A

PROJECT REPORT
ON
“A Study on Brand Positioning Basmati Rice with Special Reference To Nashik
District’’
At
Bajaj Finance Malegaon
SUBMITTED
BY
Vispute Dhananjay Sanjay
Under the Guidance of
Prof. Vinod Khair

In partial fulfillment of Requirements for the Award of Degree

MASTER OF BUSINESS ADMINISTRATION
DR. B.V. HIRAY COLLEGE OF MANEGEMENT AND RESEARCH CENTRE
2020-21

1
 DECLARATION
I hereby declare that this Project Report “A Study on Brand Positioning Basmati Rice’’ at Kiran Agency
Ltd. submitted by me is based on actual work carried out by me under the guidance of PROF. Vinod
Khair. Any reference to work done by any other person or institution or any material obtained from other
sources have been cited and referenced. It is further to state that this work is not submitted anywhere else for
any examination.

Place: Malegaon VISPUTE DHANANJAY KAILAS

Date:

2
 ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep regards towards all those who offered
valuable guidance.

I am highly obliged to my project guide Prof. Vinod Khair without whose assistance this could ever
see the light of the day.

I would like to express my appreciation to all the people who have contributed to the successful
completion of the project.

VISPUTE DHANANJAY KAILAS

3
 STUDENT DECLARATION

I,Dhaanjay Sanjay Vispute (Name of Student) hereby declare

that the project entitled
“ A Study on Brand Positioning Basmati Rice with Special Reference To Nashik
District ” is a
genuine and original work for the partial fulfillment of Master in Business Administration
to Savitribai Phule Pune University. To the best of my knowledge, any part of this context
has not been submitted earlier for any degree, or Certificate examination. The collected
data and certificate are true. Further I undertake that I will be solely responsible for
anything arise out of unfair mean.

Date: - / /

Place: -

Name:……………………..

Sign: ………………………...

INDEX
Chapter No. Title of contents Page No.

4
 Introduction 1-6
1
Project Profile 7-12
2.1 Objective of the study
2 2.2 Scope the Study
2.3 Limitation of Study

Company/Organization Profile 13-17

3 (Including Company/Organization chart)

Research Methodology 18-28

4.1 Statement of the problem
4
4.2 Research Design
4.3 Hypothesis if any
Data Interpretation 29-37
5
(Chart, Graph, Diagrams)
6.1 Finding 38-41
6 6.2 Suggestions & Recommendations

Conclusion 42-44
7
References 45-48
Appendix

5
1. INTRODUCTION

6
1.1 MARKETING DETAILS

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N. Malhotra, was
formed to evaluate the Indian insurance industry and recommended its figure direction. The Malhotra
committee was set up with the objective of complementing the reforms initiated in the financial sector. The
reforms were aimed at “creating a more efficient and competitive financial system suitable for the
requirements of the economy keeping in mind the structural changes currently underway and recognizing
that insurance in an important part of the overall financial system where it was necessary to address the need
for similar reforms. The low penetration can be explained in terms of non-emphasis on customer awareness,
training issues of agents and a low tax base. The heavy capital investments in terms of the distribution
networks, hiring of agents and the long gestation periods of 7-10 years provide entry barriers for the
industry. The key industry drivers are related to lifestyle issues in terms of perceiving insurance as a savings
instrument rather than for risk cover, need based selling, quality of service and customer awareness. The
future growth areas could be in term assurance, pension and health insurance. In terms of the distribution
channels, there is tremendous opportunity with banks and finance companies and by making the channel IT
driven. With increased commoditization of insurance products, brand building is going to play a vital role.
The provisions of the IRDA bill acknowledge a many issue related to insurance premia that will present it
from seeping out of the country. The IRDA bill provides for three levels of players – Insurance Company,
Insurance brokers and Insurance agent. In the life Insurance segment, the Life Insurance Corporation of
India (LIC) is the major player. The LIC has 2050 branches. It is constituted in to seven Zones. Currently,
there are 5,60,00 LIC agents in India. General Insurance in another segment, which has been growing at a
faster pace. But as peer the current comparative statistics, the general insurance premium has been lower
than life insurance. General Insurance premium as a percentage GDP was a mere 0.5 per cent in 1996. In the
General Insurance Business, General Insurance Corporation (GIC) and its four subsidiaries viz, New India
Insurance, Oriental Insurance, National Insurance and United India Insurance, are doing major growing at a
rte of 19 per cent per year Insurance is a colossal sector in India that is growing at a speedy rate of 15-20%.
The insurance sector is approximately 450 billion yet 80 percent of the population in India is not insured.
This gives you a peek into the huge growth opportunity that exists for this segment. The insurance business
in India mainly consists of two main players, the Life Insurance Corporation (LIC) and General Insurance
Corporation (GIC). Almost 100 divisional offices and 2000 branch offices are functional for LIC. As LIC
caters to life insurance, health insurance, property and accident insurance it needs an increasing number of
employees. The other player GIC undertakes motor, marine, personal accident and fire insurance. Moreover
it has four subsidiaries a) Oriental Insurance, b) United India Insurance, c) New India Assurance, and d)
National Insurance. Insurance companies in India have a deep-rooted history. It all began in 1818 when
Oriental Life Insurance Company in Calcutta was established. From then on insurance was scattered across
the country. It was an unorganized sector. Then in 1950, the entire insurance segment was nationalized.
After achieving freedom, the insurance sector gained momentum. In 1956 the government of India
consolidated 240 private life insurers and provident societies and this was how LIC came to life. The
justification to the nationalization of the life insurers was that the government would reap the necessary
funds that were required for industrialization. The general insurance industry still remained in the hands of
the private sector till 1972 and was then nationalized. LIC adds about 7 percent to the country’s GDP. With
IRDA’s regulation not less than 15 percent of funds from the insurance companies are said to fill the coffers
of infrastructure and social sectors. Thus, proving vital funds to the country’s growth. Infrastructure of the
country bears risks that are of a long-term character. They include political instability, geological
hindrances, gestation period and illiteracy. The long-term funds provided by Life Insurance of India not
only cover these risks but also help securing a brighter future for the country. Besides infrastructure the
7
insurance companies in India are vital for one’s saving purpose. In the beginning insurance was looked at as
a ‘tax-benefit’ investment. Slowly, however the mindset of the common man is changing. Life insurance is
now looked on as investment vehicle. With the introduction of private players in the sector there has been
more transparency and flexibility in the sector. Private players have procured almost 9 percent of the
insurance segment even though the coveted policies like endowment and money back still lay with the
government.

LIFE INSURERS Websites

Public Sector

 Life Insurance Corporation of India www.licindia.com

 Private Sector Allianz Bajaj Life Insurance Company Limited www.allianzbajaj.co.in
 Birla Sun-Life Insurance Company Limited www.birlasunlife.com
 HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com
 ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com
 ING Vysya Life Insurance Company Limited www.ingvysayalife.com
 Max New York Life Insurance Co. Limited www.maxnewyorklife.com
 MetLife Insurance Company Limited www.metlife.com
 Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com
 SBI Life Insurance Company Limited www.sbilife.co.in
 TATA AIG Life Insurance Company Limited www.tata-aig.com
 AMP Sanmar Assurance Company Limited www.ampsanmar.com

GENERAL INSURERS

Public Sector

 National Insurance Company Limited www.nationalinsuranceindia.com

 New India Assurance Company Limited www.niacl.com
 Oriental Insurance Company Limited www.orientalinsurance.nic.in
 United India Insurance Company Limited www.uiic.co.in

Private Sector

 Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in

 ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com
8
  IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.in
 Reliance General Insurance Co. Limited www.ril.com

INSURANCE SECTOR IN INDIA

The insurance sector in India has come a full circle from being an open competitive market to
nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance
sector reveals the 360-degree turn witnessed over a period of almost two centuries.

