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Rice mill Industry is changing day by day, since rice is an

unavoidable commodity for our Day today life. KeraIa
consumer state. We have to depend on other states in order to get
Paddy. The steps taken by the Government of kerala like the
subsidized loan schemes, and various Other packages led to an
increase in the production of paddy in the state. The efforts taken
by the State Civil Supplies Corporation has also proved to be fruitful
and we have been able to reduce Our dependence on other slates
to a great exlent. There are around 200 rice mills at Kalady alone.
Food proceeding is seen as an industry with quick returns,
whose gestation period is Much less than that of other industries.
This is also the reason why a large number of NRI Investors have
shown keen interest in food processing. During the past few years,
since food Processing became the new wave industry. Many
Foreign giants have decided to enter this Segment of the Indian
market. The changing life style of people, increase rate of T.V and
other Media coverage has triggered greater scope for the food
processing industry.
There are strong economic justifications for setting up food
industries from the view Point of farmers and consumers, along with
the benefits of employment generation and Industrialization should
however be admitted, the food processing industry in India is still
Infancy. Institutional demand the requirements of hotels,
restaurants and households consumption Comprises the domestic
demand for the processed food industry. The two characteristics
Governing consumption of processed food in the household
sector is, the change in food habits And standard of living of the
As regards the structure of the industry, it is noticed that small and
big co-exist in theIndustry in india.The food processing industry
covers the entire range from wheat our, rice Milling, oil extraction,
sugar etc, to the latest of the ready to eat kind of tinned and
preserved Foods.

The products need to be manufactured and marketed

appropriately in order to tap the Domestic and export potential of 1ice, wheat, cereal products, sugar preservatives confectionary,
Diary products, fruits, vegetables, fish products, meat, poultry, ice
creams, tea and coffee.

According to the confederation of indian Food Trade and Industry,

the food processing industry is the largest determinant of GNP ,
accounting for 19% of the total industrial production and employing
around 18% of the national force.

Rice cultivation is the principal activity and source of income for
millions of households around the globe, and several countries of
Africa arc highly dependent on rice as a source of foreign exchange
earnings and government revenue.Rice is the second largest
produced cereal in the world. At the beginning of the 1990s, annual
production was around 350 million tons and by the end of the
centuary it had reached 410 million tons.
The worlds major rice producing countries including the two most
populous nations,China and India have emphasised the importance
of continuning to develop new rice varieties to guarantee Asias food
security and support the regions economic development.
Today rice is grown and harvested on every continent except
Antartica, where conditions make its growth impossibl. The majority
of rice produced comes from India,China.Indonesia,Thailand,Burma
and Bangladesh. Asian farmers still account for 92% of the worlds
total rice production.More than 550 million tons of rice is produced
annual around the globe.ln the united states, farmers have been
succesfully harvesting rice for more than 300years. There are
thousands of strains of rice today, including those grown in the wild
and those, which are cultivated as a crop. At least 114 countries
grow rice and more than 50 have an annual production of 100000
tons or more.Asian farmers produce about 90% of the total, which
two countries,China, India, growing more than half the total
crop.Fore most rice producing countries where annual production
exceed 1 million ton, rice is the staple food. In Bangladesh,

Cambodia, Indonesia, Lao PDR, Myanmar, Thailand, and Vietnam,

rice provides 5-10% of per capita daily
World top 10 rice producing countries:
Some other rice producing countries
Afganistan, Argentina, Australia
Bhutan, Bolivia, Burkina faso

Indian is one of the worlds largest producers of white rice,
accounting for 20% of all world rice production. Rice is grown in
many regions across India. For about 65% of the people living in
India, rice is a stable food for them. Rice is essential to life in India.
It is a part of nearly every meal, and it is grown on a majority of the
rural Ruins. Some important facts about rice in Indian scenario are
Agriculture is the main source of income for families in
India.Farms cover over half the land and almost three-quarters
of that land is used to grow the two major grains and wheat.
India is the second leading producer of rice in the entire world .
lndias annual rice production is around 85-90 million tons.
Annual consumption is around 85 million tons.
In India, rice is cultivated in both seasons-winter and summer.
West Bengal,Uttar pradesh, Andra pradesh, Punjab, Tamil
nadu, Bihar, Orissa, Assam, Karnataka and Flariyana are the
major producing states. More than 50% of total production
comes from the first four states.
Food Corporation of India purchased around 20 to 25% of the
total rice production in the country both under levy from the

rice mills and directly in the form of paddy from the farmers at
minimum support prices announced by the government.
More than 4000 varities of rice are grown in india.
India is the worlds largest exporter of basmati rice to Saudi
Arabia and other Middle East Countries, Europe, and the
United states.
India has the potential to export one million tons of basmati
Major destination for Indian non-basnnati, white/parboiled rice are
Bangladesh. Indonesia, Philippines, Nigeria, South Africa, Ivory
Coast and other African countries.
From a nation depends on food important to feed its population ,
India today is self sufficient in grain production and also has a
substantial reserve. The progress made by agriculture in the last
four decades has been one of the biggest success stories of free

Rice is the staple food of Keralities from time immemorial. It
has been essential ingrediant of a malayales diet especially for the
old and middle aged generations. Even in the new generations in
Kerala and abroad promotes malayalee food mainly made of rice
and its different forms. Paddy is the main crop in kerala.
Earlier paddy processing was concidered as a house hold
business. Paddy processing was done by the female members of
the family. As time passed with the increase in production and
productivity as well as the change of joint family system to nuclear
family system rice mills on modem began to ourish. With the
introduction of high yielding varieties which in rum resulted in a
massive increase in productivity led to the emergence of middle
men in paddy trading. Bulk purchase were made by them on behalf
of the producers and products were own from production centers
to the trading centers to the trading centers this in turn
necessitated the establishment of sophisticated modern rice mills.

Paddy is cultivated in almost all districts in Kerala. Rice

production has experienced continuous decline in area over 2
decades. Rice production touched its of around 14 lack tones in the
mid-seventies. Even at its peak level internal production was hardly
sufficient to meet 50% of states requirment. Consequent to the
enormous pressure which high salute crops like coconut, banana,
pineapple and rubber have exerted area under paddy has declined
from its peak coverege of 8.81 lack hectares in mid-seventies to
3050 lack hectares in 2003-2004.
The production of rice is declining every year. This is an
indication of the problems faced by the cultivator of Kerala. If
proper measures are not being taken to overcome this situation
then this sector will be abolished from the state within no time. The
main problem concerning these cultivators are high cost of
cultivation and less return for their products the products from other
states is also affecting them adversely.
Season-wise data shows that the reduction in area under rice
was entirely during the mundakan season whores during Viruppu
and puncha season 2003 -2004 the negative trends has been
reversed the data also reveal that out of around 1.70 lack hectare
of double area nearly 50000 hectare are remaining follow during
the virippu season. The single cropped lands of kuttanad and kole
were only one crop is raised during puncha season also offer scope
for additional cropping. Among the three season puncha season
records the highest productivity and the trend is continuing.
The gap between demand and supply of food grains which was
around 50% till the mid-seventies started there after consequent to
the large scale shift in paddy lands of cultivation of other more
remunarative crops like coconut. The conversion of paddy land
made this sector weaker and people found this method more
economical because it requires less effort and cost than rice. The
conversion of paddy land made this sector weaker and people found
this method more economical because it requires less efort and cost
than rice this gave way for the other states to conquer the rice
market of Kerala with no obstacles and in a short span of time.