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A Project Report On

OPERATIONS IN A RICE PROCESSING INDUSTRY

at

KAMADHENU FOOD PROCESSING INDUSTRIES

Submitted By

B. Ravi Teja

ROLL NO: 131343

Under the Guidance of

Ms. Jayashree V

Post Graduate Diploma in Management

VIGNANA JYOTHI INSTITUTE OF MANAGEMENT

BACHUPALLY, HYDERABAD

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DECLARATION

I hereby declare that this Project Report titled Operations in a Rice

Processing Industry submitted by me is a bonafide work

undertaken by me and it is not submitted to any other Institution or

university for the award of any degree/diploma certificate or

published any time before.

B. Ravi Teja

Name of the Student Signature of the

Student

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CERTIFICATE

This is to certify that the Project Report titled Operations in a Rice

Processing Industry being submitted to Vignana Jyothi Institute of

Management is a bonafide work done B. Ravi Teja bearing roll no.

131343, under my guidance.

Date Signature of the Guide

Ms. Jayashree V

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Table of Contents

CONTENTS PAGE NUMBERS

1. Agriculture in India 1

2. Agriculture in AP 10

3. Rice production in India 11

4. Food processing Industry 14

5. Paddy 16

6. About the company 18

7. Objectives 19

8. Scope of study 19

9. Operational activities 20

10. Office operations 24

11. Record maintenance 27

12. Files 28

13. Company statistics 29

14. Power supply 29

15. Conclusion 30

16. Suggestions 30

17. Marketing 31

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Agriculture in India

Agriculture has a significant role in socio-economic fabric of India. Here Sikh farmers are

deploying a tractor and cane crusher to produce and distribute free cane juice on an Indian

festival. Several festivals relate to Agriculture in India. Holi - the festival of colours - is

celebrated across north India as the coming of spring. It is celebrated with bonfires,

meeting friends and strangers, playful painting each other with colours.

Agriculture in India has a significant history. Today, India ranks second worldwide in farm

output. Agriculture and allied sectors like forestry and fisheries accounted for 16.6% of the

GDP in 2009, about 50% of the total workforce. The economic contribution of agriculture

to India's GDP is steadily declining with the country's broad-based economic growth. Still,

agriculture is demographically the broadest economic sector and plays a significant role in

the overall socio-economic fabric of India.

Overview

As Per the 2010 FAO world agriculture statistics, India is the world's largest producer of

many fresh fruits and vegetables, milk, major spices, select fresh meats, select fibrous crops

such as jute, several staples such as millets and castor oil seed. India is the second largest

producer of wheat and rice, the world's major food staples. India is also the world's second

or third largest producer of several dry fruits, agriculture-based textile raw materials, roots

and tuber crops, pulses, farmed fish, eggs, coconut, sugarcane and numerous vegetables.

India ranked within the world's five largest producers of over 80% of agricultural produce

items, including many cash crops such as coffee and cotton, in 2010. India is also one of

the world's five largest producers of livestock and poultry meat, with one of the fastest

growth rates, as of 2011.

One report from 2008 claimed India's population is growing faster than its ability to

produce rice and wheat. Other recent studies claim India can easily feed its growing

population, plus produce wheat and rice for global exports, if it can reduce food staple

spoilage, improve its infrastructure and raise its farm productivity to those achieved by

other developing countries such as Brazil and China.

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In fiscal year ending June 2011, with a normal monsoon season, Indian agriculture

accomplished an all-time record production of 85.9 million tonnes of wheat, a 6.4%

increase from a year earlier. Rice output in India also hit a new record at 95.3 million

tonnes, a 7% increase from the year earlier. Lentils and many other food staples production

also increased year over year. Indian farmers, thus produced about 71 kilograms of wheat

and 80 kilograms of rice for every member of Indian population in 2011. The per capita

supply of rice every year in India is now higher than the per capita consumption of rice

every year in Japan.

India exported around 2 million metric tonnes of wheat and 2.1 million metric tonnes of

rice in 2011 to Africa, Nepal, Bangladesh and other regions around the world.

Aquaculture and catch fishery is amongst the fastest growing industries in India. Between

1990 and 2010, Indian fish capture harvest doubled, while aquaculture harvest tripled. In

2008, India was the world's sixth largest producer of marine and freshwater capture

fisheries, and the second largest aquaculture farmed fish producer. India exported 600,000

metric tonnes of fish products to nearly half of all the world's countries.

India has shown a steady average nationwide annual increase in the kilograms produced per

hectare for various agricultural items, over the last 60 years. These gains have come mainly

from India's green revolution, improving road and power generation infrastructure,

knowledge of gains and reforms. Despite these recent accomplishments, agriculture in

India has the potential for major productivity and total output gains, because crop yields in

India are still just 30% to 60% of the best sustainable crop yields achievable in the farms of

developed as well as other developing countries. Additionally, losses after harvest due to

poor infrastructure and unorganised retail cause India to experience some of the highest

food losses in the world.

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Indian agriculture since 1947

Over 50 years since its independence, India has made immense progress towards food

security. Indian population has tripled, but food-grain production more than quadrupled:

there has thus been substantial increase in available food-grain per capita.

Prior to the mid-1960s India relied on imports and food aid to meet domestic requirements.

