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A STUDY ON WORKING OF GURU NANAK RICE

MILLS

Submitted to
CHITKARA BUSINESS SCHOOL
in partial fulfillment of the requirements for the award of degree of
Master of Business Administration

Submitted by: Supervised by:


Vikash Garg Dr. Renuka Sharma
ROLL NO.1820982593 Professor (Finance) Chitkara

CHITKARA BUSINESS SCHOOL


CHITKARA UNIVERSITY
2018-2019
2018-19
Information Sheet

1) Name of the Organization – M/S Guru Nanak Rice Mills Khanna

2) Address of the organization – Kachaheri Road, Vill. Rattanheri,


Khanna.
3) Phone No. of the company – +91 9417060631
4) Date of internship commencement – 28th Nov.2018
5) Date of internship completion – 28th Dec .2018
6) Name of Organization guide – Mr. Manish Garg
7) Student’s name – Vikash Garg
8) Student’s Roll. No. – 1820982593
9) Student’s E-mail id –vigarg.mba18fin@chitkara.edu.in
10) Student’s mob. No - +91 7837390183
DECLARATION

I, "Vikash Garg”, hereby declare that the work presented herein is


genuine work done originally by me and has not been published or
submitted elsewhere. Any literature, data or work done by others and
cited in the report has been given due
acknowledgement and listed in the reference section.

Name- Vikash Garg


Roll No. 1820982593
Date: ___________
TO WHOMSOEVER IT MAY CONCERN

This is to certify that the project titled “study of working in Rice Mill”
carried out by Mr. Vikash Garg, S/o Mr. Om Parkash Garg has been
accomplished under my guidance & supervisions a duly registered MBA
student of Chitkara University. This project is being submitted by him/her
in the partial fulfillment of the requirements for the award of the Master
of Business Administration from Chitkara University.

His dissertation represents his original work and is worthy of


consideration for the award of the degree of Master of Business
Administration.

Mr. Manish Garg


(Partner)
ACKNOWLEDGEMENT

This project was a golden opportunity for learning and self-development.


I consider myself very lucky and honored to have so many wonderful
people those lead me through in completion of this project. I extend my
gratitude to Chitkara Business School for giving me this opportunity. I am
very grateful to Dr. Renuka Sharma who was my guide during the
development of this project and it was her guidance and assistance which
helped me in completing my project and I am thankful for her support and
friendly guidance. I would also like to express special thanks to my
supervisor Mr. Manish Garg for his guidance, support and supervision in
completion of this report. I would like to thank all my colleagues with
whom I worked together during the Internship program. Also, I would like
to thank the God Almighty. His blessings help me everywhere in my life.

(Vikash Garg)
EXECUTIVE SUMMARY

This report is all about my internship in M/S GURU NANAK RICE


MILL. My objective is to share my experience during internship period.
This report is the description and summary of my work which I have done
in GURU NANAK RICE MILL. It was a great experience for me to work
here. My theoretical and practical knowledge related to accounts is
helping me a lot. Through this project report, I have studied about the
working of Rice Mills. This report has been made to see how the Working
is done in GURU NANAK RICE MILLS.
CONTENTS
Sr. No. Particulars Page No.
1 Introduction 9
2 Overview pf Rice Milling 10
Industry in India
3 Description of Rice Milling 10
Operation
4 Importance of Rice Milling 11 to 12
5 Status of Rice Milling Units in 13
India
6 History of Rice, 14 to 16
Nutritional Information
7 Part-1 17
Introduction to the Organization
8 Background of the Organization 18
9 Location of the Organization 18
10 Organizational Chart 18
11 Goal and Objectives 19
12 Scope of the Study 19
13 Product profile of the 20 to 21
Organization
14 SWOT Analysis 22
15 Rice Milling Plant 23
Manufacturing Process
16 Corporate Vision 24
17 Corporate Mission 24
18 Industry Environment 25
19 Market Competition 26
20 Political Environment 26
21 Economic Environment 27
22 Strategies 28
23 Segmentation 29
24 Government Policies 30 to 31
Part-2
Identify the Problem Area and
Find the Solution for
Improvement
25 My Role During Internship 32 to 37
26 Statement of the Problem 38
27 Recommendations 38
28 Limitations 39
29 My Learning from Internship 39
INTRODUCTION