A brief history of the Insurance sector:

The business of life insurance in India in its existing form started in India in the year 1818 with the
establishment of the Oriental Life Insurance Company in Calcutta
.
Some of the important milestones in the life insurance business in India are:

• 1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
• 1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
• 1938: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.
• 1956: 245 Indian and foreign insurers and provident societies taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz.
LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of
India.
The General insurance business in India, on the other hand, can trace its
roots to the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
• 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact
all classes of general insurance business.
• 1957: General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
• 1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
• 1972: The General Insurance Business (Nationalizations) Act, 1972 nationalized
the general insurance business in India with effect from 1st January 1973.
• 107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.

Insurance sector reforms:

9
 In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra
was formed to evaluate the Indian insurance industry and recommend its future direction.

The Malhotra committee was set up with the objective of complementing the reforms initiated in the
financial sector. The reforms were aimed at "creating a more efficient and competitive financial system
suitable for the requirements of the economy keeping in mind the structural changes currently underway and
recognizing that insurance is an important part of the overall financial system where it was necessary to
address the need for similar reforms…"

In 1994, the committee submitted the report and some of the key recommendations included:

1) Structure

Government stake in the insurance Companies to be brought down to 50%

Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations
All the insurance companies should be given greater freedom to operate

2) Competition

Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter
the industry
No Company should deal in both Life and General Insurance through a single entity
Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies
Postal Life Insurance should be allowed to operate in the rural market
Only One State Level Life Insurance Company should be allowed to operate in each state

3) Regulatory Body

The Insurance Act should be changed

An Insurance Regulatory body should be set up
Controller of Insurance (Currently a part from the Finance Ministry) should be made
Independent

4) Investments

Mandatory Investments of LIC Life Fund in government securities to be reduced from

75% to 50%
GIC and its subsidiaries are not to hold more than 5% in any company (There current
holdings to be brought down to this level over a period of time)

5) Customer Service

LIC should pay interest on delays in payments beyond 30 days

10
 Insurance companies must be encouraged to set up unit linked pension plans Computerization
operations and updating of technology to be carried out in the insurance industry the committee
emphasized that in order to improve the customer services and increase the coverage of the insurance
industry should be opened up to competition.

But at the same time, the committee felt the need to exercise caution as any failure on the part of new
players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a
limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need
to provide greater autonomy to insurance companies in order to improve their performance and enable them
to act as independent companies with economic motives. For this purpose, it had proposed setting up an
independent regulatory body.

11
2 PROJECT PROFILE

12
2.1 Objectives of the study:

Primary objective

The primary objective of the study is to find out the “study on the customer satisfaction level of Bajaj
Allianz life insurance”

Secondary objective

To study the socio-economic variables that influences the insuring public to take up the policies.

• To study the awareness of insurance plans in Bajaj Allianz

• To study the effectiveness of advertisement of Bajaj Allianz
• To study the customer perception of life insurance
• To study the efficiency of Bajaj Allianz being a private organization.

Limitations of the study

The study suffers from a few limitations, which will have to be kept in mind for the findings to be fairly
interpreted

• The recommendations are subjected to time and cost constraint

• Sampling has its own limitations, which would have resulted in minor errors
• There can be errors due to bias of respondents
• The size of the sampling was not big enough to arrive at strong conclusion.
The results should be interpreted with the above limitations in perspective.

Need of insurance

Growing individualistic ideas are fast penetrating the Indian minds and the joint family and caste system are
fast cracking. Insurance has many benefits in store for them. It saves their families from misery, chaos, and
destitution. Insurance lays the foundation on which the economic structure of life can be gradually and
safely built up and sustained to the end. Uncertainties to the individual are made certainties for the group.

13
During 2005-2006 the total food grain production was 208.06 million tonnes in India. The production of
rice was 91.80 million Tonnes. With these production levels, India is the second largest producer of rice in
the world. Development and adoption of improved technologies particularly improved varieties possessing
high yield, resistance to important diseases and pests, have played a major role in enhancing crop
production and productivity.

2.1 OBJECTIVE OF THE STUDY

 to analyses the Kiran Agency products such as Kiran Agency royal and Kiran Agency malai

 to know the customer satisfaction level after consuming the product

 to meet the requirement of price conscious consumers

14
  to dispatch goods in a given period of time

 to analyze sub brands with their patent brands of Kiran Agency agro

 to find out ways to promote Kiran Agency royal, Kiran Agency malai manpasand , sadabahar, and
many other products

 to enquire rocketing demand of Kiran Agency basmati rice and reson behind it

 Agricultural and Processed Food Products Export Development Authority (APEDA) Basmati rice
means the "queen of fragrance or the perfumed one.

“This type of rice has been grown in the foothills of the Himalayas for thousands of years. Its perfumy, nut-
like flavor and aroma can be attributed to the fact that the grain is aged to decrease its moisture content.
Basmati, long-grained rice with a fine texture is the costliest rice in the world and has been favored by
emperors and praised by poets for hundreds of years. According to the Agricultural and Processed Food
Products Export Development Authority (APEDA), India is the second largest producer of rice after China,
and grows over a tenth of the world's wheat. In 1993, Basmati rice attracted the highest premium because it
is very-long grained rice, with an aroma of its own which enhances the flavors it’s mixed with.

2.2 SCOPE OF THE STUDY

The study is limited to Fogera Woreda, ANRS, with specific crop category, rice. The commodity approach
to market study will be followed to analyze the marketing chains of rice. It emphasized on different market
levels, roles of market players in the market channels, price setting, the cost benefit analysis of production
of rice, cost-margin for producers and traders buying and selling strategies, storage, transport and market
information will be the center of the study.

2.3LIMITATION OF STUDY

collection of the traders’ data was the most difficult task during the survey. Most of the time traders are
reluctant to give appropriate information as they link it with tax fees. Besides, they are busy and time
specific during interview. Some traders also appointed some more days to fill the questionnaire. Despite
being aware of the effect of quality on price, we are able to examine its impact because the intermediaries
purchase and sell rice based on their own criteria (this might be a problem in most of the agricultural
markets in Ethiopia)

15
 3. COMPANY /ORGANIZATION PROFILE
(INCLUDING COMPANY/ORGANIZATION CHART)

16
  COMPANY PROFILE

Basmati rice history originated from humbly environments of the rice bazar, Thrissur which is the
cultural capital of Kerala. Sri. M O John started his rice vending opening in the year 1959.. He was the
president of the chamber of commerce ( 1993-2000 ). The wide vision of great man, Basmati make about 20
verities of rice and 100 verities of food products under the famous brand name DOUBLE HORSE, Manjilas
food tech pvt ltd is a private firm. The firm is promoted by their individual viz; Rajeev Basmati,
Vinodmanjila, Santhoshmanjila, and Joe rani. Thanks to the wide vision of the great man, Basmati about 14
veritiesof rice and about 50 verities of food products under the brand name Basmati The rice powder unit
was started on 27 th December 1996. This unit was registered under industrial development of Kerala with
permanent S.S.I registration No.09/09/017445 dated 28-02-1997. The main items of manufacture were rice
powder, puttupodi, Idli powder, Dosa powder, etc. The unit is marketing the products all over Kerala and
some parts of Gulf under the brand name ― Basmati

The consistent quality and taste of their products increased day by day. So they increased their
production capacity gradually to 20 meter per day. Still the unit is not in a position to cater the demand of
both domestic and export market. The main bottleneck in production line is packaging section. 6 The unit is
packaging the products in printed laminated pouches manually. It consumes so much time for filling
accurate weighing and sealing. Another bottleneck is roasting. In keeping with the tradition of founder,
Double Horse blazes a trail of success with innovative ideas and multi-pronged technological
advancements. Pre-empting the changes in a rapidly evolving market, Double Horse was the first company
to innovate in the utilization of technology in the concept of packaged rice marketed as a brand product, to
impure grains and standardize all rice precuts and ISO9001-2000 certified will in Kerala.