However, two years of severe drought in 1965 and 1966 convinced India to reform its

agricultural policy, and that India could not rely on foreign aid and foreign imports for food

security. India adopted significant policy reforms focused on the goal of foodgrain self-

sufficiency. This ushered in India's Green Revolution. It began with the decision to adopt

superior yielding, disease resistant wheat varieties in combination with better farming

knowledge to improve productivity. The Indian state of Punjab led India's green revolution

and earned itself the distinction of being the country's bread basket.

The initial increase in production was centred on the irrigated areas of the Indian states of

Punjab, Haryana and western Uttar Pradesh. With both the farmers and the government

officials focusing on farm productivity and knowledge transfer, India's total foodgrain

production soared. A hectare of Indian wheat farms that produced an average of 0.8 tonnes

in 1948, produced 4.7 tonnes of wheat in 1975 from the same land. Such rapid growths in

farm productivity enabled India to become self-sufficient by the 1970s. It also empowered

the smallholder farmers to seek further means to increase food staples produced per

hectare. By 2000, Indian farms were adopting wheat varieties capable of yielding 6 tonnes

of wheat per hectare.

With agricultural policy success in wheat, India's Green Revolution technology spread to

rice. However, since irrigation infrastructure was very poor, Indian farmer innovated with

tube-wells, to harvest ground water. When gains from the new technology reached their

limits in the states of initial adoption, the technology spread in the 1970s and 1980s to the

states of eastern India — Bihar, Odisha and West Bengal. The lasting benefits of the

improved seeds and new technology extended principally to the irrigated areas which

account for about one-third of the harvested crop area. In the 1980s, Indian agriculture

policy shifted to "evolution of a production pattern in line with the demand pattern" leading

to a shift in emphasis to other agricultural commodities like oilseed, fruit and vegetables.

Farmers began adopting improved methods and technologies in dairying, fisheries and

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livestock, and meeting the diversified food needs of India's growing population. As with

Rice, the lasting benefits of improved seeds and improved farming technologies now

largely depends on whether India develops infrastructure such as irrigation network, flood

control systems, reliable electricity production capacity, all season rural and urban

highways, cold storage to prevent food spoilage, modern retail, and competitive buyers of

produce from the Indian farmer. This is increasingly the focus of Indian agriculture policy.

India's agricultural economy is undergoing structural changes. Between 1970 and 2011, the

GDP share of agriculture has fallen from 43 to 16%. This isn't because of reduced

importance of agriculture, or a consequence of agricultural policy. This is largely because

of the rapid economic growth in services, industrial output, and non-agricultural sectors in

India between 2000 to 2010.

Agricultural scientist MS Swaminathan has played a vital role in the green revolution. Last

year (2013) NDTV awarded his 25 living legend of India for outstanding contribution to

agriculture and making India a food sovereign country.

Irrigation

Irrigation in India refers to the supply of water from Indian rivers, tanks, wells, canals and

other artificial projects for the purpose of cultivation and agricultural activities. In country

such as India, 64% of cultivated land is dependent on monsoons.[1] The economic

significance of irrigation in India is namely, to reduce over dependence on monsoons,

advanced agricultural productivity, bringing more land under cultivation, reducing

instability in output levels, creation of job opportunities, electricity and transport facilities,

control of floods and prevention of droughts.

Output

Indian agriculture is diverse, ranging from impoverished farm villages to developed farms

utilising modern agricultural technologies. This image shows a farming community in a

more prosperous part of India.

As of 2011, India had a large and diverse agricultural sector, accounting, on average, for

about 16% of GDP and 10% of export earnings. India's arable land area of 159.7 million

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hectares (394.6 million acres) is the second largest in the world, after the United States. Its

gross irrigated crop area of 82.6 million hectares (215.6 million acres) is the largest in the

world. India is among the top three global producers of many crops, including wheat, rice,

pulses, cotton, peanuts, fruits and vegetables. Worldwide, as of 2011, India had the largest

herds of buffalo and cattle, is the largest producer of milk and has one of the largest and

fastest growing poultry industries.

The following table presents the twenty most important agricultural products in India, by

economic value, in 2009. Included in the table is the average productivity of India's farms

for each produce. For context and comparison, included is the average of the most

productive farms in the world and name of country where the most productive farms

existed in 2010. The table suggests India has large potential for further accomplishments

from productivity increases, in increased agricultural output and agricultural incomes. In

2009, India was the world's third largest producer of eggs, oranges, coconuts, tomatoes,

peas and beans. In addition to growth in total output, agriculture in India has shown an

increase in average agricultural output per hectare in last 60 years. The table below presents

average farm productivity in India over three farming years for some crops. Improving road

and power generation infrastructure, knowledge gains and reforms has allowed India to

increase farm productivity between 40% to 500% over 40 years. India's recent

accomplishments in crop yields while being impressive, are still just 30% to 60% of the

best crop yields achievable in the farms of developed as well as other developing countries.

Additionally, despite these gains in farm productivity, losses after harvest due to poor

infrastructure and unorganised retail cause India to experience some of the highest food

losses in the world.

India and China are competing to establish the world record on rice yields. Yuan Longping

of China National Hybrid Rice Research and Development Centre, China, set a world

record for rice yield in 2010 at 19 tonnes per hectare in a demonstration plot. In 2011, this

record was surpassed by an Indian farmer, Sumant Kumar, with 22.4 tonnes per hectare in

Bihar, also in a demonstration plot. Both these farmers claim to have employed newly

developed rice breeds and System of Rice Intensification (SRI), a recent innovation in rice

farming. The claimed Chinese and Indian yields have yet to be demonstrated on 7 hectare

farm lots and that these are reproducible over two consecutive years on the same farm.