Rice is the seed of the monocot plant Oryza sativa (Asian rice). As a cereal
grain, it is the most widely consumed staple food for a large part of the
World's human population, especially in Asia and the West Indies. It is
the grain with the second highest world-wide production, after Maize
(corn). Rice is one of the most important food crops of India in terms of
area, production and consumer preference. China and India contributed
30.25 per cent and 22.43 per cent respectively of the World’s rice
production in 2011-12 (Source: www.drd.dacnet.nic.in). India is the
second largest producer and consumer of rice in the World. Rice
production in India crossed 100 million tonnes in 2011-12 accounting for
22.88 per cent of global production. In some states of the country, viz.,
Andhra Pradesh, Kerala and West Bengal, rice is a monoculture crop and
the source of prosperity and livelihood of a majority of the population.
Andhra Pradesh ranks third in terms of the nation's rice-growing area
(47.52 m ha) but second in terms of rice production (144.2 m tonnes) in
2010 -11 (Source: indiastat.com). Rice is the primary source of
carbohydrates and protein besides, rice also contains small quantities of
fat, ash, fibre and moisture. It has very high calorific value (363 K cal)
than any other cereal crop with easily digestible carbohydrates (80.40 per
cent) and high quality protein (6.76 per cent) with biological value as high
as egg protein, due to high content of amino acids. Vitamins and mineral
are present largely in bran and germ. Rice is obtained by milling paddy.
The practice of milling is as old as the cultivation of rice itself and finds
reference even in Vedic literature. Different types of milling equipments
for shelling /polishing of rice existed in Indian homes many centuries ago.
The discovery of parboiling was one of the most important achievements
in food science and the credit for this discovery goes to India.

OVERVIEW OF RICE MILLING INDUSTRY IN INDIA

Rice milling is basically an agro based industry. The Small Industries


Development Organization (SIDO) of Ministry of Small Scale Industries
(SSI), Government of India is the key agency responsible for planning,
co-ordinating, monitoring and development of rice mills in the country.
The Government of India has announced various schemes, policies
providing direct and indirect assistance for promotion of this sector. At
present, the rice milling industry has a turnover of more than Rs. 25,500
crores per annum. The paddy processed is about 85 million tonnes per
year and provides staple food grain and other valuable products required
by over 60 per cent of the population. Over the years, the total number of
all types of rice mills has increased. In 2006-07, there were 1,54,225 rice
mills in India which included 97,117 hullers, 6,705 shellers, 9,890 hullers
cum shellers and 40,513 modern rice mills.

DESCRIPTION OF RICE MILLING OPERATION

Paddy in it’s raw form cannot be consumed by human beings. It needs to


be suitably processed for obtaining rice. Rice milling is the process which
helps in removal of hulls and barns from paddy grains to produce polished
rice. Rice forms the basic primary processed product obtained from paddy
and this is further processed for obtaining various secondary and tertiary
products. The basic rice milling processes consist of pre-cleaning,
destoning, parboiling, husking, husk aspiration (separating the husk from
brown rice/ unhusked paddy), paddy separation (separating the unhusked
paddy from brown rice), whitening (removing all or part of the bran layer
and germ from brown rice), polishing (improving the appearance of
milled rice by removing the remaining bran particles and by polishing the
exterior of the milled kernel), length grading (separating small and large
brokens from head rice), blending (mixing head rice with pre-determined
amount of brokens, as required by the customer), weighing and bagging
(preparing the milled rice for transport to the customer), etc.