In Basmati manufacturing units there are employing around 12000 people. Basmati group founded in
the year of 1959, later it has 2 rice mill at cheramangalam and Palakkad. The combined capacity of these
units is 120 tons per day. The company uses latest imported technology from sataka japan, Buhler Germany,
And Sortex England. Its high processing facilities and hygienic warehouses ensure the best quality rice for
all seasons. The unit use state of the art imported technology. Double Horse food products ensure well
wellknown reed division rotated in the growth of the traditional as well as ground-breaking products, giving
freshness to customers taste and taste. Double Horse highlighting on keep strict quality factors that contains
the following recognition of total infective count, Total fungous count and recognition of pathogens like
E.coli,,staphylococcus, salmonella, Bacillus, hysteria,aclostridium etc. Double Horse is available across
length and breadth of India, Middle East ,USA and Europe. Rice has been staple diet of millions worldwide,
but of decades back, for the Basmati it became more than just that. It becomes a passion that pulled into an
amazing success story. It was the rumple environs of rice bazar, Thrissur. That Basmati saga began. In order
to give his customer consistent quality M.O John started backing rice mill in 1976, from then on there was
no looking back. The company collecting paddy from various places like Tamilnadu, Andhra Pradesh and
processing the paddy from the major processing unit situated in Thrissur, Palakad and after that the
processed rice move to the main distribution centres in Palakkad and Kollam. The company marketing its
products through direct marketing. The company exports rice, various value added products instant mixes,
readyto eat products etc. Below the famous brand label Double Horse. The Basmati group, which produces
and markets 7 rice and rice products, has set a target of achieving 10 fold growth in three years. The
company produces 20 verities of rice and 56 rice based products. The products reach 20 lakh homes in
17
country about 5000 dealers. They expect a threefold in next year and planning to launch more ready to eat
products and try to strengthen their position in the market. The global market for rice will witness rapid
growth in the coming years and the company hopes to cash in on this booms
Main types of basmati rice we have

1. Pusa Basmati 1121

Also known as Muchal Basmati, this variety of Basmati Rice has a long-tipped point. Slender in
form, these rice grains are soft to the palate and are usually used for cooking Biryani and Pilaf. It is
one of the most widely used types of Basmati Rice.
2. Pusa Basmati – 1 
The Pusa Basmati – 1 has extra-long rice grains accompanied by a pleasant aroma. When cooked,
the kernel’s volume expansion is four times its normal size.
3. Ranbir Basmati 
Ranbir Basmati is a relatively old variety of rice that is widely consumed in Jammu & Kashmir and
Dehradun. The grains are exceptionally long with an exceptional aroma and taste which is why it is
favoured by the locals. Of the many types of Basmati rice, this one is popular among consumers in
general.
4. Basmati 386 
These rice grains are known to stretch to double its length when cooked. The Basmati 386 is a
premium variety of Basmati rice, quite prevalent in the market.
5. Taraori Basmati 
Also known as Karnal local, the Taraori Basmati rice variety is widely popular in the Taraori region.
It is considered to be the oldest Basmati rice variety to be cultivated since 1933. Generally used to
cook Pilaf, the long-grain rice is aromatic and a general option for weddings and events.

6. Basmati 217 
Of the different types of Basmati Rice available in India, the Basmati 217 is one of the newest. It is
highly valued for its exquisite taste and rich aroma. The grains of the Basmati are extra-long and
superfine.

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 Few varieties of rice in India are given below:

Rice
1009 Kar ADT 39
Alur Sanna Ambemohor Basmati
Amira Mogra Basmati Amira Tibar Basmati
Amire Full Basmati Amras Non Basmati
andra Sanna anekombu Sanna
anekowe Annapoorna
AP Raw Rice 5293 AP Raw Rice Baptla Ponni
AP Raw Rice PLR Soma AP Raw Rice SilkyRaw
AP Raw Rice-1001 AP Raw-Rice Sona Ponni
Arcot Kichikdi Arti Mashuri
BPT Balesuli
Bangar Kaddi Bangarkhovi
Bangarsanna Bantwal
Basamti Dawat Basmati (Rose)
Basmati Car Basmati Charmi
Basmati Dawat Roz-(20KG) Basmati Golden Sela New
Basmati Golden Sela Old Basmati Haryana Raw (New)
Basmati Haryana Raw (Old) Basmati Haryana Sela(New)
Basmati Haryana Sela(Old) Basmati Mogra (Raw/New)
Basmati Mogra (Raw/Old) Basmati Paddy
Basmati Silky Kohinoor Basmati Super Kohinoor

19
Basmati Trophy Basmati U.P. (New)
Basmati U.P. (Old) Basmati-370
Basmati-385 Basmati-386
Basmatibar (Raw/New) Basmatibar (Raw/Old)
Basmatidubar Raw/New Basmatidubar Raw/Old
Basumathi Bellary Sanna
Bile Kagga Boiled Rice
Broken Rice Broken Rice(Kanki)
BT Sona Byra (Red Rice)
Champakali Chikkahalga
China Sanna Chinoor
Chinoor Non Basmati Chintamani Sanna
CO 36 CO-43 (Medium) Boiled
Coarse Coarse (I.R.20)
Coimbatore Kaddi Coimbatore Sanna
Common CR 1009 (Coarse) Boiled
Culture Ponni1 Culture Ponni2

Name and address of the company Brand positioning Basmati Rice dist nasik

Brand name NIRAPARA

Registered office OKKAL

Business type Manufacture/suppliers/exporter

Incorporation 1976

20
 Anuual turnover 46 crores

No of workers 1200

Export markets UAE. Muscat,Bahrain,oman ,Qatar.

USA.UK. Singapore,France,Canada.

PRODUCT PROFILE

The basmati group has got wide variety under the brand same “NIRAPARA” .they started their business
initially with production of rice.

BASMATI RICE

Nirapara rice is available in wide range of varieties that suit various testes - brown rice and white rice in
round grained and long grained verities ,besides these ,there are specially rice verities for the varied
traditional users of rice in kitchen all over the world. Nirapara rice is the only rice is the only rice processed
using nutria select process which
Ensures that only best quality rice which the optimum value of vitamin B is selected by Z- sorted machine
and packed the result is that consumers can enjoy rice that is exquisites both in appearance and taste.

NIRAPARA RICE RANGE

Palakkadan matta rice Jaya rice

Matta raw rice Singled boiled rice

Cherumani rice Idli rice

Palakaddan matta short grain Ponni rice

Broken matta rice Jyothi rice

21
 Rose matta rice Paysam rice

1 JAYA RICE

This rice is an indigenous variety of rice grown primarily in the Palakkad region of Kerala. With its unique
flavors ,color, size and crispness makes it an ideal companion for all traditional Kerala dishes ,narapara jaya
rice is processed in the state of the art Z- sorted processors with almost care given to hygiene and quality
,makes it the most widely recognized rice and is exported from Kerala across the globe.

2 CHERUMANI RICE
par boiled round rice which is shorter in size and while in color, the most popular and preferred rice in
Kerala .

3 IDLI RICE

It is boiled round white rice . it is a bold and short .it is perfect for the preparation of idly .dosa and also
used for traditional kerala food items like puttu,appam ,idlyappam etc.

4 SINGLED BOILDED RICE

Nirapara single boiled rice is specially formulated broken rice with high nutritional value and easy
digesting in nature .it is preffered by recuperating patients due to the high standards of quality and ease of
ease of digestion with a low far and carbohydrates content.