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Problems

A rural market in India - farmers with limited marketing options sell their surplus produce

India lacks cold storage, food packaging as well as safe and efficient rural transport system.

This causes one of the world's highest food spoilage rates, particularly during Indian

monsoons and other adverse weather conditions. Food travels to the Indian consumer

through a slow and inefficient chain of traders. Indian consumers buy agricultural produce

in suburban markets known as 'sabzi mandi' such as one shown or from roadside vendors.

Indian agriculture includes a mix of traditional to modern farming techniques. In some

parts of India, traditional use of cattle to plough farms remains in use. Traditional farms

have some of the lowest per capita productivities and farmer incomes.

"Slow agricultural growth is a concern for policymakers as some two-thirds of India’s

people depend on rural employment for a living. Current agricultural practices are neither

economically nor environmentally sustainable and India's yields for many agricultural

commodities are low. Poorly maintained irrigation systems and almost universal lack of

good extension services are among the factors responsible. Farmers' access to markets is

hampered by poor roads, rudimentary market infrastructure, and excessive regulatio n."

—World Bank: "India Country Overview 2008"

"With a population of just over 1.2 billion, India is the world’s largest democracy. In the

past decade, the country has witnessed accelerated economic growth, emerged as a global

player with the world’s fourth largest economy in purchasing power parity terms, and made

progress towards achieving most of the Millennium Development Goals. India’s integration

into the global economy has been accompanied by impressive economic growth that has

brought significant economic and social benefits to the country. Nevertheless, disparities in

income and human development are on the rise. Preliminary estimates suggest that in 2009-

10 the combined all India poverty rate was 32 % compared to 37 % in 2004-05. Going

forward, it will be essential for India to build a productive, competitive, and diversified

agricultural sector and facilitate rural, non-farm entrepreneurship and employment.

Encouraging policies that promote competition in agricultural marketing will ensure that

farmers receive better prices."

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—World Bank: "India Country Overview 2011"

A 2003 analysis of India’s agricultural growth from 1970 to 2001 by the Food and

Agriculture Organisation identified systemic problems in Indian agriculture. For food

staples, the annual growth rate in production during the six-year segments 1970-76, 1976–

82, 1982–88, 1988–1994, 1994-2000 were found to be respectively 2.5, 2.5, 3.0, 2.6, and

1.8% per annum. Corresponding analyses for the index of total agricultural production

show a similar pattern, with the growth rate for 1994-2000 attaining only 1.5% per annum.

Infrastructure

India has very poor rural roads affecting timely supply of inputs and timely transfer of

outputs from Indian farms. Irrigation systems are inadequate leading to crop failures in

some parts of the country because of lack of water. In other areas regional floods, poor seed

quality and inefficient farming practices, lack of cold storage and harvest spoilage cause

over 30% of farmer's produce going to waste, lack of organised retail and competing buyers

thereby limiting Indian farmer's ability to sell the surplus and commercial crops.

The Indian farmer receives just 10 to 23% of the price the Indian consumer pays for exactly

the same produce, the difference going to losses, inefficiencies and middlemen. Farmers in

developed economies of Europe and the United States, in contrast, receive 64 to 81%.

Productivity

Although India has attained self-sufficiency in food staples, the productivity of Indian

farms is below that of Brazil, the United States, France and other nations. Indian wheat

farms, for example, produce about a third of the wheat per hectare per year compared to

farms in France. Rice productivity in India was less than half that of China. Other staples

productivity in India is similarly low. Indian total factor productivity growth remains below

2% per annum; in contrast, China's total factor productivity growths is about 6% per

annum, even though China also has smallholding farmers. Several studies suggest India

could eradicate hunger and malnutrition within India, and be a major source of food for the

world by achieving productivity comparable with other countries.

By contrast Indian farms in some regions post the best yields, for sugarcane, cassava and

tea crops.

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Yields for various crops vary significantly between Indian states. Some Indian states

produce two to three times more grain per acre than in other Indian states. The table

compares the statewide average yields for a few major agricultural crops within India, for

2001-2002.

Crop yields for some farms within India are within 90% of the best achieved yields by

farms in developed countries such as the United States and in European Union. No single

state of India is best in every crop. Tamil Nadu achieved highest yields in rice and

sugarcane, Haryana in wheat and coarse grains, Karnataka in cotton, Bihar in pulses, while

other states do well in horticulture, aquaculture, flower and fruit plantations. These

differences in agricultural productivity within India are a function of local infrastructure,

soil quality, micro-climates, local resources, farmer knowledge and innovations.

The Indian food distribution system is highly inefficient. Movement of agricultural produce

within India is heavily regulated, with inter-state and even inter-district restrictions on

marketing and movement of agricultural goods.

One study suggests Indian agricultural policy should best focus on improving rural

infrastructure primarily in the form of irrigation and flood control infrastructure, knowledge

transfer of better yielding and more disease resistant seeds. Additionally, cold storage,

hygienic food packaging and efficient modern retail to reduce waste can improve output

and rural incomes.