IMPORTANCE OF RICE MILLING

Milling is the process where in the rice grain is transformed into a form
suitable for human consumption. Therefore, milling has to be done with
utmost care to prevent breakage of the kernel and improve the recovery.
Brown rice is milled further to create more visually appealing white rice.
After harvesting and drying, paddy is subjected to primary milling
operation which includes de-husking as well as the removal of bran layers
(polishing) before it is consumed. In this process, the rice which is
obtained after milling is called raw rice. Another process through which
rice is obtained after milling is called "Parboiling Rice". Nearly 60 per
cent of the total rice produced in India is subjected to parboiling. Rice
milling losses may be qualitative or quantitative in nature. Quantitative or
physical losses are manifested by low milling recovery while low head
rice recovery or high percentage of broken kernel reflects the qualitative
loss in rice grains. Rice has potential to be used in a wide range of food
categories. Besides, having nutritional and medicinal benefits, the by-
products of rice are equally important and beneficial. By-products from
rice create many valuable and worthwhile products. The inedible parts are
discarded through the milling process and the edible part could be
transformed into some of the following products like rice bran, broken
rice, rice flour, rice milk, rice pudding, etc. Rice is also used in beverage
making, rice paper, rice glue, rice cakes, rice vinegar, rice soya milk and
red yeast. The by-products which one can get from paddy milling are rice
bran and husk. The rice bran is a pericarp or outer cuticle layer that
remains beneath the hull. The amount of rice bran is approximately five
per cent of paddy processed. It gets removed during the milling process.
About two decades back, rice bran was considered almost a waste and
hence most of it was burnt. It is now viewed to have high nutritive value.
Being rich in protein and natural B- Vitamin, rice bran is used as a cattle
feed. The rice bran processing has now gained momentum, with
increasing consumer demand for rice bran oil, extracted from rice bran.
Paddy husk contains higher silicon (18 per cent) which is harmful to
digestive and respiratory organs. East Godavari is one of the major paddy
growing areas and it has the highest number of rice mills in the state. The
district consists of 550 rice mills which includes modern and traditional
mills. The financial management is considered as the backbone of a firm.
So, proper financial management is a pre-requisite for success of any
business. Keeping in view the above issues, a modest attempt was made
to analyze the business performance of rice mills in East Godavari district
of Andhra Pradesh.
The specific objectives of the study were
 To analyze the investment pattern of rice mills.
 To analyze the business performance of rice mills.
 To analyze the constraints faced by rice mills.
The hypotheses of the study were
 There is an increasing trend in the investment pattern of rice mills.
 The liquidity status of the rice mills is sound.
 The rice mills do not have any constraints.
STATUS OF RICE MILLING UNITS IN INDIA

 Rice milling is the oldest and the largest agro processing industry of
the country. At present, it has a turnover more than the 25,500/-
crore per annum. It processes about 85 million tonnes of paddy per
year and provides staple food grain and other valuable products
required by over 60% of the population. Paddy grain is milled either
in raw condition or after par-boiling, mostly by single hullers of
which over 82,000 are registered in the country. Apart from it there
are also a large number of unregistered single hulling units in the
country. A good number (60%) of these are also linked with par-
boiling units and sun-drying yards. Most of the tiny hullers of about
250-300 kg/hour capacities are employed for custom milling of
paddy. Apart from it double hulling units number 2,600 units, under
run disc shellers can cone polishers numbering 5,000 units and
rubber roll shellers cum friction polishers numbering over 10,000
units are also present in the country.

 Further over the years there has been a steady growth of improved
rice mills in the country. Most of these have capacities ranging from
2 tonnes /hr to 10 tonnes /hr. The scenario & status of these
industries of the district has been highlighted in terms of its product
range, growth / trends, trade, investment, technology and other
significant issues which project the clear cut scenario of these
industries.
THE HISTORY OF RICE