5 BROKEN MATTA RICE

Broken rice is imperfect shape of rice kernel that broke to less than three fourth of the whole rice kernel
.make yummy delicacies using the finest quality nirapara broken rice.

6 PAYASAM RICE

The most favoured variety of the rice used for payasam ,due to the taste ,aroma and quality.payasam rice is
distinct from other varities of rice due to its dustinctive reddish tint ,signature rawness and unmatched non
sticky nature dish.

7 PALAKKADAM MATTA SHORT GRAIN

22
Red parboiled short grained rice ,it takes lesser time to get cooked when compared among the group and is
also rich in fibre and vitamin B content.

8 PALAKKADAM MATTA LONG GRAIN

Red parboiled long grained rice: the most popular and preffered rice in kerala and is the tastiest among the
group. Content of nutritients are high and is very unique in taste and colour.

9 RICE FLOURS

Breakfast is very important meal in every home . a wide range of exotic traditional rice based breakfast
items are very popular in even modern homes. Nirapara wide array of traditional kerala rice products stay
true to kerala unique flavor while proving to be nothing short of delectable feasts for your taste buds.
Niraparas scrumptious rice products have been making daily breakfast lingering experience both in taste and
togetherness for families all over kerala.

FLOUR PRODUCTS

Idly powder Appam powder

Dosa powder Instant idiyappam powder

Easy palappam powder Pathiri powder

23
24
 Organic rice flour

ORGANIZATION CHART

25
26
4.RESEARCH METHODOLOGY

27
4.1 Research & Methodology:
The report is based on the information & data gathered from industries, associations, institutions,
periodicals & literature on the subject matter. For this, various meetings, interactions & interviews were
held with the concerned identified cluster actors. For gathering information from the industries &
associations, a Performa was devised and necessary information was obtained through personal visits &
Interaction. The information’s & data from Institutions & other cluster actors was based on the specific
requirement of this report. Since this was a time bound assignment, the emphasis was made on personal
visits & interactions.

Name of the store: Kiran Agency

Establishment year 2002

Founded by Sridhar Chaudhari

Head office: Indira Nagar Nasik Maharashtra

Office hr. 09:30AM To 06:30PM Mon To Sat

Contact Number 025532591757

History

Kiran Agencies. From farmers, cultivators and vendors, we procure premium quality Indian Rice. The rich
that we procure and supply include Silky Basmati Rice, Basmati Raw Rice, Basmati Parboiled Rice and
Delhi Rice. It is cleaned, processed and packaged in quality material for ensuring hygiene and freshness.

Branches

 Pandit Colony

 Mahatma Nagar

 Indira Nagar (Main Branch)

Agricultural and Processed Food Products Export Development Authority

28
Pandit Colony Branch

29
 Mahatma Nagar Branch

Indira Nagar Branch

List of approved varieties

30
Punjab, Kernel Basmati (Pakistan), Dehradun, Safidon, Haryana, Super basmati, Kasturi (Baran, Rajasthan),
Basmati 198, basmati 217, basmati 370, basmati 385, basmati 386, Bihar, Kasturi, Mahi Suganda, Pusa,
Ranbir, Taraori. Some non-traditional aromatic crosses with basmati characteristics are marketed under a
Sugandh designation.

Detection of adulterated strains

Difficulty in differentiating genuine traditional basmati from pretenders and the significant price difference
between them has led fraudulent traders to adulterate traditional basmati. To protect the interests of
consumers and trade, a PCR-based assay similar to DNA fingerprinting in humans allows for the detection
of adulterated and non-basmati strains. Its detection limit for adulteration is from 1% upwards with an error
rate of ±1.5%. Exporters of basmati rice use 'purity certificates' based on DNA tests for their basmati rice
consignments. See Protocol and. based on this protocol, which was developed at the Centre for DNA
Fingerprinting and Diagnostics, Lab India, an Indian company has released kits to detect basmati
adulteration.

Flavor
Basmati rice has a typical pandan-like (Pandanus fascicular is leaf) flavor caused by the aroma compound 2-
acetyl-1-pyrroline. Basmati Rice is the choice of rice used for cooking Biryani, Pilaf and sometimes Kheer.

31
32
Patent battle

In September 1997, a Texas company called Rice Tec won a patent on "basmati rice lines and grains." The
patent secures lines of basmati and basmati-like rice and ways of analyzing that rice. Rice Tec, owned
by Prince Hans-Adam of Liechtenstein, faced international outrage over allegations of biopiracy. It had also
caused a brief diplomatic crisis between India and United States with India threatening to take the matter
to WTO as a violation of TRIPS which could have resulted in a major embarrassment for the United States.
Both voluntarily and due to review decisions by the United States Patent and Trademark Office, RiceTec
lost or withdrew most of the claims of the patent, including, most importantly, the right to call their rice
lines "basmati." A more limited varietal patent was granted to RiceTec in 2001 on claims dealing with three
strains of the rice developed by the company.

Glycemic index

According to the Canadian Diabetes Association, basmati rice has a "medium" glycemic index , thus
making it more suitable for diabetics as compared to certain other grains and products made from white
flour.

The Basmati Stakeholder

 The Basmati Rice Farmer

 Growing Basmati since centuries

 Farmer families involved are more than 1.0 Million

 95% own less than 5 Hectares

 Suffers post harvest losses & low prices

 Contributes 90% to the market value

33
The Basmati Rice Farmer

 Growing Basmati since centuries

 Farmer families involved are more than 1.0 Million

 95% own less than 5 Hectares

 Suffers post harvest losses & low prices

 Contributes 90% to the market value

The Miller
 More than 2000 rice mills in the area

 6% most modern rice mills

 Adds up to 5% in market able value

The Basmati Exporter

 Private rice exports only after1988

 500 exporters of Basmati rice

 Only a 100 export more than 1000 tons

 Control domestic rates.

The Government
 Policy making

 Regulation

 Research
34
  Indicative price

Kiran Agency has successfully established its Quality Management System according to ISO 9001:2000.
This means that all workflow, from the beginning up to the manufacturing and test procedures, is done to
the highest, precisely defined quality standard.
Kiran Agency', although registered in 1986 was formally launched in November 1992 when the group took
over a mill in Delhi under the stewardship of its Directors, Mr. Satish Pawa and Mr. Sant Lal Aggarwal. In
1994, Ms. Sudha Pawa, a textile designer by qualification, took over the reins of Kiran Agency Agro
Commodities Pvt. Ltd. and began supervising promotions and sales of the products. The company, on
January 3,1995 had the honour of receiving Trans World Gold Star Award for excellence in quality from the
Institute of Economic Studies, presented by Honorable Deputy Chief Minister of Goa, Shri Wilfred
D'Souza. 

Kiran Agency has successfully established its Quality Management System according to ISO 9001:2000.
This means that all workflow, from the beginning up to the manufacturing and test procedures, is done to
the highest, precisely defined quality standard.
The company, with its network of offices in major mandies of rice-producing states has full infrastructure to
procure the best quality of paddy. This paddy is then milled in two rice milling plants at Delhi and
Rai(Haryana), all having modern machines and equipments based on foreign technology, to produce the
finest Kiran Agency Basmati Rice with supreme flavour and fragrance.

SOURCE OF DATA
In the data collection method, we have collected both primary and secondary data to meet our objective.
Primary data:
The primary data was collected by a survey based on the questionnaire. It was formulated on the basis
of information gathered by me with the help of Mr. who provide useful guidelines and objective of our
study.

Secondary data:
The secondary data was collected from books and internet.

Research Approach:
35
 The required information in the form of data is collected through survey method, with the help of
personal interview through questionnaire method.

