This document provides a diagnostic study of the rice milling cluster in Sambalpur and Bargarh districts of Orissa, India. It finds that the cluster contains around 150 rice milling units of varying sizes. The mills primarily operate seasonally from October to February to process locally grown paddy into rice. The study describes the production processes, supporting institutions, evolution of the cluster concept, and potential for modernization and value addition. It aims to understand the cluster's current status and opportunities for future development.

1. REPORT ON DIAGNOSTIC STUDY OF
RICE MILLING CLUSTER OF SAMBALPUR – BARGARH
DISTRICT
By
Epart Dharma Raju
&
Pitambar Parida
Cluster Development Agent
Deptt. Of Industry, Govt. of Orissa, Bhubaneswar
Prepared as a part of curriculum during training programme for Cluster
Development Agents (17-26th
Aug, 2005) at Bhubaneswar
Organised by
United Nations Industrial Development Organisation
Cluster Development Programme
&
Xavier Institute of Management, Bhubaneswar

2. RICE MILL CLUSTER OF SAMBALPUR AND BARGARH DISTRICT.
Introduction :
Sambalpur and Bargarh are the adjacent district having population of 9.29
Lakhs and 13.46 lakhs respectively. With commissioning of Hirakud Dam
Project, a green revolution started after 1960. as a result of which undivided
Sambalpur district i.e. mostly Sambalpur and Bargarh became rice bowl of
Orissa. 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
Sambalpur – Bargarh district.
Land Utilisation Pattern (2000-2001)
Particulars of Area Sambalpur
(in Hectres)
Bargarh
(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, Sambalpur)
2. Industry Scenario: -
a. World: In the international market Thailand, USA & UK have gone ahed
in rice production. These countries are basically producing short grain

3. non-basmati varieties. Besides Europe and UK also procure brown
Basmati Semi processed rice from India and finally process further as
per their requirements. The Milling Industries of these countries mainly
employ automatic advanced technology of processing, professionally
human resource and well managed organizations having concepts of
TQM, appropriate and modern technology and continuous R&D
activities. In non Basmati rice India faces top competition with Thailand,
Philipines and Vietnam whereas in Basmati rice India stands topmost in
the world as far as value structure is concerned.
b. India : - Rice milling units prevails mainly in the state like U.P.,
Uttaranchal, Punjab, Haryana, Orissa, W.B., A.P., Tamilnadu, Bihar,
Assam, Karnatak and Keral 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 benches 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.
stake 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 Sambalpur-Bargarh cluster have
installed colour sortex and silky plant. The paraboiled produced by these
units may compete in national and international market.
c. Cluster Details:- Sambalpur and Bargarh districts presently own 150
numbers of rice milling units. These are both SSI & large sector. Out of
which one is coming under large sector. The processing/milling capacity
of these units ranges from 2MT / Hour to 8MT/Hour. The units are
located in various blocks and villages of Sambalpur and Bargarh
districts. Capacity wise rice milling unit of Sambalpur and Bargarh
district.
Comprehensive status of Rice milling Industries in Sambalpur and Bargarh
district.

4. Sl.
No.
Year No of
units
workin
g
Produ
ction
in Lac
MT
Value
in
Crores
Installe
d
capacit
y in
Lac MT
on
single
shift
basis
Employment Nos. Exports
(Direct &
indirect)
Investment
in
Machinery
Regular contract
1. 2001-02 96 3.79 354.40 6.91 1920 4050 -- 76crores
2. 2002-03 110 4.32 411.30 7.92 2200 3300 -- 88crores
3. 2003-04 135 5.30 504.61 9.72 2700 4050 120Crors 108 crores
4. 2004-05 150 (Procurement of paddy will start shortly)
Growth trend of the rice milling industry in the last three years has been on
positive side. With 96 nos. of units in the 2001-02 in the cluster, their number
increase in 110 in the year 2002-03 registering growth of 19.5%. This figure
further increase to 135 in the year 2003-04 with another rise of 22.73% with
respect to the figure of the year 2002-03. Accordingly the rice production in
terms of quantity and value has also raised substantially.
3. Structure of Cluster :-
I. Rice Milling Industry :-as stated above 150 units are functioning
in the district of Sambalpur and Bargarh. 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

5. 3MT/Hour. The state of Orissa including units mainly in Sambalpur
and Bargarh, Cuttack and Ganjam etc accounts for 75% of the total
mills of Orissa.
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 these two districts but two main
industry associations are functioning namely :
a) Sambalpur Rice Millers Association,
b) Bargarh 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. These associations are
operating mainly in the office of the factories of respective President
of the Associations.
No separate association level executives have 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 Orissa.
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.