 According to the Microsoft Encarta Dictionary (2004) and the


Chambers Dictionary of Etymology (1988), the word ‘rice’ has an
Indo-Iranian origin.
 Rice is a grain belonging to the grass family. Rice is consumed by
the nearly one-half of the entire world population and many
countries like Asia, are completely dependent on rice as a staple
food.
 Rice is the one of the few foods in the world which is an entirely
non-allergic and gluten-free.
 There are many unproven mythological tales as to how rice came to
be, through historians hold little or no stock in any. Most believe the
roots of rice come from 3000 BC India, where natives discovered
the plant growing in the wild and began to experiment with it.
Cultivation and cooking methods are thought to have spread to the
west rapidly and the medieval times, southern Europe saw the
introduction of rice as a hearty grain.
 The first cultivators of rice in America did so by accident after a
storm damaged ship docked in the Charleston South Carolina
harbor. The captain of the ship damaged handed over a small bag of
rice to a local planter as a gift, and by 1726, Charleston was
exporting more than 4000 tons of rice a year.
Today
 Today, rice is grown and harvested on every continent except
Antarctica, where conditions make its growth impossible. The
majority of all rice produced comes from India, China, Japan,
Indonesia, Thailand, Burma and Bangladesh. Asian farmers still
account for 92-percent of the world’s total rice production. More
than 550 million tons of rice is produced annually around the globe.
In the United states, farmers have been successfully harvesting rice
for more than 300 years. There are thousands of strains of rice today,
including those grown in the wild and those which are cultivated as
a crop.
 Rice is the staple food for 65% of the population in India. It is the
largest consumed calorie source among the food grains. It is the
largest consumed calorie source among the food grains. India is the
second largest producer of rice in the world next to China.
 West Bengal is the leading producer of paddy in the country. It
accounts for 16.39% of the total production, and the other leading
states are Uttar Pradesh (13.38%), Andhra Pradesh (12.24%),
Punjab (9.47%), Orissa (7.68%) and Tamil Nadu (7.38%); the
remaining states account for 33.45% of the production.
 Indian Basmati Rice has been a favorite among International rice
buyers. Indian rice will be highly competitive and has been
identified as one of the major commodities for export. This provides
us with ample opportunity for development of rice based value-
added products for earning more foreign exchange.
 Modern rice mills are having high capacity and are capital intensive,
although efficient have been developed obtaining rice by processing
the paddy from its raw form are playing the significant role in the
development of agro processing industries.
 So I choose my topic as an organizational study at Guru Nanak Rice
Mill to get an integrated understanding of the organization and its
work culture.
NUTRITIONAL INFORMATION

 Rice remains a staple food for the majority of the world’s


population.
 More than two-thirds of the world relies on the nutritional benefits
of rice.
 It is a complex carbohydrate containing only 103 calories per one-
half-cup serving.
PART-1

INTRODUCTION TO THE ORGANIZATION

Guru Nanak Rice Mill is a well-known Rice mill in the Khanna region.
Rice mills are commonly referred to as ‘Shellers’ in rural areas. They act
as a middlemen of converting the paddy into the rice for the government.
The government purchase the paddy from the farmers through
middlemen, then they allot the paddy in the shellers. The Rice Millers has
to convert the paddy into the rice and deliver the rice to the government.
They also arrange the required equipment, machines and labor for
weighing, filling and stitching the rice bags for which the buyers pay as
per the rates prescribed by the government. Guru Nanak Rice Mill has a
leading position in the market with its main objective to carry out the
activity of hulling paddy to obtain Rice, Broken Rice, Rice Bran, Paddy
Husk etc.
The organization has managed to face the increasing pace of this business.
With the advancement in technology Rice Miller is able to convert the
paddy in much less time. The organization has adequate resources to
manage this crowd in a satisfactory manner due to which they have been
able to capture major portion of the market

BACKGROUND OF THE COMPANY

M/s GURU NANAK RICE MILL is a Partnership firm constituted on 19


February, 1999. The Partners of the firm are namely Smt. Kamlesh Rani,
Sr. Prem Nath Garg, Sr. Sushil Garg and Sr. Manish Garg. Right now
organization is operating in both markets being the market leader in the
latter one.
All the partners have experience in the said business of Rice
Manufacturing and Trading. The rich experience of the partners, in the
business of Rice Industry has resulted in the outcomes of this constitution.

LOCATION OF THE COMPANY

The unit has been set up at Kachaheri Road, Vill. Rattanheri, Khanna.
ORGANIZATIONAL CHART

Owner of the organization plays the role of manager. Permanent staff


includes Accountant and a helper. Accountant is involved in managing
daily transactions. Labor is called upon at peak times that are when
government send their paddy in the rice mill. A contractor is hired to
provide the required labor.

GOALS AND OBJECTIVES

 To establish long term relationship with the customers.


 Enhance the quality of products thereby utilizing the modern
technology in a better way.
 To induce energy conservation and pollution control system.
 To adopt eco-friendly technologies and maintain environmental
health.
 To act as a catalyst to accelerate industrial development of the
region.