The low productivity in India is a result of the following factors:

The average size of land holdings is very small (less than 2 hectares) and is subject

to fragmentation due to land ceiling acts, and in some cases, family disputes. Such

small holdings are often over-manned, resulting in disguised unemployment and

low productivity of labour. Some reports claim smallholder farming may not be

cause of poor productivity, since the productivity is higher in China and many

developing economies even though China smallholder farmers constitute over 97%

of its farming population. Chinese smallholder farmer is able to rent his land to

larger farmers, China's organised retail and extensive Chinese highways are able to

provide the incentive and infrastructure necessary to its farmers for sharp increases

in farm productivity.

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Adoption of modern agricultural practices and use of technology is inadequate,

hampered by ignorance of such practices, high costs and impracticality in the case

of small land holdings.

According to the World Bank, Indian Branch: Priorities for Agriculture and Rural

Development", India's large agricultural subsidies are hampering productivity-

enhancing investment. Overregulation of agriculture has increased costs, price risks

and uncertainty. Government intervenes in labour, land, and credit markets. India

has inadequate infrastructure and services. World Bank also says that the allocation

of water is inefficient, unsustainable and inequitable. The irrigation infrastructure is

deteriorating. The overuse of water is currently being covered by over pumping

aquifers, but as these are falling by foot of groundwater each year, this is a limited

resource. The Intergovernmental Panel on Climate Change released a report that

food security may be a big problem in the region post 2030.

Illiteracy, general socio-economic backwardness, slow progress in implementing

land reforms and inadequate or inefficient finance and marketing services for farm

produce.

Inconsistent government policy. Agricultural subsidies and taxes often changed

without notice for short term political ends.

Irrigation facilities are inadequate, as revealed by the fact that only 52.6% of the

land was irrigated in 2003–04, which result in farmers still being dependent on

rainfall, specifically the Monsoon season. A good monsoon results in a robust

growth for the economy as a whole, while a poor monsoon leads to a sluggish

growth. Farm credit is regulated by NABARD, which is the statutory apex agent for

rural development in the subcontinent. At the same time overpumping made

possible by subsidised electric power is leading to an alarming drop in aquifer

levels.

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Agriculture in AP

Economy of the state is mainly based on Agriculture and Livestock. Andhra Pradesh is an

exporter of many agricultural products and is also known as Rice Bowl of India. Four

important rivers of India, the Godavari, Krishna, Penna, and Thungabhadra flow through

the state, providing irrigation. Agriculture is the main occupation and 60 percent of

population is engaged in agriculture and related activities. Rice is the major food crop and

staple food of the state.

Besides rice, farmers of this state also grow wheat, jowar, bajra, maize, minor millet, coarse

grain, many varieties of pulses, oil seeds, sugarcane, cotton, Chili pepper, mango nuts and

tobacco. Recently, crops used for vegetable oil production such as sunflower and peanuts

have gained favour. There are many multi-state irrigation projects in development,

including Godavari River Basin Irrigation Projects and Nagarjuna Sagar Dam.

Livestock is also another profitable business which involves, rearing of cattle in an enclosed

area for commercial purposes.

Fisheries contribute 10% of total fish and over 70% of the shrimp production of India. The

geographical location of the state allows marine fishing as well as inland fish production.

Marine exports from the state mainly comprises the 'Vannamei' shrimp and are expected to

cross $1 billion in 2013-14.

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Rice production in India

Rice production in India is an important part of the national economy.

India is one of the world's largest producers of white rice and brown rice, accounting for

20% of all world rice production. Rice is India's pre-eminent crop, and is the staple food of

the people of the eastern and southern parts of the country. Production increased from 53.6

million tons in FY 1980 to 74.6 million tons in FY 1990, a 39 percent increase over the

decade. By FY 1992, rice production had reached 111 million tons, second in the world

only to China with its 182 million tons. Since 1950 the increase has been more than 350

percent. Most of this increase was the result of an increase in yields; the number of hectares

increased only 40 percent during this period. Yields increased from 1,336 kilograms per

hectare in FY 1980 to 1,751 kilograms per hectare in FY 1990. The per-hectare yield

increased more than 262 percent between 1950 and 1992.

The country's rice production declined to 89.13 million tonnes in 2009-10 crop year (July–

June) from record 99.18 million tonnes in the previous year due to severe drought that

affected almost half of the country.India could achieve a record rice production of 100

million tonnes in 2010-11 crop year on the back of better monsoon this year. The India's

rice production reached to a record high of 104.32 million tonnes in 2011-2012 crop

year(July–June).

Rice is one of the chief grains of India. Moreover, this country has the biggest area under

rice cultivation, as it is one of the principal food crops. It is in fact the dominant crop of the

country. India is one of the leading producers of this crop. Rice is the basic food crop and

being a tropical plant, it flourishes comfortably in hot and humid climate. Rice is mainly

grown in rain fed areas that receive heavy annual rainfall. That is why it is fundamentally a

kharif crop in India. It demands temperature of around 25 degree Celsius and above and

rainfall of more than 100 cm. Rice is also grown through irrigation in those areas that

receives comparatively less rainfall. Rice is the staple food of eastern and southern parts of

India. In 2009-10, total rice production in India amounted to 89.13 million tonnes, which

was much less than production of previous year, 99.18 million tonnes.