6. e) Ministry of Food Processing, Govt. of India.
f) Standard Certification Agencies.
a) Ministry of Agriculture, Govt. of India : In order to protect interest of
farmers to get them minimum support price of paddy and avoid their
exploitation by intermediateries, Govt. of India under its policy every year fixes
the minimum support price of various crops including paddy. The state
Government is directed to watch and monitor the price stabilization and incase
the price found lowering than MSP, various states designated agencies take up
the bulk purchase of paddy as per the specification and thereby maintain the
minimum support price.
b) Civil Supply Department., Govt. of Orissa :-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

7. assistance in infrastructure development, ISI-9000, TQM Certification
assistance in participation in international trade fairs and training etc.
e) Ministry of Food Processing formulates and implements the policies for food
processing industries with in overall national priorities and objective as well
facilitates the environment for healthy growth of food processing industry. The
major activities related to rice milling industries are as stated below:
* Financial cum grant in aids for following activities.
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.
 For strengthening Industry Association by compilation analysis,
publication of statistics and dissemination information.
 For food fortifcation 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.

8.  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.
4. Evolution of Cluster :
Concept of cluster was not aware by the members till 5th
September
2005. after intervention of CDA’s with the millers and subsequent visit to their
units a trust building was formed. A meeting by Bargarh rice millers association
in the presence of UNIDO officials, officials of Industries Deptt. and CDA’s was
conducted power point presentation on cluster development was made by
UNIDO which was attended by 60 millers out of 83 millers. Four nos. of young
entrepreneurs took interest to visit Kalady rice mill cluster at Kerala state in the
first instant.
Rice millers at Sambalpur-Bargarh are having two associations.
1. Bargarh Rice Millers Associations
2. Sambalpur Rice Millers Associations
Both the associations were defunct. The objective association was to take up
the policy matters with the Govt., which are not favourable to rice millers. After
much persuasion Bargarh rice mill could awoke and Sambalpur rice miller
association is yet to awake. The first rice mill started in Sambalpur district
during the year 1953. Subsequently a number of rice mills came up in the area.
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 for both
the district. The cluster region is covering under western part of Orissa. It
carries an extreme climate which is favourable for production of Paddy. Canal

9. from Hirakud Dam 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.
As per levy policy 75% of the milling capacity of the concerned unit is
mandatory to supply to FCI. Due to Govt. support the millers are not becoming
competitive and not showing interest for export market.
5. Production process description of value chain :-
Herein this rice milling cluster procurement of paddy by FCI and state
procuring agencies are so to say nil. Last year only civil supply corporation and
MARKFED have purchased some quantity of paddy from market yards. In the
usual process the farmers are supplying URS (under relaxation specification)
quality of paddy at market yard. The millers used to buy URS quality paddy at
specific rates fixed by Collector i.e Rs.403.50 per 75 Kg bag. The sequence of
activities carried out in this cluster from raw materials to final product is stated
below :
The Collector, Civil Supply Officer, Tahasildar and RMC authorities have
a committee to decide the quantity of paddy to be purchased by a rice mill from
a separate market yard. The farmers having received identity card from local
tahasildar can only be eligible to bring paddy to the market yard. The farmer
has to pay 1% market fee on URS price while selling paddy to the millers. The
millers will take away the paddy to the respective mills after payment to the
farmers by their own trucks or trucks supplied by truck union.
The milling process are as follows :
Introduction of Mechanical dryer is a value addition over manual sun
drying process. Herein in mechanical drying system steam is being used and it
is a continuous process takes 6 to 7 hours for drying paddy. Advantage is that
the mill can run during rainy. Inclusion of parboling with mechanical dryer has
been considered as modern rice mill in Kerala. Rest other process are common
in this area.

11. 1. Raw Rice/Parboiled Rice processing flow chart
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

12. 2. Process flow chart for exporting
Rice produced by common
rice mill
Silky unit
De stoning unit
Colour Sorting Machine
Grading
Weighment and Packing

13. ANALYSIS OF VALUE CHAIN
S,No
.
Process Flow Process
cost/Valu
e (in
Rs./- qtl.
Of rice)
Accumulate
d value
Remarks
1 Paddy (URS) 538 (URS:
Under
Relaxation
System)
2 Transport 10 548
3 Cleaning, loading,
soaking, drying,
dehusking,
polishing, grading,
etc.
20 568
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
rice
B –
Parboiled
rice
847.76 (a)
835.29 (b)
5 Cost of bags (2
nos.)
20 • 867.76
(a)
• 855.29
(b)
6 Transport 20 • 887.76
(a)
• 875.29
(b)
7 Sell price • 965.70
(a)
• 952.10
(b)
8. Net profit • 77.94 (a)
• 76.81 (b)
9. Sell of rice brand–
7%@ 500
35
10 Gross profit 112.94 (a)
111.81 (b)