SCOPE OF THE STUDY

The present study critically analyzed the business performance of rice


mills. The study analyzed the investment pattern of rice mills; financial
efficiency of rice mills by using financial ratios and the constraints
faced by rice mills. The study attempted to suggest policy measures to
improve the status of rice mills.
PRODUCT PROFILE OF THE COMPANY

The products to be obtained through paddy firm the rice milling plant are
as follows:
Serial no. Particulars
1 Rice
2 Paddy Husk
3 Rice Bran
4 Broken Rice

Paddy when milled usually yields apart from marketable rice (head rice,
medium rice and big broken rice) about 22% husk and 9% bran. The
economic utilization of the byproducts is essential for proper viability of
the industry.
RICE

The product of Guru Nanak Rice mill remains only the rice, but it has
the following different variables of rice available at reasonable prices on
the basis of needs, wants and demands of the customer.

PADDY HUSK
Husk is not edible, even by animals. Husk has many possible uses. But
the most practical, profitable use is as fuel, particularly in the rice mill.
Parboiling and drying of paddy needs heat energy. Husk is used as fuel
in boilers to produce steam and hot air required for the purpose. Husk
has colorific value of about 3000 keal/kg (nearby one third of the
mineral oil and half that of coal). The other uses of husk are loose
particle boards and insulating material in building and cold storages, in
shipping and packing material etc. Fully burnt white ash of husk can be
used for manufacturing sodium silicate, silica gel, insulating bricks and
also used as diluents in manure etc.

RICE BRAN

Rice bran is the most valuable by product of rice milling industry. It


contains 12% to 15% protein, 14% to 20% of oil and is rich source of
vitamin B. Bran is utilized in several ways. It is used as feed for animals.
It is used as more valuable source of vegetable oil and should be first
solvent extracted to recover the oil. The extracted bran is used as animal
feed.

BROKEN RICE

The medium and large broken rice is mixed with the head rice
depending on the marketing requirements. The small broken rice that is
separated during grading of milled rice is sold as such or used for rice
flour making.
SWOT ANALYSIS

Strengths:-

 Business Location
 No Labour union
 Large Demand
 Availability of Finance
Weakness:-

 Products similar to competitors


 Lack of Patent protection
 A weak brand name
 Limited Human Resources and staff
Opportunities:-

 Government Regulation softening


 Increasing Population
 Development of New Technology
 More Demand
Threats:-
 Increase in Farming Cost
 New Substitute products
 Lack of Product promotion
 Storage and Distribution
 Production of Paddy is Decreasing

RICE MILL PLANT MANUFACTURING PROCESS


It includes several steps :-
Pre-cleaning: Removing all impurities and unfilled grains from paddy
Step 2
De-stoning: Separating small stones from paddy
Step 3
Husking: Removing Husk from paddy
Step 4
Husk Aspiration: Separating the Husk from brown rice/ unhusked
paddy
Step 5
Whitening: Removing all or part of the bran layer and germ of brown
rice
Step 6
Polishing: Improving the appearance of milled rice by removing the
remaining bran particles and by polishing the exterior of the milled
Kernel
Step 7
Length Grading: Separating the small and large broken from head rice
Step 8
Blending: Mixing the head rice with predetermined amount of broken,
as required by the customer

Step 9
Finally, weighting and bagging. This is the last step in rice mill plant
operation. Preparing the milled rice for transport to the customer

CORPORATE VISION

“To achieve a national dominance in the rice industrial sector”


Guru Nanak Rice Mill has been investing in developing competences such
as the automation of each processing’s of the production to deliver the
superior quality with total customer orientation.