Rice can be cultivated by different methods based on the type of region. But in India, the

traditional methods are still in use for harvesting rice. The fields are initially ploughed and

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then fertiliser is applied which typically consists of cow dung and then the field is

smoothed. The seeds are transplanted by hand and then through proper irrigation, the seeds

are cultivated. Rice grows on a variety of soils like silts, loams and gravels. It can also

tolerate alkaline as well as acid soils. However, clayey loam is well suited to the raising of

this crop. Actually the clayey soil can be easily converted into mud in which rice seedlings

can be transplanted easily. Proper care has to be taken as this crop thrives if the soil

remains wet and is under water during its growing years. Rice fields should be level and

should have low mud walls for retaining water. In the plain areas, excess rainwater is

allowed to inundate the rice fields and flow slowly. Rice raised in the well watered lowland

areas is known as lowland or wet rice. In the hilly areas, slopes are cut into terraces for the

cultivation of rice. Thus, the rice grown in the hilly areas is known as dry or upland rice.

Interestingly, per hectare yield of upland rice is comparatively less than that of the wet rice.

The regions cultivating this crop in India is distinguished as the western coastal strip, the

eastern coastal strip, covering all the primary deltas, Assam plains and surrounding low

hills, foothills and Terai region- along the Himalayas and states like West Bengal, Bihar,

eastern Uttar Pradesh, eastern Madhya Pradesh, northern Andhra Pradesh and Orissa. India,

being a land of eternal growing season, and the deltas of Kaveri River, Krishna River,

Godavari River and Mahanadi River with a thick set-up of canal irrigation, permits farmers

to raise two, and in some pockets, even three crops a year. Irrigation has made even three

crops a year possible. Irrigation has made it feasible even for Punjab and Haryana, known

for their baked climate, to grow rice. They even export their excess to other states. Punjab

and Haryana grow prized rice for export purposes. The hilly terraced fields from Kashmir

to Assam are idyllically suited for rice farming, with age-old hill irrigational conveniences.

High yielding kinds, enhanced planting methods, promised irrigation water supply and

mounting use of fertilizers have together led to beneficial and quick results. It is the rain

fed area that cuts down average yields per hectare.

In some of the states like West Bengal, Assam and Orissa two crops of rice are raised in a

year. Winter season in the north western India are extremely cold for rice. Rice is

considered as the master crop of coastal India and in some regions of the eastern India

where during the summer monsoon rainy season both high temperature and heavy rainfall

provide ideal conditions for the cultivation of rice. Almost all parts of India are suitable for

raising rice during the summer season provided that the water is available. Thus, rice is also

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raised even in those parts of western Uttar Pradesh, Punjab and Haryana where low level

areas are waterlogged during the summer monsoon rainy season.

Winter rice crop is a long duration crop and summer rice crop is a short duration crop. At

some places in the eastern and southern parts of India, rice crop of short duration is

followed by the rice crop of long duration. Winter rice crop is raised preferably in low

lying areas that remain flooded mainly during the rainy season. Autumn rice is raised in

Uttar Pradesh, Maharashtra, Rajasthan, Madhya Pradesh, Punjab and Himachal Pradesh.

Summer, autumn and winter rice crops are raised in West Bengal, Andhra Pradesh, Assam

and Orissa. Summer rice crop is raised on a small scale and on a small area. However,

winter rice crop is actually the leading rice crop accounting for a major portion of the total

Hectare under rice in all seasons in the country. Moreover in the last few years, several

steps in order to augment yield per hectare were taken up very seriously at all levels.Wheat

is a rabbi crop in this country. India ranks fourth in the production of wheat in the world.

Favorable Geographical Condition for Wheat Cultivation: In India, wheat is a winter crop.

Wheat requires a moderate cool climate with moderate rain. In India, it is grown in winter.

It needs temperature 10 degree C to 15 degree C for its cultivation. It thrives well in an

average temperature of 16-degree C. Warm and sunny weather is essential at the time of

ripening. Wheat requires a rainfall of 50 cm to 100 cm during the growing season. Too

much rain is injurious to the plant. On irrigated lands, a rainfall of 40 cm to 50 cm is

sufficient. Light rainfall and cloudiness before the grain ripens increase the productivity.

Alluvial level plains are ideal for wheat cultivation. Slightly rolling plains are also suitable.

Plains should be well drained so that water cannot stand there. Wheat requires fertile

alluvial soil. Clay loamy soils or even black cotton soils are suitable. Soil should retain

moisture. A certain amount of lime in the soil is beneficial. Labor factors are not as

important in the wheat cultivation as in the case of rice. However, labor is essential for the

cultivation. The other requirements of wheat cultivation include (i) irrigation, (ii) high

yielding varieties of seeds and (iii) capitals

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Food Processing Industry

Agriculture is the process of producing food, feeding products, fiber and other desired

products by the cultivation of certain plants and the raising of domesticated animals

(livestock). The practice of agriculture is also known as "farming". Scientists, inventors and

others devoted to improving farming methods and implements are also said to be engaged

in agriculture. More people in the world are involved in agriculture as their primary

economic activity than in any other, yet it only accounts for twenty percent of the world's

Gross Domestic Product (GDP).

Food processing Food processing includes the methods and techniques used to transform

raw ingredients into food for human consumption. Food processing takes clean, harvested

or slaughtered and butchered components and uses them to produce marketable food

products. There are several different ways in which food can be produced.