14. 6. Analysis of Value Chain( as per FAQ standard)
Process Flow Process
Cost /
Value (in
Rs/qntl)
Accumulate
d value
Remarks
1.Paddy (Gd-A)
2.Mktg. Fee 1%
3.Cleaning loading,
4.Misc. 1.5%
5.Total 2.5%
6.Drying
7.Dehusking & polishing
8.Grading
9.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
560.00
14.00
9.00
20.00
2.00
12.00
20.00
20.00
500.00
50.00
560
574
583
603
605
902.98(a)
889.70(b)
914.98 (a)
934.98 (a)
921.70 (b)
954.98 (a)
941.70 (b)
90.30 (a)
88.09 (b)
35.00
9.50
134.80 (a)
132.59 (b)
(a) raw rice
(b) boiled rice
Charges 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.
7. 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

15. paddy by way of policy to protect the farmers from exploitations. It is observed
in our diagnostic study that no farmer is able to supply standard quality paddy.
As such they are not getting minimum support price. This is one of the major
problem.
b) Production process related problems
• In the process of parboiling water affluent is generated and is harmful.
The rice millers are getting problem to store it.
• Rice husk is the cheapest fuel for generating steam but the waste
product fly-ash is another headache for disposal for the millers.
c) Design related problems
The rice mills working in this cluster are of very old technology. Electrical
consumption is very high. Here in this technology electricity consumption is
very high compared to modern rice mills.
d) Technology related problems
Technology is changing day by day. The technology adopted by the rice
millers here in this cluster is occupying more space, consuming more energy
polluting air and water and it is time consuming. As a whole the cost of
production is high for the technology.
e) Credit Issues
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.
Organisational Issues : -
In this cluster 150 nos. rice mills have been established in between 120
to 130 Km length. Four to five nos. of rice mills are coming in each spot it may
be difficult to establish common facility center for all the rice mills.
8. Presence of support institutions :-
APEDA, minister of civil supply deptt., Agricultural Deptt., Govt. of
Orissa, Central Rice Research Institution, Cuttack, Indian Council for

16. 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 Orissa :- The Deputy Director of
Agriculture provides seeds to the farmers. They also have a
agricultural lab. at Sambalpur, which in turn informs the farmers
about seeds suitable for their local soils.
iv. CRRI, Cuttack : It is an inter-national level rice research center
institute produces new variety of paddy suitable to local climatic
condition.
v. OUAT : Orissa University of Agricultural Technology has a branch at
Chiplima, Sambalpur.
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.
9. Business Development Service Providers : (BDS)

17. The following are the basic BDS providors :
a) Farmers
b) Packing materials suppliers.
c) Transporters
d) Labour Contractors
e) Chartered Accountants
f) Export Consultants
The R&D and other institutes like ICAR, CRRI, OUAT, standard
certificate agencies, APEDA, CDP, SISI etc are in existence but rarely
approached by the industry except a few organized units who have been
benefited. There is a need to make the industry aware of various services
available and provided by these institutions.
10. 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.
11. 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.
12. Maping of Social Capital : -
Rice milling industries association in this particular cluster lack in
providing the following inputs to their member units.
 Marketing information and data flow.
 Training and motivational programmes.
 Developmental activities including participation in technical
workshop, trade fairs, R&D and technical dissemination
information.
It is needed to build social capital among the dynamic personalities so
as to enable them to organize aforesaid activities effectively for up-gradation of
rice mill cluster.

19. 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
F
O
F
W
A
R
D
L
I
N
K
A
G
E
B
A
C
K
W
A
R
D
L
I
N
K
A
G
E
 Transporters
 Spare parts Suppliers
 Export Consultants
 Chartered accountant
 Labor Contractor
BDS PROVIDERS
Maintenance & Job Work Providers
RAW MATERIAL SUPPLIERS
CORE
FIRMS
PRESENT CLUSTER
SUPPORT INSTITUTIONS
PACKING
MATERIALS
SUPPLIERS
FARMERS

20. 14. SWOT analysis :
The SWOT 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.
• Institutional
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.
• Enterprenure
not aware of sources
of low cost imported
automatic plants and
appropriate
processing
techniques.
• Locallyfabricate
dplant are
unstandardised & low
productive.
• potential for
productivity.
• Cost reduction
and quality
enhancement by
use of appropriate
technology/QMS.
• Tradi
tional
technology,
standard
and non-
professional
MS leading
to high cost
may retard
the industry
both at
domestic /
international
market.
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
* imposition
of taxes and
levies in
comparison
to
neighbouring
states may
further lead
to closure /
shift of
industries to
neighbouring
states..