Sampling plan:
There is a stage where the planning is done about the sample units, sample size, sampling procedures
Sampling units:
This means, which is to be surveyed. So as mention earlier that the sample units is potential peoples.
Sample size:
The sample size means how many people should be surveyed. So that total sample size is 45, which
cover from different area of Delhi

Sampling Procedures:
I choose convenient and judgmental sampling for my research.

Data collection method:

Personal interview method is used for collection of primary data in the form of questionnaire from
respondents.

4.1 Statement of the problem:

The problem is to identify the problem related with brand awareness among the customers was done to analyze the
brands mostly preferred by customers in the market, the customers brand awareness and brand preference of Double
Horse and to rate the customers‘ brand loyalty towards ―Double Horse‖ with reference to Manjilas group of
companies

4.2 Research design

Need for the study
he project study was conducted on the topic ―Customers brand awareness and brand preference of Double Horse
product at Manjilas Food tech Pvt Ltd. The purpose of this research is to gain the deeper knowledge about how and
how customers are aware about Double Horse products and how they are preferring the Double Horse products.

Objectives of the study

36
  To determine the influence of advertisement on customer brand preference

 To identify the attributes that makes customers to prefer a specific brand

 To analyze whether the quality of a product have any influence on the customer brand preference

Scope of the study

The study covers how long Double Horse products can keep its market penetration by keeping its customers
happy and meet their changing demands in the competitive world. The scope of the study has been spread around the
following issues and tried to address it within the prevailing economic condition

4.4 Hypothesis if any

H0 (Null hypothesis) : There is no relationship between quality of the product and customers satisfaction with the
product H1 (Alternative hypothesis): There is a relationship between quality of the product and customers satisfaction
with the product

37
38
5.DATA INTERPRETATION

39
Q.1 TO WHICH COMPANY YOU WILL GIVE PREFERANCE WHILE PURCHASING

KIRAN AGENCY 45

KOHINOOR 25

INDIAGATE 10

DAVAT 20

45
40
35
30
25
response
20
15
10
5
0

Interpretation:
40
 Kiran Agency is one of the best selling brands in the market

Q2 WHICH OF THERE TWO BRANDS U PREFER THE MOST?

Malai 40

Royal 60

60
50
40 response

30
20
10
0

Interpretation:
Royal is the most preferable brand by the consumers

Q3 WHAT IS THE CURRENT DEMAND OF CUSTOMERS IN MARKET

0 TO 1 KG 10

41
 1 KG TO 5 KG 20

5 TO 10 KG 40

MORE THAN 10 20
KG

Interpretation:
The consumers mostly prefer to purchase 5 to 10 kg hic is there current demand.

Q.4 which of the followin influence the most while purchasing the product?

NAME & REPUTATION OF THE 25

COMPANY
HIGH QUALITY 45
MORE ADITIONAL SERVICESS 20
PRICE 10

45
40
35
30
25 response
20
15
10
5
0

Interpretation:
The consumers are now a day’s more quality conscious than any other factor

Q5 DOES THE SUPPLY OF THE PRODUCT IS ACORDANCE TO THE MATKET FORCESS?

42
Yes 80

No 20

Interpretation:
The market equilibrium is always maintained by KIRAN AGENCY

80

70

60

50 response

40

30

20

10

Basmati rice cropping

The delimitation of ancient Punjab was rather clear before the partition done in 1947 by the Authorities
of the British Empire for the independence of India and Pakistan. Old Punjab is likely to include
present western Punjab in Pakistan, eastern Punjab and Haryana in India. Most districts of these
regions are reported to be the Basmati belt. All these regions are located in Himalayan foothills and
constitute the home of Basmati, with peculiar pædo- climatic conditions and specific knowledge on
traditional cropping of Basmati rice (Giraud,
2008). For example, cropping in districts Sialkot, Sheikupura, Gujranwala in Pakistan and
Kurukshetra, Amritsar in India, is known for giving high quality and aroma to Basmati.

43
In western Punjab, which represents 91.2% of all Pakistan Basmati crops, Basmati acreage increased
by 39.7% in ten years, yield increased by 32.8%. However, Basmati yield is still
Low with 1721 kg/ha in 2006 in western Punjab, compared to 2116 kg/ha for all rice produced.

In Pakistan, and 3858 kg/ha in eastern Punjab and 3051 kg/ha in Haryana, which are the major Basmati
providing regions in India. As cropping area is stabilized into the studied countries, increase of
Basmati production depends on yield improvement, substitution of Basmati instead of coarse rice
crops, and improvement in milling process to a minor extent. Basmati represented 61.6% of rice
acreage and 50.3% of production in Pakistan in 2007. According to Mushtaq and Dawson, Basmati rice
acreage in Pakistan is not responsive to price shocks but more sensitive to variation in irrigated area.

Researchers are working hard in order to help at improving Basmati yields and spreading crop areas
( Singh et al., 2 0 0 6 ; B a s h i r e t a l ., 2 0 0 7 ; A b e d u l l a h , 2 00 7 ). However, en d -use
Characteristics are related to the growing place. The same seeds do not provide the same final Traits
according to variation in planting location. Hence the trade-off is between yield improvement and
pure lineage in Basmati parentage for new varieties.
44
Rice, a sensitive and special foodstuff

Rice is recognized as a sensitive and special product by some countries (Calpe and Prakash,

2007). It means that Governments are able to control, and sometimes stop the rice trade throughout
specific taxes, governmental distribution agencies and price regulation. This exception regime is said
to be leading to a more safe food security system providing rice at a low price for local population in
developing countries.

45
 Despite its second position as rice exporter, Vietnam banned commercial exporters from making sales
for several months in
2008 (Childs, 2008). Egypt, India and Bangladesh did the same. Basmati was not included in this ban
period. According to FAO, the share of export represents 48.0% of overall 2008 production for
Thailand, the first rice exporter, 54.0% for Pakistan, 55.2% for USA, 18.8% for Viet Nam, 2.4% for
India and 1.2% for China (FAO, 2008). Although related to the diverse varieties’ fitting with
consumers’ preferences, these percentages indicate various orientations towards trade market.

This process does not affect directly Basmati market (Childs and Kiawu, 2009). However, the authorities
from India and Pakistan pay attention to rice availability for their own inhabitants. In 2008, India
applied a minimum export price (MEP) of USD 1200 per ton, plus a cess of USD 180 on Basmati rice
exports (FAO, 2009). Pakistan applied a MEP of USD 1300 per ton for Basmati rice, and USD 1500 for
super Basmati, from January to August.

Major importers

Trade in coarse rice is spread in several countries, mainly located in Asia, with five first importers
making 25% of overall rice trade in 2007. Basmati trade is rather concentrated. In
2007, the first five clients of India have a share of 84.9% and those of Pakistan 68.5% of

Respective Basmati export (India: 616.7 million USD; Pakistan: 556 million USD). India mainly
exports Basmati to Saudi Arabia, European Union, Kuwait, Union of Arab Emirates and USA, whereas
Pakistan does the same with Union of Arab Emirates, Iran, Oman, European Union and Yemen.

46
Basmati trade is also concentrated by demand side. The five first importers made 44.5% of overall

market in 2007. Main importers are almost all located in the Middle East, although

European Union is the third importer.

47
48
Basmati price evolution

Basmati rice attains by far, a higher price than non-Basmati rice in both wholesale and retail markets.
Basmati particularly attracts highest price on world export market. According to Child, after nearly
tripling to record highs from November 2007 to May 2008, global trading prices have dropped sharply
(Child, 2008). Price quotes for Thailand’s high-quality long-grain milled rice, a benchmark for global
trading prices, have declined more than 40% since May. Prices for U.S. long-grain milled rice, which
more than doubled from November 2007 to late April 2008, have declined more than 30%.