One Off Production: This method is used when customers make an order for something to

be made to their own specifications, for example a wedding cake. The making of One Off

Products could take days depending on how intricate the design is and also the ability of the

chef involved.

Batch Production: This method is used when the size of the market for a product is not

clear, and where there is a range within a product line. A certain number of the same goods

will be produced to make up a batch or run, for example a bakery may bake a limited

number of specific baked good. This method involves estimating the number of customers

that will want to buy that product.

Mass production: This method is used when there is a mass market for a large number of

identical products, for example chocolate bars, ready meals and canned food. The product

passes from one stage of production to another along a production line.

Just In Time: This method of production is mainly used in restaurants, sandwich

delicatessens, pizzerias, and sushi bars. All the components of the product are available in-

house and the customer chooses what they want in their product. It is then prepared with

fresh ingredients in front of the buyer.

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Food industry technologies

Modern food production is defined by sophisticated technologies. These include many

areas. Agricultural machinery, originally led by the tractor, has practically eliminated

human labor in many areas of production. Biotechnology is driving much change, in areas

as diverse as agrochemicals, plant breeding and food processing. Many other types of

technology are also involved, to the point where it is hard to find an area that does not have

a direct impact on the food industry. Computer technology is also a central force, with

computer networks and specialized software providing the support infrastructure to allow

global movement of the myriad components involved.

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Paddy

A paddy field is a flooded parcel of arable land used for growing semiaquatic rice. Paddy

cultivation should not be confused with cultivation of deep water rice, which is grown in

flooded conditions with water more than 50 cm (20 in) deep for at least a month. Genetic

evidence published in the Proceedings of the National Academy of Sciences of the United

States of America (PNAS) shows that all forms of paddy rice, both indica and japonica,

spring from a single domestication of the wild rice Oryza rufipogon that occurred 8,200–

13,500 years ago in China. Paddy fields are the typical feature of rice farming in east, south

and southeast Asia. Paddies can be built into steep hillsides as terraces and adjacent to

depressed or steeply sloped features such as rivers or marshes. They can require a great

deal of labor and materials to create, and need large quantities of water for irrigation. Oxen

and water buffalo, adapted for life in wetlands, are important working animals used

extensively in paddy field farming.

During the twentieth century, paddy field farming became the dominant form of growing

rice. Hill tribes of Thailand still cultivate dry-soil varieties called upland rice. Paddy field

farming is practiced in Cambodia, Bangladesh, China, Taiwan, India, Indonesia, Iran,

Japan, North Korea, South Korea, Malaysia, Myanmar, Nepal, Pakistan, the Philippines,

Sri Lanka, Thailand, Vietnam, and Laos, as well as Piedmont in Italy, the Camargue in

France, the Artibonite Valley in Haiti, and Sacramento Valley in California. Paddy fields

are a major source of atmospheric methane and have been estimated to contribute in the

range of 50 to 100 million tonnes of the gas per annum while yielding an estimated tonnes

of agricultural products per annum. Recent studies have shown that this can be significantly

reduced while also boosting crop yield by draining the paddies to allow the soil to aerate to

interrupt methane production. Studies have also shown the variability in assessment of

methane emission using local, regional and global factors and calling for better

inventorisation based on micro level data.

The word "paddy" is derived from the Malay word padi, rice plant.

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India

India has the largest paddy output in the world and is also the fourth largest exporter of rice

in the world. In India, West Bengal is the largest rice producing state. Paddy fields are a

common sight throughout India, both in the northern gangetic plains and the southern

peninsular plateaus. Paddy is cultivated at least twice a year in most parts of India, the two

seasons being known as Rabi and Kharif respectively. The former cultivation is dependent

on irrigation, while the latter depends on Monsoon. The paddy cultivation plays a major

role in socio-cultural life of rural India. Many festivals such as Onam in Kerala, Bihu in

Assam, Sankranthi in Andhra Pradesh, Thai Pongal In Tamil Nadu, Makar Sankranti in

Karnataka, Nabanna in West Bengal celebrates harvest of Paddy. Kaveri delta region of

Thanjavur is historically known as the rice bowl of Tamil Nadu and Kuttanadu is called the

rice bowl of Kerala.

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About the company:

Kamadhenu Food Processing Industries (KFPI) is a export quality oriented rice mill located

in Rudrur village in Nizamabad district. Venkatesh Bachu is the Managing Director of the

company. The capacity of the factory is 110 tons/day. The machinery of the factory are of

brands like SATAKE, MILLTECH, BUHLER, HALLMARK, INDIANA, ATLAS

COPCO. The company deals with various types of rice like BPT, HMT, JSR, 1010, Rupali,

Ganga Kaveri, Godavari. The company purchase paddy from Farmers and Dealers and sells

rice to rice shops, super markets, hotels, hostels, retail stores, distributors, exporters and

Government. The stock and machinery is hypothecated to Andhra Bank. It’s a B2B

business. Rice is a perishable good. The company does direct exports by forming a clusters

with other companies. The company supplies RO drinking water as a CSR activity.

Main product the company sells are Rice 1st quality and 2nd quality, broken rice, bran.

The byproducts are small broken, param, husk, ash.

The company sells rice through brands like HAPPY rice, Khushi rice, AMMA brand.

