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RICE MILL. 6
Rice Mill Introduction:
The largest consumed calorie source among the food grains. With a per capita availability of 73.8 kg it meets 31% of the total calorie requirement of the population. India is the second largest producer of rice in the world next to China. The all India area, production, and yield of rice in the year 2001-02 were 44.62 million hectares, 93.08 million tones food grains in India. West Bengal is the leading producer of paddy in the country. It accounts for 16.39% of the total production, and the other leading states are Uttar Pradesh (13.38%), Andhra Pradesh (12.24%), Punjab (9.47%), Orissa (7.68%) and Tamil Nadu (7.38%); the remaining states account for 33.45% of the production. India is also one of the leading exporters of rice in the world market. India¶s export of rice stood at 23.89 lakh MT in 1997-98. The corresponding value of foreign exchange earned was to the tune of Rs. 3371.00 crore in 1997-98. . Modern rice mills are having high capacity and are capital intensive, although efficient. Small modern rice mills have been developed and are available in the market but the lack of information is a bottleneck in its adoption by the
prospective entrepreneur. The present model will go a long way in bridging the information gap. Description of Rice Milling Operation: Paddy in its raw form cannot be consumed by human beings. It needs to be suitably processed for obtaining rice. Rice milling is the process which helps in removal of hulls and barns from paddy grains to produce polished rice. Rice forms the basic primary processed product obtained from paddy and this is further processed for obtaining various secondary and tertiary products. The basic rice milling processes consist of: Process Definition 1. Pre Cleaning: Removing all impurities and unfilled grains from paddy Industry of the country. At present it has a turnover of more 2. De-stoning: Separating small stones from paddy 3. Parboiling (Optional): Helps in improving the nutritional quality by gelatinization of starch inside the rice grain. It improves the milling recovery percent during deshelling and polishing / whitening operation 4. Husking: Removing husk from paddy 5. Husk Aspiration: Separating the husk from brown rice/ unhusked paddy 6. Paddy Separation: Separating the unhusked paddy from brown rice
7. Whitening: Removing all or part of the bran layer and germ from brown rice 8. Polishing: Improving the appearance of milled rice by removing the remaining bran particles and by polishing the exterior of the milled kernel 9. Length Grading: Separating small and large brokens from head rice 10. Blending: Mixing head rice with predetermined amount of brokens, as required by the customer 11. Weighing and bagging: Preparing the milled rice for transport to the customer The flow diagram of the various unit operations are as follows: Status of Rice Milling Units in India: Rice milling is the oldest and the largest agro processing Mill than 25,500/- crore per annum. It processes about 85 million tones of paddy per year and provides staple food grain and other valuable products required by over 60% of the population. Paddy grain is milled either in raw condition or after par-boiling, mostly by single hullers of which over 82,000 are registered in the country. Apart from it there are also a large number of unregistered single hulling units in the country. A good number (60 %) of these are also linked with par-boiling units and sun -drying yards.
The Central Govt. is also providing a big boost towards the development of this industry. It has since repealed w.e.f. May 27, 1998 the Rice Milling Industry (Regulation) Act, 1958 and Rice Milling Industry (Regulation and licensing) Rules , 1959. Further, rice milling sector which was earlier reserved for the small scale sector, have now been dereserved. As such, no license/ permission is now required for setting up a rice mill. Investment components of an improved rice mill: The various investment components are as follows: Land, layout plan and site development requirement: The land requirement for establishing an improved rice milling unit will depend upon 1. Whether the unit will be using a parboiling unit for pretreatment of paddy before commencement of milling operation or it will be directly milling raw paddy. 2. Whether a single pass or a multipass milling unit is to be installed. Generally 2.00 to 2.50 acre of land is required for establishing an improved rice milling unit having an installed processing capacity of 2 MT/ hr; operating for single shift / day of 8 hr duration; 300 days per annum; i.e. 4800 MT /annum. The land should be with proper elevation. Low lying areas should be avoided. Else proper land filling, compaction and consolidation should be done. Drainage and linkages with
road and other communication should also be ensured. The layout of the rice milling plant should be done in a manner that helps in smooth operation of various unit operations in tandem to bring about optimal capacity utilization and economizing power consumption development such as construction of boundary wall, internal roads and drainage system etc Civil construction: The various construction requirement of an improved rice milling unit are as follows 1. Raw paddy god own 2. Cleaning unit 3. Drier and necessary supporting structures such as, boiler /blower system etc. 4. Milling section 5. Finished product stores 6. Machine rooms 7. Auxiliary structures such as office, watch and ward etc.
Technology: It is better to use rubber roll shellers for dehusking of paddy in the unit for better performance. Plant and machinery and electrical-The details of the nature and type of plant and machinery, their capacity, power consumption, level of
automation varies upon the market needs, nature and type of the end products and the investment capacity of the entrepreneur. Whenever paddy is required to be parboiled prior to deshelling, a parboiling unit with steam boilers has to be installed by the milling unit. The details of plant and machinery for the rice milling unit are as follows: 1. Paddy cleaner-Rs 6, 50000/2. Rubber Roll Paddy Shellers-Rs 98,000/3. Paddy Separators-Rs 45,000/4. Blowers, Husk and Barn Aspirators-Rs 35,000/5. Paddy Polishers-Rs 6, 00000/6. Rice grader/ aspirator-Rs 50,000/7. Bucket Elevators-Rs 98,000/8. Electric-Rs 2, 50000/9. Insurance-Rs 3, 65000/Total amount without Land cost-Rs 2191000/-
Power: The total power requirement for the model project will to the tune of 75 KW. The essential power requirement of the unit is about 90 HP and accordingly suitable standby generator provision is made.
Water: Water is required for watersupply of desired quality and quantity should be ensured while appraising the proposal. Organizational setup: The unit may require a plant supervisor, one accountant cum store keeper, three machine operators, one peon parboiling and domestic consumption purpose. Suitable arrangements for continuos and two security staff. Apart from this, three skilled workers and twelve unskilled workers may be required for managing the day to day operation of the unit Depending upon the size of the unit; the manpower requirement may be modified. Security: Banks may take a decision as per Results of financial analysis are as under: RBI Guidelines
The financial analysis of the investment on an improved rice mill having an installed capacity of 4800 MT/ annum has been attempted and is placed from. The project has a margin money component of 25% with the rate of interest on term loan and working capital as 12% p.a. and 13% p.a. respectively. For this project, the financial indicators of the investment are as under:
SUNIL KUMAR DUBEY ( MBA 1ST SEM.)