By comparison, price of Basmati is the highest among rice from September 2007 to January
2009, but not during the peak of May 2008, with 1100 USD /T. Its evolution is more stable: after an
increase of 69.2% from September 2007 to March 2008, no drop was shown from May to January
2009 (FAO, 2009). Factors acting on Basmati price seem to be related to stable increase of demand
from major importers and harvest variation, rather than prices’ volatility on a rising market.

The price premium of Basmati attracts lot of players and increases competition between domestic
and trade markets. Hence frequent market shortages may probably also foster fraudulent blending. The
authentication of Basmati rice is an important topic since it attracts highest price on trade market.
Hence, rice trade counts several players, sensitive to the market pressure thus increasingly the demand of
Basmati rice, while the production does not always follow this trend.

Discussion
Authentication and traceability

Authentication methods of rice, based on DNA tests, are implemented and validated since long time
(Bligh et al., 1999). A survey using DNA test was carried out in 2003 by the British Food Standards
Agency in order to measure the sincerity of labelling Basmati on rice packages sold in UK
(Burns et al., 2004). Approximately one-third of the 363 samples, collected from a range of retail
outlets and catering suppliers, were labelled as from India, one-third from Pakistan, and the final one
third were not labelled with the country of origin. A small number of samples were labelled as mixed
49
origin.

All samples claimed to be Basmati rice as written on their labelling. While 196 (54%) samples
were found to contain only Basmati rice, non-Basmati rice was detected in 167 (46%). In around 24%
of these samples, the non-Basmati rice content was relatively small i.e. less than 10% (and below the
limit of measurement in 10% of these samples). However 63 (17%) samples had non-Basmati rice
content, greater than 20%. Of great concern were the 31 (9%) samples that were found to have non-
Basmati rice content greater than 60%.

On a market where demand exceeds by far supply, stakeholders are sometimes tempted to act in
borderline manner (World Trade Review, 2008). Hence, the presence of “semi-basmati”
and “product uncertainties” is noticed by literature based on field studies (Goel and Bhaskaran,
2007). Another issue on authentication and traceability of Basmati is the genetic selection and
parentage of hybrid lines.

Lineage and parentage

The market pressure, and expected earnings from stakeholders as well, led to improve yields of the
most expensive rice. The genetic selection, so far, gave several hybrids that now content small
percent of traditional Basmati pure line.
Presently, the different recognized lines of Basmati vary from Pakistan to India. It is questionable
when the list of native and indigenous lines of Basmati will be defined according to the GI protection in
one hand and trade pressure on another. Basmati 370 was identified in
1933, Super Basmati was developed in 1995 (Bashir et al., 2007). Nowadays, Basmati 2000

& Pusa 1121 are sold as Basmati, albeit not always showing strong links to either Basmati pure lines
or Punjab region. Some basmati-related seeds are n o w released in N e p a l , Bangladesh, Texas or
even Italy. Basmati sowing trials are noticed in Baluchistan in Pakistan, in Uttar Pradesh, Rajasthan and
Karnataka in India. However, agronomicand climatic conditions are very different from Punjab. Hence
genetic selection gave adapted hybrids able to resist to water scarcity or salt abundance or very hot
temperature or weeds attacks and so on. These hybrids are coming from Basmati lines in a modest

50
 extent. Hence the final characters of such hybrid lines are far from genuine traits of pure Basmati lines.

More generally, the long list of Basmati lines may confuse non-skilled stakeholders and consumers
as well. At least 60 lines of Basmati rice are released on the world seed market. The list includes the
name of the major pure lines and various hybrids as well. Of the largest aromatic germplasm
maintained at IRRI, about 86 are described by the name Basmati irrespective of grain dimensions
and intensity of aroma: Pakistan (67), India (9), Nepal (7), Bangladesh (2) and Sri Lanka (1).
Comparing these with Basmati standards, only 18 qualify as Basmati (Singh et al., 2000). A
harmonious combination of minimum kernel dimension, intensity of aroma, texture of cooked rice, high
volume expansion during cooking made up by linear kernel elongation with minimum breadth-wise
swelling, fluffiness, palatability, easy digestibility and longer shelf life qualify a rice to be Basmati in
consumers’ and traders’ view (Singh et al., 2000).

In September 2008, India put Pusa 1121 into the official list of Basmati lines (Gulf Times,
2008). Pusa 1121 is a hybrid released in 2003, which is the world's longest grain, but contains just 5%
of traditional Basmati line. This newly bred variety has yield two times more than traditional tall
basmati cultivars such as Taraori. It also scores high in terms of aroma, greater elongation upon cooking
and less chalky grain content. This event is the most recent of a long list of re-branding hybrid lines into
Basmati family in order to provide trade market to the expected quantities of basmati-like rice.

Listing what is Basmati or not at this stage may lead to endless controversy, as complex figure will
perpetually come out from crossbreeding developments. It might be worth to consider how to better
and clearly define what might be the percent of parentage kept into hybrid in order to make new
varieties eligible to qualify as Basmati lineage. Instead of making such trade-off on trade basis, it
might be preferable to use the end characteristics that make the segmentation between Basmati and
coarse rice: fragrance and cooking qualities. Hence, yield improvement would be a secondary factor, not
jeopardizing Basmati authenticity and origin.

Basmati is a trade-oriented commodity that attracts number of stakeholders because of price premium,
even when they are located far from Punjab, home of Basmati. Hence a clarification of crop areas and
seeds lines variety might enhance authenticity of GI Basmati and would allow at improving reliability

51
of Basmati supply chain actors as well (Chandola, 2006; Marie-
Vivien, 2008). This will act in favour of a more sustainable market for Basmati.

52
6.1 FINDING

A) The various logistics are involved in marketing of KIRAN AGENCY product such as

AGRICULTURE

Market functions They are as follows:

1. Buying and assembling.

2. Transporting and loading/unloading.

3. Grading.

4. Storing/warehousing.

5. Processing.

6. Financing

7. Risk-bearing Retailing

Functionaries:

The above functions are carried out by various functionaries which are as follows :

1. Traders.

2. Transporters.

3. Hamals.

4. Graders.

5. Weigh men.

6. Financers/Bankers.

7. Warehouses.

Agencies

Following agencies carry out marketing (buying and selling) at various stages :

1. Village/Itinerant merchant.

2. Wholesaler in assembling market.

53
 3. Commission agent or Dalal.

4. Preharvest contractor (in fruit crops).

5. Wholesaler in consuming markets.

6. Processor.

7. Retailer.

Types of markets

1. Wholesale markets.

i) In producing area.

ii) In consuming area.

2. Retail market in consuming area.

3. Daily Mandis and weekly markets in rural areas Producers selling directly to local consumers.

4. Annual and occasional fairs.

B) Kiran Agency Agro Commodities Pvt. Ltd. has established itself as a processor of world class basmati
rice. The premium brand of basmati from the company is adored by all and consumed by those who value
taste and expect nothing but the best.

C) PRODUCTS

 KIRAN AGENCY MALAI 

 KIRAN AGENCY KHUSHBU

 KIRAN AGENCY SADABAHAR

 KIRAN AGENCY MANPASAND

54
  KIRAN AGENCY EVERYDAY/SUPER EVERYDAY

Among them KIRAN AGENCY mail is mostly preferable

C) Kiran Agency is not only sold in India but in abroad also with the help of promoters and its brand name
D) Kiran Agency always meets the market demand and maintains the supply chain with the help of farmers
middle men and end users
E) The distributors play a major role in advertising the product it should try other sources also in promoting
the product like T.V. advertising etc.