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Objectives:

The main objective of this internship project was

To supervise the various operational activities in the rice processing unit. This basically

starts from the time the company takes an order and work is done to meet the deadline. As

soon as the company receives an order the company starts the process by taking the

required amount of paddy and allocate proper schedule on the machinery to undergo

required processing.

To study the rice production in India.

To analyze the production process for reduction in cost of operations.

To prepare 4 P’s, SWOT, PESTLE for KFPI.

Scope of study:

The operational activities involved in a rice processing Industry starting from consumption

of paddy to supply of rice which include factory operations and office operations.

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Operational Activities

supplying

storing

packing

milling

boiler plant

storing

paddy purchase

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Operational Activities:

Pre Milling:

Step 1: Purchases paddy from farmers and agents after analyzing the sample.

Step 2: The employees do test milling for the procured samples. The employees do

analysis for moisture content and broken content in the lab.

Step 3: Placing the purchase order and provide gunny bags if the quality of the paddy is as

per our requirements.

Step 4: Farmers bring paddy through trucks. Re sampling and re analysis is done again to

confirm the overall quality of the paddy and decision whether to accept the goods or reject

it. The gross weight of the truck is taken by using weighting bridge. Now the decision is

made to unload in pit or store In the warehouse. Different quality of the paddy is placed

separately.

Step 5: Depending upon the demand and order, the processing takes place.

Step 6: If the broken content is high, the paddy is boiled in the plant and then the

processing takes place.

Milling:

1. Paddy is dumped into one of the unloading tanks U1, U2, U3 or U4 (100 tons each)

2. PRE CLEANER: dust, grass are removed from paddy.

3. Then into binny tanks.

4. Then into soaking tanks. Soaking is done to change the color of rice.

If the paddy is boiled with water, rice will become brown. It takes 8hours.

If paddy is soaked with steam, rice will become cream color. It takes 40 minutes to

1hour.

5. Then into dryers. For boiled, it takes 10 hours and for steam it takes 1 hour.

All the above are two in number and are 70 tons and 40 tons respectively.

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The steam is generated in boiler section which is used in the above process

6. Then it goes to paddy tank P1, P2, P3, P4, P5. capacity is 200 tons/tank.

Now the milling process starts.

7. PRE CLEANER: dust, grass, stones are removed from paddy.

8. DESTONER: stones are removed. This machine is SATAKE brand.

9. RUBBER SHELLER: removes husk from paddy grains. This machine is SATAKE

brand.

10. SEPERATOR: separates rice. This machine is MILLTECH brand.

11. SIZER: separates different sizes of rice.

12. WHITENER 1 (VTA1) : polishes the brown rice. Capacity 8tons/hour. This machine is

SATAKE brand.

Whitener 2 (VTA2) : polishes. Capacity 8tons/hour.

Whitener 3 (VTA3) : polishes. Capacity 8tons/hour.

Bran is formed as by product. Bran is sent to BB10 blower and param is separated.

13. SHIFTER: seperates small broken rice. This machine is SATAKE brand.

14. TEMPORING TANKS: stores and cools the warm rice. T1, T2, T3. Capacity: 30

tons/tank. This machine is SATAKE brand.

15. SILKY 1 and silky 2: for shining. Done with water and air. Capacity: 8tons/hour. This

machine is SATAKE brand.

Bran is formed as by product. Bran is sent to BB8 blower and param is separated.

16. THIN GRADER: seperates small broken.

17. SORTEX: seperates discoloured, damaged and immature rice from silky rice. A/C

room is required for this machine. This machine is BUHLER brand.

Sortex rejected rice is resortexed again and 2nd quality rice is separated.

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18. GRADER: There are 6 graders which seperates full grain rice and broken rice. This

machine is HALLMARK brand.

19. RICE TANK: R1, R2, R3, R4.

a) R1 and R2: 70 tons capacity

b) R3 and R4: 35 tons capacity

20. BAG FILLING MACHINE is of INDIANA brand.

21. PACKING and loading into the truck. The gross weight is noted.

22. AIR COMPRESSOR: this machine is used for rubber sheller, whitener, silky, sortex

machines. This machine is of ATLAS COPCO brand.

Page 28

Office Operations

office operations

Purchases

Govt farmers brokers

local

out of states

sales

with in state

out of state

FCI

export

Page 29

Office Operations:

Purchases & Negotiations:

The company’s main raw materials to purchase is paddy. The company have to buy at MSP

(Minimum Support Price).

Now MSP is Rs.1345/Quintal. The company maintains all details of purchases and sales in

B-register.

The company submits purchase vouchers in Collector office. They give permission to

supply to FCI.

Once the company supplies to FCI, collector office gives PERMITS out of which 50% are

local and 50% are Out of state. The company sells rice through brokers.

Purchasing from local: The Company have to pay market fees. The company can claim

VAT.

Purchasing from other state: The company have to give CST waybill.

Sales:

While selling products with in the state, the company have to issue 5 documents.

1) Permit. (not required for corporation areas)

2) VAT receipt (5%)

3) Market receipt

4) Insurance (Oriental Insurance)

5) Bill.

While selling products Out of state, the company have to issue 5 documents.

1) Permit.

2) CST waybill (2%)

3) Market receipt

4) Insurance

5) Bill.

While sending to FCI, only waybill and FCI bill are required.