CORPORATE MISSION

“Empowerment through customer satisfaction thereby providing good


quality products at an affordable price”
INDUSTRY ENVIRONMENT

Paddy in its raw form cannot be consumed by human beings. It needs to


be suitably processed for obtaining rice. Rice milling is the process which
helps in removal of hulls and barns from paddy to produce polished rice.
According to Rice milling Industry (Regulation) Act of 1958, rice mill
means the plant and machinery with which and premises including
precincts thereof, in which or any part of which rice milling operation is
carried on. Milling is a general term used for processing of food grains
into consumable form keeping in mind the nutritive quality of the product
as well as consumer's preference. It facilitates storage of food grains and
reduces wastage. Rice milling industry is a raw material- intensive it has
direct dependence on agricultural production. It is true that the increase in
production of paddy gears the milling activity, the growth and expansion
of the paddy processing units also encourages production of paddy and
thereby raises rural-led employment and income. Thus, the growth of the
rice milling industry has spread effects -25 It is a labour-intensive
industry. Except in the case of rice mills, which use mechanical dryers
and modem parboiling units, there is heavy labour absorption in all the
rice mills and it seems that the rice milling industry participates in the
national fight against unemployment. This industry produces basic mass
consumption good, for which demand from low and middle income
groups both in rural and urban areas have emerged. The rice milling
industry is as old as the cultivation of paddy and hence it is regarded as
one of the oldest food processing industries in India. 64 Processing of
paddy, by the addition of further stages of processing and adoption of
more and more advanced technology, requires large capital outlay and this
would imply marked change in the organizational pattern of the rice
milling industry. In terms of employment, rice milling industry has special
significance for it employs more women than men. This is invariably true
of the mills, which depend solely on the sun drying method for drying
paddy. In the case of modern rice mills they give wide employment
opportunity to men. Rice milling industry, being an agro-based industry,
plays a crucial role in accelerating the agricultural development by
creating backward linkages (supply of credit, inputs etc.) and forward
linkages (processing, marketing), adding value to the farmer's produce
and opening up the possibility for exports. This industry, through its
processing operation gives more nutritive food and conserves rice by way
of recoveries. It also increases the shelf life of rice. Rice milling industry
also helps in saving foreign exchange through the supply of rice bran oil,
in the absence of which, edible oil will have to be imported. Rice forms
the basic primary processed product obtained from paddy and this is
further processed for obtaining various secondary and tertiary products.

MARKET COMPETITION

There are large number of rice millers in the city. Guru Nanak rice mill
adopted various strategies to retain and/or expand their market share.
India rice milling market consists of a large number of players as the rice
milling industry in India has seen tremendous growth in last decade. The
players adopted various strategies to expand their global footprint and
augment their market share. Thus, the government gets best rice quality
in given time.

POLITICAL ENVIRONMENT

 The Indian government is a large buyer of rice. Its stated objectives


for doing so include (i) providing price support to farmers, (ii)
distributing subsidized food grain to the poor through the targeted
public distribution system (PDS), and (iii) maintenance of buffer
stocks to ensure price stability and food security
 On the basis of Rice Milling Industry Regulation Act, 1958, the
officers give the regular visit in the rice mill.
 The Rice millers sold their products like paddy husk, rice bran and
broken rice with the help of the brokers.
 The particular rates are allocated by the government for the rice
products.
 Government also give the transportation fees to the rice millers for
their services to the government.
 Government has also give the order to the rice millers to allocate
the cameras at front gate, machinery room, rice room etc.
 The main aims of the various regulations are to check the
exploitation of producers and consumers by private traders through
collusion and hoarding, to stabilize prices, and to raise the standards
of markets and improve their performance.

ECONOMIC ENVIRONMENT

 The Rice millers have the good relation with the commission agents,
so they get the good quality paddy from the grain market.
 Usually Limits in bank is the major source of fund for rice millers.
 The administration should constitute a committee comprising
millers from the market to help them conceptualize, construct and
regulate the proposed market.
 Recently, there was a major development of rice industry in Khanna.
Crores were spent to upgrade the local infrastructure
.
STRATEGIES

Market strategies

 M/S GURU NANAK RICE MILLS enjoy good reputation in


nearby villages so they need to spend less on their marketing.
 The main strategy for organization which contributed to their
success is to maintain healthy relations with their age old
clients. Thus, even the relatives of commission agents deal
with them.
 The rice millers directly sold the paddy husk, rice bran to the
furnaces and poetry farm, so that the brokers will be
eliminated.
 They are available on even holidays and even non-working
hours.
Financial strategies

 M/S GURU NANAK RICE MILL provide money to the


farmer right after the sale of his crops. This provides them
edge over competitors.
 They arrange funds from their limit in bank. Though they
have to pay interest in bank but still to cope the
competition in market.

