REPORT ON DIAGNOSTIC STUDY OF

RICE MILLING CLUSTER OF SAMBALPUR – BARGARH

DISTRICT

By Epart Dharma Raju

&Pitambar Parida

Cluster Development AgentDeptt. 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

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

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.

Sl. No.

Year No of units

working

Production in Lac MT

Value in Crores

Installed capacity

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

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.

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

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.

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

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.

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

2. Process flow chart for exporting

Rice produced by common rice mill

Silky unit

De stoning unit

Colour Sorting Machine

Grading

Weighment and Packing

S,No. Process Flow Process cost/Value

(in Rs./-qtl. Of rice)

Accumulated value

Remarks

1 Paddy (URS) 538 (URS: Under

Relaxation System)

2 Transport 10 5483 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 riceB –

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)

ANALYSIS OF VALUE CHAIN

6. Analysis of Value Chain( as per FAQ standard)

Process Flow Process Cost / Value (in Rs/qntl)

Accumulated 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

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

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)

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.

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

FOFWARD

LINKAGE

BACKWARD

LINKAGE

Transporters Spare parts Suppliers Export Consultants Chartered accountant Labor Contractor

BDS PROVIDERSMaintenance & Job Work Providers

RAW MATERIAL SUPPLIERS

CORE FIRMS

PRESENT CLUSTER MAP

SUPPORT INSTITUTIONS

PACKING MATERIALS SUPPLIERS

FARMERS

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.

Locallyfabricatedplant are unstandardised & low productive.

potential for productivity.

Cost reduction and quality enhancement by use of appropriate technology/QMS.

Traditional 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

* imposition of taxes and levies in comparison to neighbouring states may further lead

institutional support may be exploited.

Formation of consortium and making common brand for easy export.

to closure / shift of industries to neighbouring states..

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.

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 period

Total fund requirement

Share of fund

2005 – 06 SISI/DCSSI SI CAA. Capacity Building1. Awareness programme on

cluster development (1 day) – 2 nos.

Dec 05Jan 06

20000.0020000.00

20000.0020000.00

2. Programme on capacity building of rice millers associations - 2 days

Feb 06March 06

15000.0015000.00

10000.0010000.00

5000.00(Assn.)5000.00(Assn.)

B. Marketing Development1. Training programme on

export procedure & Documentation.

June 06

25000.00 20000.00 5000.00Assn.

C. Technology Upgradation1. 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 5000.005000.00

D. CAPACITY BUILDING

1. Exposure visit to good cluster kaladi / Rudrapur / karnal etc

Dec 06 150000.00 125000.00 25000.00

E. Marketing DEVELOPMENT1. 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 UPGRADATION1. ISO 9000

awareness/documentationJuly 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 suppliersInformation technology (2 days) – 1 No.

Nov 07

Dec 07

200000.00 140000.00 40000.00 20000.00

2007 – 08 (Upto Dec 2008)1. Workshop/training

programmes on export procedure &documentation(2 days)

Oct 08 40000.00 35000.00 5000.00

Technology Upgradation1 Workshop on pollution

controlFeb 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

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