice crop is raised on a small scale and on a small area. However,
winter rice crop is actually the leading rice crop accounting for a major portion of the total
Hectare under rice in all seasons in the country. Moreover in the last few years, several
steps in order to augment yield per hectare were taken up very seriously at all levels.Wheat
is a rabbi crop in this country. India ranks fourth in the production of wheat in the world.
Favorable Geographical Condition for Wheat Cultivation: In India, wheat is a winter crop.
Wheat requires a moderate cool climate with moderate rain. In India, it is grown in winter.
It needs temperature 10 degree C to 15 degree C for its cultivation. It thrives well in an
average temperature of 16-degree C. Warm and sunny weather is essential at the time of
ripening. Wheat requires a rainfall of 50 cm to 100 cm during the growing season. Too
much rain is injurious to the plant. On irrigated lands, a rainfall of 40 cm to 50 cm is
sufficient. Light rainfall and cloudiness before the grain ripens increase the productivity.
Alluvial level plains are ideal for wheat cultivation. Slightly rolling plains are also suitable.
Plains should be well drained so that water cannot stand there. Wheat requires fertile
alluvial soil. Clay loamy soils or even black cotton soils are suitable. Soil should retain
moisture. A certain amount of lime in the soil is beneficial. Labor factors are not as
important in the wheat cultivation as in the case of rice. However, labor is essential for the
cultivation. The other requirements of wheat cultivation include (i) irrigation, (ii) high
yielding varieties of seeds and (iii) capitals
Food Processing Industry
Agriculture is the process of producing food, feeding products, fiber and other desired
products by the cultivation of certain plants and the raising of domesticated animals
(livestock). The practice of agriculture is also known as "farming". Scientists, inventors and
others devoted to improving farming methods and implements are also said to be engaged
in agriculture. More people in the world are involved in agriculture as their primary
economic activity than in any other, yet it only accounts for twenty percent of the world's
Gross Domestic Product (GDP).
Food processing Food processing includes the methods and techniques used to transform
raw ingredients into food for human consumption. Food processing takes clean, harvested
or slaughtered and butchered components and uses them to produce marketable food
products. There are several different ways in which food can be produced.
One Off Production: This method is used when customers make an order for something to
be made to their own specifications, for example a wedding cake. The making of One Off
Products could take days depending on how intricate the design is and also the ability of the
Batch Production: This method is used when the size of the market for a product is not
clear, and where there is a range within a product line. A certain number of the same goods
will be produced to make up a batch or run, for example a bakery may bake a limited
number of specific baked good. This method involves estimating the number of customers
that will want to buy that product.
Mass production: This method is used when there is a mass market for a large number of
identical products, for example chocolate bars, ready meals and canned food. The product
passes from one stage of production to another along a production line.
Just In Time: This method of production is mainly used in restaurants, sandwich
delicatessens, pizzerias, and sushi bars. All the components of the product are available in-
house and the customer chooses what they want in their product. It is then prepared with
fresh ingredients in front of the buyer.
Food industry technologies
Modern food production is defined by sophisticated technologies. These include many
areas. Agricultural machinery, originally led by the tractor, has practically eliminated
human labor in many areas of production. Biotechnology is driving much change, in areas
as diverse as agrochemicals, plant breeding and food processing. Many other types of
technology are also involved, to the point where it is hard to find an area that does not have
a direct impact on the food industry. Computer technology is also a central force, with
computer networks and specialized software providing the support infrastructure to allow
global movement of the myriad components involved.
A paddy field is a flooded parcel of arable land used for growing semiaquatic rice. Paddy
cultivation should not be confused with cultivation of deep water rice, which is grown in
flooded conditions with water more than 50 cm (20 in) deep for at least a month. Genetic
evidence published in the Proceedings of the National Academy of Sciences of the United
States of America (PNAS) shows that all forms of paddy rice, both indica and japonica,
spring from a single domestication of the wild rice Oryza rufipogon that occurred 8,200–
13,500 years ago in China. Paddy fields are the typical feature of rice farming in east, south
and southeast Asia. Paddies can be built into steep hillsides as terraces and adjacent to
depressed or steeply sloped features such as rivers or marshes. They can require a great
deal of labor and materials to create, and need large quantities of water for irrigation. Oxen
and water buffalo, adapted for life in wetlands, are important working animals used
extensively in paddy field farming.