Human resources

 M/S GURU NANAK RICE MILLS hire relatives of old


employees. Thus this motivates old employees and in
this manner organization can hire trust worthy
employees.
 The organization delegates some of its powers to
employees. Thus, this motivates employees to work.
 The organization recognizes potential of each
employee and work is given accordingly.
 The organization also supports its employees in getting
a better job like government job.
 The organization hires fresher so that they can mold
him the way they like.
 Organization pays handsome salary and wages to its
employees and labor.
 Labor plays a vital role in this business, If they leave
the organization happily after a season, There are high
chances they will approach you in next season.

INDIA RICE MILLING MARKET– SEGMENTATION

The India Rice Milling Market can be segmented in to two key dynamics
for the convenience of the report and enhanced understanding;
Segmentation by Equipment - Rice Whitening Machinery, Pre Cleaner
Machinery, Paddy Separator Machinery, Length Grader Machinery, and
others
Segmentation by Capacity - 1 To 10 Ton, 10 To 20 Ton, and More than
20 Ton
Segmentation by Regions: North America, Europe, APAC and Rest of the
World.
GOVERNMENT POLICIES

The Punjab Government in a process not to permit more rice -Sheller


industries in Paddy deficit area in the State. Near about 130 applications
have been received for the licence to start new rice mill. The government
is likely to implement this policy from 2018-19. Although the efforts are
being made to save the existing rice Sheller industries, but the steps will
be taken to stop the corrupt practice in custom milling where there is
allegedly enough graft game is played to store the paddy from paddy
efficient area to paddy deficient area. Sources in the department told that
the Government had sought legal opinion from the Advocate General
office, which has endorsed the stand of the Punjab Government.
According to information, there are 3600 rice Sheller across the State, but
only 3,150 Sheller are active, which had made business with the Punjab
Government in the last season. There were 1400 rice Sheller which had
no business for the last many years and these mills have been closed since
last few years. There is outstanding of Rs 200 crore toward these mills.
Government had offered one time settlement scheme (OTS) for such
mills, but only 250 mills have come forward to settle their outstanding.
With the efforts of Food and Civil Supply department, Rs 25 crore has
been recovered from closed rice Sheller owners. Other-hand the
Controller and Auditor General (CAG) has held responsible the Food and
Civil Supply Department for failure to get paddy milled with stipulated
times which resulted into a financial loss of thousands of crores. Sources
told that more than 1900 rice Shellers are in paddy deficient area, where
the production of this crop is below norms. But transforming of paddy
from surplus area to paddy deficient area such as Patiala, Sangrur, Mansa,
Barnala and Ludhiana, had cost much as the Government had to allot
procurement share for custom milling. When contacted to Food and Civil
Supply Minister Bharat Bhushan Ashu, he told that a report has been
prepared in this regards and will be tabled before the CM, who will decide
its fate. While, the President of Rice Miller Association Punjab Gian
Chand Bhardwaj said if new rice mills are permitted to be installed in
paddy deficient area, there will be situation of hue and cry between
millers.
PART-2

IDENTIFY A PROBLEM AREA AND FIND


SOLUTIONS/SUGGESTION FOR IMPROVEMENT

My Role During Internship

My role during this internship was to work with the accountant of M/S
GURU NANAK RICE MIL. During this internship I got a chance to learn
so many things. I got a chance to experience how rice mill market operates
on ground level. During this internship I interacted with other rice millers
and understood the role of rice millers in the market. I also got a chance
to apply my accounting knowledge which I have acquired over the years
during this internship.
During first few days I observed the work of accountant. Slowly, When I
gained confidence Even I was allowed to do work under his guidance.
Entry for every transaction was recorded in register after that these entries
were made in Computer. M/S GURU NANAK RICE MILL use “Visual
Catpro” software to manage their Accounts. I even used to visit the
warehouse. I used to visit bank for various purposes for organization.
During peak time, Accountant is supposed to do lot of paper work. It
includes making and maintain:
1. Outgoing Register
2. Incoming Register
3. Rice Register
4. Paddy register
5. Rice bran Register
6. Rice Own Register
7. Paddy Own Register
I made all three forms and even maintained heap register during my
internship. Information regarding these documents is mentioned in
coming pages along with their photograph.

During my internship my most of the time passed working upon


these documents.