21. export.
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
incomparison
to
neighbouring
states may
taper down
the industry.
15. Vision for the Cluster
THE VISION OF SAMBALPUR-BARGARH 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.
16. Strategy for Cluster Development
In view of strategic intervention proposed and vision of the cluster the
measurable objectives for 3 years period i.e.w.e.f. Dec 2005 to Nov 2008 have
been established below :
1. To create export awareness.
2. To induce ISO 9000 and other quality certifications atleast in 5 units.
3. To organize process / technology upgradation related 6 Nos. of
seminars / workshops / training programmes to improve efficiency /
quality and reduce rejections.
4. To organize workshops / demonstration of international /national plant
and machinery suppliers.
5. To induce energy conservation and pollution control system.
6. To organize 3 training programmes in export procedures and
documentation and marketing management.

22. 7. To setup a consortium and spare part stores for purchase of spare parts
by the consortium members in each cluster district from the common
created fund of the consortium.
8. Useful use of the wastes by applying economic technology.
17. ACTION PLAN :-
Sl.
No
.
Activity Year Time
perio
d
Total fund
requiremen
t
Share of fund
2005 – 06 SISI/DCSSI SI CA
A. Capacity Building
1. Awareness programme on
cluster development (1
day) – 2 nos.
Dec 05
Jan 06
20000.00
20000.00
20000.00
20000.00
2. Programme on capacity
building of rice millers
associations - 2 days
Feb 06
March
06
15000.00
15000.00
10000.00
10000.00
5000.00
(Assn.)
5000.00
(Assn.)
B. Marketing Development
1. Training programme on
export procedure &
Documentation.
June
06
25000.00 20000.00 5000.00
Assn.
C. Technology Upgradation
1. Awareness programme on
ISO 9000 (1 day)
June
06
10000.00 10000.00
2. Training / workshop on
reduction in broken in
milling, rejection &
parboiling techniques (2
days)
Aug 06 35000.00 30000.00 5000.00
3. Workshop/training on
storage
/drying/grading/polishing
techniques & marketing (2
days)
Nov 06 40000.00 35000.00 5000.00
5000.00
D. CAPACITY BUILDING
1. Exposure visit to good
cluster kaladi / Rudrapur /
karnal etc
Dec 06 150000.00 125000.00 25000.00
E. Marketing DEVELOPMENT
1. Training programme on
export management &
documentation (2 days)
Feb 06 40000.00 35000.00 5000.00
2. Workshop on export
packaging
April
07
50000.00 40000.00 10000.00
F. TECHNOLOGY UPGRADATION
1. ISO 9000
awareness/documentation
July 07 50000.00 25000.00 5000.00
2. Workshop/training
programmes on energy
conservation (2 days)
Sept
07
50000.00 40000.00 10000.00
3. Demonstration of
International / national
plant & machinery
suppliers
Information technology (2
Nov 07
Dec 07
200000.00 140000.00 40000.00 20000.00

23. days) – 1 No.
2007 – 08 (Upto Dec 2008)
1. Workshop/training
programmes on export
procedure
&documentation(2 days)
Oct 08 40000.00 35000.00 5000.00
Technology Upgradation
1 Workshop on pollution
control
Feb 08 30000.00 25000.00 5000.00
2 Awareness programmes
on ISO 9000/QMS (2 days)
Aug 08 30000.00 30000.00
3 Workshop on energy
conservation
Nov 08 40000.00 35000.00 5000.00
4 Programme on impact of
cluster development / End
report
Dec 08 50000.00 50000.00

24. BUDGETARY ESTIMATE
Sl.
No.
Activity / Particulars Amount
Required
Sub Total (Rs.)
1 Stationery/OE/Transport 60000.00
2 T.E. 60000.00
3 Laptop computer,printer & UPS 150000.00
4 Computer 1 No. 50000.00
320000.00 320000.00
2005 - 06
1 Activities proposed in 2005 – 06 180000.00
2 OE/POL 125000.00
3 TE 125000.00
4 Misc 25000.00
455000.00 455000.00
2006 – 07
1 Activities proposed in 2006 – 07 540000.00
2 OE/POL 140000.00
3 TE 140000.00
4 Misc 25000.00
845000.00 845000.00
2007 – 08
1 Activities proposed in 2007 – 08 220000.00
2 OE/POL 125000.00
3 TE 100000.00
4 Misc 30000.00
475000.00 475000.00
Grand Total : Rs. 209500.00