It was observed from Table 1 among the 60 sample farmers 45 per cent of farm house holds had medium size family with four to five persons per family, 46.47 per cent of the farmers were in the age group between 40 to 50 years, 73.33 per cent of farmers had only secondary level of education 46.67 per cent farmers had the experience of more than 20 to 30 years. Regarding size of land holding, 45 per cent farmers are small farmers having less than two hectares of land.

Cropping pattern observed in sample farms for the year 2016-17 is presented in Table 2. It clearly showed that in the study area major area was under paddy crop i.e. 61.42 per cent. This is mainly due to the environmental and climatic factors that were highly suitable to grow paddy crop. Next to paddy, sugar cane and black gram occupied the major area of 19.72 per cent and 7.94 per cent, respectively. Crops such as groundnut, gingelly, banana, watermelon and green gram were also grown in small areas.

Table 3 shows the average price received by producer for paddy (without any value addition such as drying, storage and etc.) was ₹ 16166. Total cost incurred by rice miller was ₹ 2408 to produce 600 kgs of rice, 150 kgs of bran, 100 kgs broken rice and 100 kgs of husk from paddy. The value addition gained by rice miller was 26.42 per cent.

Note: RBCO- Rice Bran Crude Oil, RBRO- Rice Bran Refined Oil, DORB- De Oiled Rice Bran.

Rice bran crude oil industry processed 150 kgs of rice bran to produced 12, 83 and 55 kgs of rice bran crude oil, de oiled rice bran (nice) and de oiled rice bran (rough), respectively. The gross return received by rice bran crude oil industry was ₹ 1131. The net value addition gained by rice bran crude oil industry was 0.16 per cent.

The rice bran refined oil industry produced 9.6 kgs of rice bran refined oil, 0.96 kgs of wax and 1.44 soap stock from 12 kgs of rice bran crude oil. The gross return received by rice bran refined oil industry was ₹ 713 and average price paid by trader was ₹ 653. The average price paid by retailer was ₹ 682 and ₹ 22, 200 for rice bran refined oil and rice.

Table 4 presents the flaked rice processor produced 550 kgs of flaked rice, 240 kgs of bran, 70 kgs of broken rice, 70 kgs of flour and 70 kgs of waste from one tonne of paddy. The total cost incurred by flaked rice processor was ₹ 18,001, which included purchasing price of paddy. Gross return and value addition gained by flaked rice processor were ₹ 20,820 and ₹ 2819 (14.71 per cent) per tonne of paddy respectively. The average price paid by retailers was ₹ 18,150 for 550 kgs of flaked rice.

Note: RBCO- Rice Bran Crude Oil, RBRO- Rice Bran Refined Oil, DORB- De Oiled Rice Bran, FRI- Flaked Rice Industry.

The rice bran crude oil industry produces 19 kgs, 132 kgs and 89 kgs of rice bran crude oil, de oiled rice bran (nice) and de oiled rice bran (rough) from 240 kgs of bran, respectively. The value addition gained by the rice bran crude oil industry was ₹ 54 with gross return of ₹ 1799. The rice bran refined oil industry produced 15 kgs of rice bran refined oil, 1.6 kgs of soap stock and 2.4 kgs of wax from 19 kgs of rice bran crude oil. The gross return received by rice bran refined oil industry was ₹ 1107 and value addition was ₹ 15 (0.08 per cent) per tonnes of paddy. The average price paid by trader was ₹ 1020 for 15 kgs of rice bran refined oil. The average price paid by retailer was ₹ 1065 for rice bran refined oil.

Table 5 shows the recovery of main and by products of paddy having various processing process. The recovery of main and by product during rice milling was 60 per cent of rice, 10 per cent of broken rice, 15 per cent of rice bran, 10 per cent of husk and 5 per cent waste from one tonne of paddy. The consumers of rice millers were wholesaler, retailer, ready to cook food manufactures and rice bran crude oil industries. From 15 per cent of rice bran, the rice bran crude oil industry produces 2 per cent of rice bran crude oil and 13 per cent de oiled rice bran. The consumers of rice bran crude oil industry were rice bran refined oil industry, cattle feed industry, poultry feed industry and animal feed industries. Rice bran refined oil industry produced 1.8 per cent of rice bran refined oil, 0.08 per cent of wax and remaining 0.12 per cent was soap/ stock or acid oil from one tonne of rice bran crude oil. The consumers of rice bran oil industry were soap manufacturers, traders, retailer, paper industry, textile industry.

Note: …….. Value chain for unbranded ADT 37 paddy variety and ……. Value chain for flaked rice industry.

Note: RBCO- Rice Bran Crude Oil Industry, RBRO- Rice Bran Refined Oil Industry, FRI- Flaked Rice Industry

The new value chain model emerged out of the study is presented in the Fig. 2. In the model various aspect of rice marketing, processing, value addition etc, was incorporated to add maximum value to the paddy and enhance the consumer satisfaction. In the model various stake holders from farmers to ultimate consumers were taking part. At each and every stage of paddy value chain value will be added in the model. Fig. 2:

Proposed Value Chain for Paddy in the Study Area

The cost and returns of existing and proposed value chain model is presented in Table 6. In comparison with the existing value chain in the proposed value chain model the village traders and wholesalers were eliminated. In rice milling due to increase in the recovery percentage the net value addition will be increased from ₹ 4064 in existing model to ₹ 6115 in proposed model. At present there are two processing industries for rice bran oil production such as rice bran crude oil industry and rice bran refined oil industry. If one solvent extraction plant is used for this purpose the value addition can be increased manifold from ₹ 39 to ₹ 665 through solvent extraction plant. There was no small scale industry for processing the byproduct such as broken rice in the existing model. But in case of proposed model the small scale industries give additional value addition of ₹ 410 per tonne of paddy. The value addition at retailer stage prices have increased from ₹ 950 for rice in existing model to ₹ 1220 in proposed model followed by rice bran refined oil value addition which can be enhanced from ₹ 9 to ₹ 40. Additionally the retailing value addition through ready to cook products will be added as extra to the worth of ₹ 80. To summarize the value addition in the existing value chain which was ₹ 5096 can be increase to ₹ 9530 through proposed model. Through the proposed model the value addition can be increased to the extent of 91.5 per cent.

Note: RBCO, Rice Bran Crude oil, RBRO, Rice Bran Refined Oil, RTC, Ready to Cook products.

The general value chain followed in the study districts reveals that, there is no much value addition at the farm level. In reality the value addition process begins from the rice miller, it has to be initiated from farm level like, production of high value rice variety, drying, storing etc, to increase the income of the rice farmers.

Value chain analysis is an effective source for market information. The information on the quality, variety, consumer preference etc, obtained from value chain studies has to reach all value chain actors to increase the benefits and efficiency of all stakeholders in rice value chain.

Quality is always important factor for preference of branded rice. Since the consumer are more health conscious, the rice millers have to focus on the quality aspect (such as less broken and policing) etc, to fulfill the consumer expectation.

Nowadays people are more health conscious and the consumers felt that rice bran oil is highly beneficial in day-to-day life. Hence there is need of more thrust and advertisement on the health benefit aspects of rice bran oil to attract more consumers, this will help the processors to scale up their production, in turn the cost of production would be reduced.