During the twentieth century, paddy field farming became the dominant form of growing
rice. Hill tribes of Thailand still cultivate dry-soil varieties called upland rice. Paddy field
farming is practiced in Cambodia, Bangladesh, China, Taiwan, India, Indonesia, Iran,
Japan, North Korea, South Korea, Malaysia, Myanmar, Nepal, Pakistan, the Philippines,
Sri Lanka, Thailand, Vietnam, and Laos, as well as Piedmont in Italy, the Camargue in
France, the Artibonite Valley in Haiti, and Sacramento Valley in California. Paddy fields
are a major source of atmospheric methane and have been estimated to contribute in the
range of 50 to 100 million tonnes of the gas per annum while yielding an estimated tonnes
of agricultural products per annum. Recent studies have shown that this can be significantly
reduced while also boosting crop yield by draining the paddies to allow the soil to aerate to
interrupt methane production. Studies have also shown the variability in assessment of
methane emission using local, regional and global factors and calling for better
inventorisation based on micro level data.
The word "paddy" is derived from the Malay word padi, rice plant.
India has the largest paddy output in the world and is also the fourth largest exporter of rice
in the world. In India, West Bengal is the largest rice producing state. Paddy fields are a
common sight throughout India, both in the northern gangetic plains and the southern
peninsular plateaus. Paddy is cultivated at least twice a year in most parts of India, the two
seasons being known as Rabi and Kharif respectively. The former cultivation is dependent
on irrigation, while the latter depends on Monsoon. The paddy cultivation plays a major
role in socio-cultural life of rural India. Many festivals such as Onam in Kerala, Bihu in
Assam, Sankranthi in Andhra Pradesh, Thai Pongal In Tamil Nadu, Makar Sankranti in
Karnataka, Nabanna in West Bengal celebrates harvest of Paddy. Kaveri delta region of
Thanjavur is historically known as the rice bowl of Tamil Nadu and Kuttanadu is called the
rice bowl of Kerala.
About the company:
Kamadhenu Food Processing Industries (KFPI) is a export quality oriented rice mill located
in Rudrur village in Nizamabad district. Venkatesh Bachu is the Managing Director of the
company. The capacity of the factory is 110 tons/day. The machinery of the factory are of
brands like SATAKE, MILLTECH, BUHLER, HALLMARK, INDIANA, ATLAS
COPCO. The company deals with various types of rice like BPT, HMT, JSR, 1010, Rupali,
Ganga Kaveri, Godavari. The company purchase paddy from Farmers and Dealers and sells
rice to rice shops, super markets, hotels, hostels, retail stores, distributors, exporters and
Government. The stock and machinery is hypothecated to Andhra Bank. It’s a B2B
business. Rice is a perishable good. The company does direct exports by forming a clusters
with other companies. The company supplies RO drinking water as a CSR activity.
Main product the company sells are Rice 1st quality and 2nd quality, broken rice, bran.
The byproducts are small broken, param, husk, ash.
The company sells rice through brands like HAPPY rice, Khushi rice, AMMA brand.
The main objective of this internship project was
To supervise the various operational activities in the rice processing unit. This basically
starts from the time the company takes an order and work is done to meet the deadline. As
soon as the company receives an order the company starts the process by taking the
required amount of paddy and allocate proper schedule on the machinery to undergo
To study the rice production in India.
To analyze the production process for reduction in cost of operations.
To prepare 4 P’s, SWOT, PESTLE for KFPI.
Scope of study:
The operational activities involved in a rice processing Industry starting from consumption
of paddy to supply of rice which include factory operations and office operations.
Step 1: Purchases paddy from farmers and agents after analyzing the sample.
Step 2: The employees do test milling for the procured samples. The employees do
analysis for moisture content and broken content in the lab.
Step 3: Placing the purchase order and provide gunny bags if the quality of the paddy is as
per our requirements.