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For exporting, the compnay have to issue

1) H-form

2) Permit

3) Market receipt

4) Insurance

5) Bills.

The company sells bran to solvents where they make oil from it.

The company sells small broken to distilleries and poultry.

The company sells husk to brick makers and power plants.

The company sells ash to brick makers.

Weight bridge calculations:

Gross > lorry with load

- Tare >empty lorry

= Net >weight of load

Relations with Government departments:

1) Collector office

2) Sales tax office

3) Agriculture market committee

4) Inspector of factories

5) Pollution control board

6) Food Corporation of India

The company does all transactions through Andhra bank, Bodhan branch.

The company does transactions with government through SBH.

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Record maintenance:

B register

Way bill book

Market permit book

Insurance

Tax invoice

DC Delevery Challan book

LF Lorry Freight

Gate pass

Materials received

Wages book

Weight bridge

Sample analysis

Paddy purchase report

Attendance & salaries

Loading slip

Gunnies Inward

Gunnies outward

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Files:

Electricity file

GO file

Weights and measurements

Tax invoice

Machinery servicing

FCI cut reports file

Bran invoice

Market receipts

Paddy bills file

Waybill file

Bank intrest

Insurance(rice)

Insurance(machinery, labour and others)

PF Provident Fund

Gunnies purchase

Telephone bills

Pollution control

Small scale industries

Warehouse

TDS

Stock & bardan

Farmers copy

Millers copy

Page 33

Company Statistics

1. Warehouse Capacity: 8,000 tons of paddy. 40,000 Square yards.

2. Overall production output (per day): 100 tons/24 hours.

3. Finished goods inventory capacity: 500 tons.

4. Number of employees: 50 fixed and 50 daily wage basis.

POWER SUPPLY

Power is supplied from transform to PCC room. From there it has direct connection supply

to pre cleaners, boiler, driers, mill, lighting. We get 1100 kv from sub station. And stepped

down to 400-700 volts 3phase.The power consumption for mill is 800 amps and for boiler

plant is 500 amps.Generator is of CATERPILLAR brand and its capacity is 400 amps but

we use 250 amps.

RO plant: it purifies water. Its capacity is 4500 lts. It is of UNIC CHEM TECHNOLOGIES

brand.

Page 34

Conclusion :

Based on my study, I found that the following are the conclusion

1. Labor shortage: It can be concluded that the company faces severe shortage of skilled

labor who suits the work profile.

2. Logistics: It can be concluded that the company faces severe problem of logistics

because it is located in remote area.

3. Government policies: The company is facing challenges due to changes in government

policies.

4. Bull whip effect: The company is facing challenges regarding bull whip effect.

5. Biased sampling: The company is facing challenges due to biased sampling.

6. Machinery problems : The company is facing challenges due to machinery problems and

spare parts availability.

7. power cuts : The company is facing challenge of power cuts as it is located in rural area.

8. environmental problems : The company is facing challenge due to environmental

problems like late monsoons and heavy rains.

9. collection period : The company is facing financial problem due to late collection period

of sales stock.

10. not getting good quality paddy : The company is facing problem of not producing best

quality rice because of not procuring good quality paddy.

My Suggestions :

1. Cylos should be installed for which much labor are not required.

2. Own lorry’s and containers should be bought.

3. Rice millers association should propose a best policy to government.

4. Technically skilled mechanic should be employed.

5. Co-generation should be done.

6. Cash and carry kind of orders should be encouraged.

7. Support to farmers by providing best quality seeds, fertilizers, pesticides.

Page 35

Marketing

SWOT analysis

Strength

one of the oldest players in the market, brand value, provides best quality, ample space,

financially strong, team work, latest machinery, employees are highly skilled and knowledged,

staff quarters inside the organization.

Weakness

Labor shortage, located in a remote area, power cuts.

Opportunity

silos, exports, retailing, online sales, backward

integration, re-generation.

Threat

competition.

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PESTLE analysis

Marketing

Political: change in

government policies.

Environmental: rainfall,

pollution control, water

wastage.

Economical: MSP,

competitive pricing, BEP

is high, inflation and

change in food prices.

Legal: policies regarding sales,

less tax if we sell in other states,

taxation and deductions.

Technological:

machinery upgradation,

RTGS transactions, use

of ERP.

Social: change in customer

tastes.

Page 37

SWOT analysis:

Strengths: one of the oldest players in the market, brand value, provides best quality,

ample space, financially strong, team work, CSR activity, latest machinery, employees are

highly skilled and knowledged, staff quarters inside the organization.

Weakness: Labor shortage, located in a remote area, power cuts.

Opportunity: silos, exports, retailing, online sales, backward integration, re-generation.

Threat: competition.

PESTLE:

Political: change in government policies.

Economical: MSP, competitive pricing, BEP is high, inflation and change in food prices.

Social: change in customer tastes.

Technological: machinery upgradation, RTGS transactions, use of ERP.

Legal: policies regarding sales, less tax if we sell in other states, taxation and deductions.

Environmental: rainfall, pollution control, water wastage.

4 P’s:

Product: Rice 1st quality and 2nd quality, broken rice, bran.

ByProducts: small broken, param, husk, ash.

Price: market price, MSP government price, negotiable for bulk orders.

Place: factory located in Rudrur, Nizamabad Dist. Sales all over India and abroad.

Promotion: JustDial, IndiaMart, BigBasket.