6.2 Suggestions & Recommendations

With the objective of providing the best rice to the customers, Kiran Agency has made long term
investments in manufacturing, research and development facilities. In 1995, Kiran Agency Agro
Commodities Pvt. Ltd. became the proud recipient of the prestigious Trans World Gold Star Award for
excellence in quality from the Institute of Economic Studies.
Our quality expertise starts from the very beginning i.e. purchase and storage of paddy. The laboratory plays
a key role in respect of maintaining checks on several aspects such as size, length and removal of broken
tips. The high technology instruments enable the company to monitor quality parameters at each and every
stage of processing.
Rice is judged on 4 main parameters:
1. Appearance
2. Taste
3. Aroma
4. Cooking Quality.
Taste and Aroma are subjective characteristic.
The parameters for determining appearance of rice are:-
On the basis of average length of Kernels milled rice is classified into following categories:-

Scale Size Length (mm)

1 Extra Long > 7.50
2 long 6.61 – 7.50
3 medium 5.51 – 6.60
4 short 5.50 or less

55
Grain Shape is estimated by length/breath ratio of kernels.

Scale Size Length (mm)

1 Slender Over 3.0

2 Medium 2.1 2.1 – 3.0
3 Bold 1.1 – 2.0
4 Round 1.0 or less

Cooking and eating qualities of rice largely dependent upon the properties of Starch that makes up 90% of
milled rice. Several components traits collectively determine cooking and eating qualities, these are:

PROCUREMENT PROCEDURE

The procurement may be done in one of the following ways: -

 Directly from the farmers (in the raw form).

 From the Food Corporation of India (in the semi-processed or processed form).

 From various state govt. agencies (in the semi-processed or processed form).

 From the rice millers (mainly in processed form).

Once the trader identifies the type he wants, the next step is to select the correct quality and grade. Samples
are tested at various laboratories ands institutions (private or Govt. run) for conformity to various
specifications like moisture content, percentage broken, foreign matter, paddy, infestation etc. Once
satisfied the supplier(s) is identified and a contractual agreement is reached for the supply of specific quality
and quantity of rice within a certain time period subject to specified conditions of conformity to
specification, packaging, transportation and price. The contract is usually for a particular price to be paid at
the future date and outlines the delivery schedule and terms of payment.

56
7.Conclusion

57
 Rice is a main stay of Fogera farmers and it is the only "Rice basket of the region ". The main
objective of the study is to analyze the profitability rice production and marketing chain of rice in Fogera
woreda. The study specifically has focused on the profitability of rice production of farmers and traders,
structure and conduct of the rice markets. And it investigates factors contributing towards household’s
market participation in rice market and volume of rice supplied to market. The study also assesses the
support inputs services, and constraints and opportunities of rice market in the study area. The data were
generated by using pre-tested structured questionnaires. Data were obtained both from primary and
secondary sources.

The primary information was collected by interviewing farm households. Secondary data were obtained
from different sources like Rural and Development office, Trade and industry office the Woreda, IPMS,
agricultural research centers, Inland Revenue offices, publications and research studies, CSA, websites and
agricultural magazines. A total of 165 farmers, 6 wholesalers, 10 millers, and a total of 60 retailers (from
Bahir Dar, Gondar, Woreta) and 25 assemblers, 5 urban distributors were interviewed and the analyses were
made using SPSS and LIMDEP. Summary of results obtained was the following. The descriptive analysis
shows that the average family size of all households was 5.72 and with minimum 2 and maximum 13. The
farmer’s average family labor force was 2.67 in man equivalent with 6.15 maximum and 1 minimum. Rice
producers are private farmers who produced paddy during main cropping season. The major reason for
growing rice is for consumption and sale. In terms of land utilization rice is planted approximately on 0.6
hectares of land as compared with 0.36 and 0.31 hectares planted in Teff and Maize. 105 The production
inputs used were seed and to some extent herbicides and pesticides. only 3% of the sampled households
used urea, 1.2% use DAP and 4.9% used organic fertilizer for rice production The application of fertilizer
was very minimum, because of flooding and the soil is fertile alluvial soil (Abay,2006; IPMA,2005). The
common types of rice varities are X-Jigna (local) and Gumara (IAC-164.) the improved one. About 96% of
the sampled household used X-Jigina variety (local and mostly popularized by farmers). However Gumara
variety used less. Since it is red in color it is less demanded and used for consumption purpose as compare
to the white seed X-Jigina variety which has high market demanded. From a total of sampled producers of
households about 24% of rice producers were found to be non-sellers of rice mainly for different factors.
Farmers have different market outlets and traveled 1.6 hour per trip to sell their product. Twenty four lines
of market channels were identified. Five of these went outside the region and the rest sixteen ran inside.

The main receivers from farmers were wholesalers, Millers, Rural assemblers, urban assemblers with
an estimated percentage share of 44.9, 26.9, 14.1 and 11.9 percent respectively. Besides, the volume that
passed through each channel was compared and based on the result the channel that went out of region
consisting 95 quintal hosted the largest (42.1%) , followed by channels that stretched from Farmer→
Wholesalers→ Retailers→ Consumers hosted 81.98 qt respectively. The central question for this study is
"What will influence farmers' decisions to sell rice and what will stimulate them to sell more?" many
variables were hypothesized for analysis. In order to test the above hypothesis, different methods were
followed. The selectivity models encompass two steps to estimate factors on market participation and
volume of sale. The result of the Heckman two step model indicates that market information access,
quantity of paddy produced, extension contact with farmers and total livestock value increased the
likelihood of households decision to sell rice. And education level and quantity of rice produced affects
volume of rice sales positively but family size determines volume of sale 106 negatively. The Tobit result
also revealed that quantity produced was jointly affected both the probability of market participation and
volume of supply. The SCP model analyses also showed that the important entry barrier in rice market was
58
high competition with prior control of farmer and lack of investment capital. They had fewer problems with
taxes and license procedures. The survey result indicate that 46.7% of the respondents have 2-5 years of
experience in rice trading and about 40% of them had 6-10 years of experience. Their educational status
also indicates 64.3% were in secondary education and the rest are in primary education level. Regarding to
pricing strategy 53.3% of sampled traders set price by the market, 26.7% set price by themselves, 13.3% set
by negotiation of buyer and traders and the rest was by marketing experts. The four-firm Concentration
Ratio (CR4) indicated that the rice market is dominated by few wholesalers. The CR4 ratio is about 77%.
That means 77% of the market share going to major four wholesalers. The profitability analysis of rice
production shows that, the gross income obtained from paddy production was birr 17549.21 per hectare and
the total cost per hectare was 11688.23 Birr on samples households. Opportunity cost of land (rental value
of land) , was the items occupying maximum share in total cost (40.23%) followed by labour cost (34.65%),
animal power cost (13.11%). Material input cost like manure, herbicides, seed (10.26%) and other costs like
land rent/ tax and interest rate (26.86%) consists of the minimum cost share. The cost benefit analysis of
rice production shows that rice production is a profitable business for farmers. The net income obtained
from production per hectare of rice is 5006.48 Birr. The cost margin indicates that producers obtain on
average a profit of 35.97 Birr per qt with the market margin of 55.2 Birr per qt, assemblers get 139 Birr per
qt, millers a profit of 5.4 Birr per qt, wholesalers 9 Birr per qt, urban distributors birr 3.88 Birr per qt and
retailers around 19 Birr per qt. Though, assemblers get more profit, they also incur more marketing cost.
107 Constraints associated with farmers can be classified based on three categories, this are production
constraints, marketing and institutional aspect. Shortage of land is the primary problem of the sample farm
households in which 77% of households were respond it.