Step 4: Farmers bring paddy through trucks. Re sampling and re analysis is done again to
confirm the overall quality of the paddy and decision whether to accept the goods or reject
it. The gross weight of the truck is taken by using weighting bridge. Now the decision is
made to unload in pit or store In the warehouse. Different quality of the paddy is placed
Step 5: Depending upon the demand and order, the processing takes place.
Step 6: If the broken content is high, the paddy is boiled in the plant and then the
processing takes place.
1. Paddy is dumped into one of the unloading tanks U1, U2, U3 or U4 (100 tons each)
2. PRE CLEANER: dust, grass are removed from paddy.
3. Then into binny tanks.
4. Then into soaking tanks. Soaking is done to change the color of rice.
If the paddy is boiled with water, rice will become brown. It takes 8hours.
If paddy is soaked with steam, rice will become cream color. It takes 40 minutes to
5. Then into dryers. For boiled, it takes 10 hours and for steam it takes 1 hour.
All the above are two in number and are 70 tons and 40 tons respectively.
The steam is generated in boiler section which is used in the above process
6. Then it goes to paddy tank P1, P2, P3, P4, P5. capacity is 200 tons/tank.
Now the milling process starts.
7. PRE CLEANER: dust, grass, stones are removed from paddy.
8. DESTONER: stones are removed. This machine is SATAKE brand.
9. RUBBER SHELLER: removes husk from paddy grains. This machine is SATAKE
10. SEPERATOR: separates rice. This machine is MILLTECH brand.
11. SIZER: separates different sizes of rice.
12. WHITENER 1 (VTA1) : polishes the brown rice. Capacity 8tons/hour. This machine is
Whitener 2 (VTA2) : polishes. Capacity 8tons/hour.
Whitener 3 (VTA3) : polishes. Capacity 8tons/hour.
Bran is formed as by product. Bran is sent to BB10 blower and param is separated.
13. SHIFTER: seperates small broken rice. This machine is SATAKE brand.
14. TEMPORING TANKS: stores and cools the warm rice. T1, T2, T3. Capacity: 30
tons/tank. This machine is SATAKE brand.
15. SILKY 1 and silky 2: for shining. Done with water and air. Capacity: 8tons/hour. This
machine is SATAKE brand.
Bran is formed as by product. Bran is sent to BB8 blower and param is separated.
16. THIN GRADER: seperates small broken.
17. SORTEX: seperates discoloured, damaged and immature rice from silky rice. A/C
room is required for this machine. This machine is BUHLER brand.
Sortex rejected rice is resortexed again and 2nd quality rice is separated.
18. GRADER: There are 6 graders which seperates full grain rice and broken rice. This
machine is HALLMARK brand.
19. RICE TANK: R1, R2, R3, R4.
a) R1 and R2: 70 tons capacity
b) R3 and R4: 35 tons capacity
20. BAG FILLING MACHINE is of INDIANA brand.
21. PACKING and loading into the truck. The gross weight is noted.
22. AIR COMPRESSOR: this machine is used for rubber sheller, whitener, silky, sortex
machines. This machine is of ATLAS COPCO brand.
Govt farmers brokers
Purchases & Negotiations:
The company’s main raw materials to purchase is paddy. The company have to buy at MSP
(Minimum Support Price).
Now MSP is Rs.1345/Quintal. The company maintains all details of purchases and sales in
The company submits purchase vouchers in Collector office. They give permission to
supply to FCI.
Once the company supplies to FCI, collector office gives PERMITS out of which 50% are
local and 50% are Out of state. The company sells rice through brokers.
Purchasing from local: The Company have to pay market fees. The company can claim
Purchasing from other state: The company have to give CST waybill.
While selling products with in the state, the company have to issue 5 documents.
1) Permit. (not required for corporation areas)
2) VAT receipt (5%)
3) Market receipt
4) Insurance (Oriental Insurance)
While selling products Out of state, the company have to issue 5 documents.
2) CST waybill (2%)
3) Market receipt
While sending to FCI, only waybill and FCI bill are required.
For exporting, the compnay have to issue
3) Market receipt
The company sells bran to solvents where they make oil from it.
The company sells small broken to distilleries and poultry.
The company sells husk to brick makers and power plants.
The company sells ash to brick makers.
Weight bridge calculations:
Gross > lorry with load
- Tare >empty lorry
= Net >weight of load
Relations with Government departments:
1) Collector office
2) Sales tax office
3) Agriculture market committee
4) Inspector of factories
5) Pollution control board
6) Food Corporation of India
The company does all transactions through Andhra bank, Bodhan branch.
The company does transactions with government through SBH.
Way bill book
Market permit book
DC Delevery Challan book
LF Lorry Freight
Paddy purchase report
Attendance & salaries
Weights and measurements
FCI cut reports file
Paddy bills file
Insurance(machinery, labour and others)
PF Provident Fund
Small scale industries
Stock & bardan
1. Warehouse Capacity: 8,000 tons of paddy. 40,000 Square yards.
2. Overall production output (per day): 100 tons/24 hours.
3. Finished goods inventory capacity: 500 tons.
4. Number of employees: 50 fixed and 50 daily wage basis.
Power is supplied from transform to PCC room. From there it has direct connection supply
to pre cleaners, boiler, driers, mill, lighting. We get 1100 kv from sub station. And stepped
down to 400-700 volts 3phase.The power consumption for mill is 800 amps and for boiler
plant is 500 amps.Generator is of CATERPILLAR brand and its capacity is 400 amps but
we use 250 amps.
RO plant: it purifies water. Its capacity is 4500 lts. It is of UNIC CHEM TECHNOLOGIES
Based on my study, I found that the following are the conclusion
1. Labor shortage: It can be concluded that the company faces severe shortage of skilled
labor who suits the work profile.
2. Logistics: It can be concluded that the company faces severe problem of logistics
because it is located in remote area.
3. Government policies: The company is facing challenges due to changes in government
4. Bull whip effect: The company is facing challenges regarding bull whip effect.
5. Biased sampling: The company is facing challenges due to biased sampling.
6. Machinery problems : The company is facing challenges due to machinery problems and
spare parts availability.
7. power cuts : The company is facing challenge of power cuts as it is located in rural area.
8. environmental problems : The company is facing challenge due to environmental
problems like late monsoons and heavy rains.
9. collection period : The company is facing financial problem due to late collection period
of sales stock.
10. not getting good quality paddy : The company is facing problem of not producing best
quality rice because of not procuring good quality paddy.
My Suggestions :
1. Cylos should be installed for which much labor are not required.
2. Own lorry’s and containers should be bought.
3. Rice millers association should propose a best policy to government.
4. Technically skilled mechanic should be employed.
5. Co-generation should be done.
6. Cash and carry kind of orders should be encouraged.
7. Support to farmers by providing best quality seeds, fertilizers, pesticides.
one of the oldest players in the market, brand
value, provides best quality, ample space,
financially strong, team work, latest machinery,
employees are highly skilled and knowledged,
staff quarters inside the organization.
Labor shortage, located in a remote area, power
silos, exports, retailing, online sales, backward
Political: change in
pollution control, water
competitive pricing, BEP
is high, inflation and
change in food prices.
Legal: policies regarding sales,
less tax if we sell in other states,
taxation and deductions.
RTGS transactions, use
Social: change in customer
Strengths: one of the oldest players in the market, brand value, provides best quality,
ample space, financially strong, team work, CSR activity, latest machinery, employees are
highly skilled and knowledged, staff quarters inside the organization.
Weakness: Labor shortage, located in a remote area, power cuts.
Opportunity: silos, exports, retailing, online sales, backward integration, re-generation.
Political: change in government policies.
Economical: MSP, competitive pricing, BEP is high, inflation and change in food prices.
Social: change in customer tastes.
Technological: machinery upgradation, RTGS transactions, use of ERP.
Legal: policies regarding sales, less tax if we sell in other states, taxation and deductions.
Environmental: rainfall, pollution control, water wastage.
Product: Rice 1st quality and 2nd quality, broken rice, bran.
ByProducts: small broken, param, husk, ash.
Price: market price, MSP government price, negotiable for bulk orders.
Place: factory located in Rudrur, Nizamabad Dist. Sales all over India and abroad.
Promotion: JustDial, IndiaMart, BigBasket.