The lack of improved varieties (disease resistant, high yield and early mature) was also a constraint
in production which is responded positively by 76.1 per cent of the farmers. Most farmers cultivate local
variety X-Jigina (local variety) than the improved variety Gumara (IAC -164). Marketing is the second main
constraints of farmers. Problems of threshing machine or polishers to its marketing quality of rice were
responded positively by 55.8 per cent of the farmers. And also 45% of the respondents were complaining
various malpractices such as scaling or weighing, deduction and quoting of lower prices than actual.
Moreover, about 33% also respond that there were market problems associated with low output price,
maintenance of standards and grades. The last constraints for farm households are the institutional and
financing aspect. The main problems were transportation facilities, capital and credit availability. About
47% of the sampled farmers were responding positively for transportation problem and 40% to 46 % for
capital and credit respectively were perceived these problems. The major problems of wholesalers and
millers are limitation of capital. This is responded by 53.7% followed by tax payment. Usually millers as
well as wholesalers pay tax based on the number of milling machine they have and their licensed trading.
Another problem which was responded for wholesalers and millers were prior control of farmers followed
by information asymmetry and competition. It is responded by 20% of the sampled millers and wholesalers.
The problems associated with assemblers are road accessibility, lack of market; storage problems, capital
shortage, and credit access were the main once. With regarding to retailers, the common problems were
shortage of capital, quality, adulteration, and shortage of credit.

Rice is a newly introduced crop in Ethiopia. However; it is increasing in production and area coverage.
Rice is an exceptional crop due to its water loving nature and its higher productivity than other field crops.
Though Ethiopia has tremendous area suitable for rice production little has been used until recently while
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many tones of imported rice are consumed in Africa as well as in Ethiopia. Hence, increasing production
and productivity of this crop may contribute to food security. In Fogera and the nearby Woredas, rice is
becoming a strategic crop for the livelihood of many farmers. In the past, the study area was very food
insecure due to flooding problem. However, after the introduction of this crop, it is considered to be one of
the surplus producing Woredas in South Gondar zone. The production trend shows that rice production
increased from 160 qt in 1993/94 to 417,735 qt in 2007/08. Similarly, the area coverage of rice increased
from 6 hectare in 1993/94 to 9,213 hectare in 2007/8. A number of factors may have affected market
participation decision and volume of sales of rice in the country. In the case of Fogera district, the identified
factors are access to market information, quantity of paddy produced, extension contact and livestock value
were the main determinants of market participation decision for a household positively. For the volume of
supply, household head’s education level (positively), quantity produced (positively), and family size
(negatively) were the important variables that determines volume of rice sale in the market. Findings based
on the results of the study (Heckman two-stage model), to promote rice market participation in a sustainable
way, some policy implications are suggested to be addressed. 109

1. Strengthening the existing price and market information system Generally, commercial farmers are
capable of sourcing price and buyer information from different sources whereas poor farmers rely on
other farmers and government extension staff for the same information. There is therefore, a great
need to make information available to farmers at the right time and place. In response to this
challenge, it is good to develop an integrated agricultural marketing information system that will be
linked to Woreda information center, and to link them to government’s program.

2. Intervention to increase production and productivity of rice The quantity of rice produced at the farm
level affected marketable supply of rice positively and significantly. However, farmers are working
under limited plots of land by natural as well as socio-economic factors without using improved
technologies and agricultural inputs. Rice producers in Fogera Woreda used little inputs (like
improved seeds, pesticides and insecticides and modern technologies). Hence, increasing production
and productivity of rice per unit area of land is better alternative to increase marketable supply of
rice. Introduction of improved varieties, application of chemical fertilizers, using of modern
technologies, controlling disease and pest practices should be promoted to increase production.

3. Facilitating extension services The results of the study indicates provision of extension service
improve market participation of rice. Farmers have to linking production with marketing. And also it
is good to enlightening farmers to produce based on market signals, consumer preferences and to
direct or advice on the proper methods of handling, storing, transporting, and above all improving
quality of rice. Hence, it is recommended to assign efficient extension system, updating the
extension agent’s knowledge and skills with improved production and marketing system. 110

4. Promoting education and trainings in production and marketing Changing the attitudes of farmers is
a crucial factor in improving the marketing performance of households. If farmers have awareness
about the benefit of the specialty market, they do not need only immediate economic advantages
from the sale of their product. In case of production, household heads with very limited education
encounter in successfully managing, fertilizer and pesticide applications, and also what to produce
inline with taste and preference of consumers demand, especially in the presence of ineffective

60
 extension services. So stakeholders’ and Agricultural and Rural Development Offices have to create
awareness about the specialty of market. Continuous education and training on production and
marketing will have a positive impact on their attitudes.

5. Promoting potentially collective organizations (cooperatives) Cooperatives are assumed to play

important role in improving the bargaining position of the producers and creating, lowering
transaction costs, reducing the level of oligopolistic market type by creating competitive market.

6. Improving the quality of rice Most attributes for rice is its quality. The Fogera rice has poor quality
as compared to imported ones (Basmati, Ponte, and others types) both in kernel size and in color.
This results from, its poor post harvest handling, spoilage during harvesting, hulling and threshing
problems all together reduces the quality of rice in the market upon its selling price. Hence, especial
attention should be given to improve quality so as to satisfy consumer’s desire, and farmer’s market
price return.

7. Licensing the traders Traders should have license to operate at any level of trade, some of the traders
have continued to operate with no license. Assemblers and brokers (though few) are with no 111
licensing. Also no clear demarcation of trading (fore instance, millers are acting as wholesaler). This
has put the legal traders at a disadvantage when competing in the market. Therefore, public
authorities in collaboration with representatives of traders should devise means of controlling those
engaged in illegal trade.

8. Promoting family planning Family size is one of the significant demographic variables that affect
volume of supply. With limited production, supporting a larger and extended family size would have
been difficult for the farmers. This can be possible through the intervention of integrating family
planning with health extension service and with respective concerned bodies.

61
 References

www.satnamindia.com

www.grocernewstoday.com

www.indiawest.com

www.almondz.com

www.dawaatindia.com

www.FnBnews.com

www.lalquilla.com

KRBLindia.com

Food grain milling industry-report

Indian Agriculture 2006

http:/indiabudget.nic.in

62
 Appendix

Appendix 1: exporting countries

Exerting countries Year 2012

qty value

USA 1267359 514768

china 12227 78373

India 63669 51039

Italy 32922 28154

brazil 59573 22978

Russian federation 71345 22406

Spain 43207 18576

Thailand 21722 14159

Appendix 2: Area under basmati rice in selected states of India

Selected State-wise Area under Basmati Rice in India

(2009-2010 and 2010-2011)
(In Lakh Hectare)

states 7 7.81

Punjab 5.13 5.5

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Uttar Pradesh 2.54 3.78
Uttarakhand 0.1 0.3

Appendix 3: State wise Rice production in India

State 2011 -12

Production Share (%)

West Bengal 14850 14.23

Uttar Pradesh 14030 13.45

Andhra Pradesh 12890 12.35

Punjab 10540 10.10

Bihar 7200 6.90

Tamilnadu 6890 6.60

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Appendix 4: India’s rice production in global context

year World Production in Indian Production in India‟s share (In %)

million MT million MT
2001-02 399 93.34 23.39

2002-03 380 71.82 18.90

2003-04 390 88.53 22.70

2004-05 405 83.13 20.53

2005-06 423 91.79 21.70

2006-07 427 93.35 21.86

2007-08 438 96.69 22.08

2008-09 459 99.18 22.61

2009-10 457 89.09 19.49

2010-11 449 95.98 21.38

2011-12 456 104.32 22.88

2012-13 463 103 22.55

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66
General Guideline for SIP 2020-21

1. The formatting should follow the below points.

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b. Font Size 14 (Side Headings)
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