Outgoing Register

In these register, the accountant recorded the every transaction of goods


send by rice mill. The accountant has to maintain the register, so that the
payment is received. The daily gate pass book transaction is recorded
like
 Rice is send to the warehouse
 Paddy is sold to the furnaces
 Rice bran is sold to the poetry farm
 Rice is sold in the market

Incoming Register

In these register, the accountant recorded the every transaction of goods


came into the rice mill. The accountant has to maintain the register, in
which he record the every paddy came into the rice mill in starting year
from the grain market.

Rice Register

In these register, the accountant recorded the total rice production in the
rice mill. The accountant also recorded the daily production of the rice
mill in the register and he also subtract the rice weight which is send to
the government warehouse. The government provide the weight of the
rice to the rice millers online, so that they maintain their register.67% of
rice is produced from the paddy.

Paddy Register

In these register, the accountant recorded the total paddy send to the rice
mill. When the paddy is used to convert into the rice in the rice mill, the
accountant subtract the daily paddy usage.

Rice Bran Register

In these register, the accountant recorded the rice bran produced in the
process of converting the rice into paddy. 5.25% of rice bran is produced
from the paddy.

Rice Own Register

In these register, the accountant recorded the rice sold in the market. The
accountant record the every transaction of rice which is sold to the
wholesaler. Rice mill also store the rice to sell it in higher prices.

Paddy Own Register

In these register, the accountant recorded their own paddy purchase by


the rice mill for the sale of rice in the market. Rice mill also store the
paddy to sell it in higher prices.
During peak time, Accountant is supposed to do lot of paper work and
there are two type of bills:
 Tax free Cash bill
 GST Cash bill

Tax Free Cash Bill

These bill is used when the rice miller sold the tax free goods in the
market. Government make the list of goods which is tax free, so the rice
miller sold these goods in cash. For instance goods
like Paddy husk which is tax free.
GST Cash Bill
These bill is used when the rice miller sold the tax goods in the market.
Government make the list of goods which is having the certain
percentage of GST tax. For instance, goods like Rice Bran is sold in
particular GST percentage.
STATEMENT OF THE PROBLEM

1. The main problem faced by the rice millers is the moisture. Rice
millers have to send their rice to the government warehouse. But
the government has set the moisture limit of Rice. The rice
moisture is not more than 15, if it increases to 15 then the rice will
be rejected.
2. Officers usually take the high amount of corruption from the rice
millers. If the Rice miller refuse to give the bribe, then officer
don’t approve the rice.
3. Officers also don’t take the complaints of the rice millers seriously.
4. The work schedule consists of 3 shifts.
5. The rice milling industry has got enough growth potential
especially in terms of its currently adopted Japanese technology in
the whole process of production.

RECOMMENDATIONS

My observations during internship was:


1. Interaction of the industry with other rice miller associations for
the information exchange.
2. Entrepreneurship and motivation training programs for the
workers/ employees.
3. The most of the Rice Millers sell the goods on credit and invest
money in Fixed deposits to reap tax benefits. This blocks a portion
of money for a particular period. Rice Millers should find an
alternative to this. As their own money is blocked they have to
depend on bank limits for daily needs. They can depend on other
means to make more money. Rather than blocking money they can
invest some part of it in storing rice. As they are also a part of
grain market, when they think price of rice may rise in future they
can store it. They can even invest money in capital market. If they
want to invest in long term then rather than going for fixed
deposits they can go for bonds which yield high return.
4. The Rice association should be more united, so that if they take
decision not to give bribe to the officers then they stick on their
decisions.
5. The government should also provide the relief on moisture
problem, so that the rice millers don’t be depressed.

LIMITATIONS

1. RiceMillers want to stick to their age old methods of doing business


and do not want to change.
2. They do not take the recommendations seriously.
3. Mostly Rice Millers have less knowledge about capital market. 4.
Mostly Rice Millers are not aware about their rights.
5. Rice millers mostly depends upon their staff.

MY LEARNINGS FROM THIS INTERNSHIP

If we say farmers are the most important component of Indian Economy,


then Rice Millers are the one who serve as a gatekeeper for the Rice
market. Rather than thinking about abolition of Rice miller system,
Government should think about upgrading the system in rice mills.
Guru Nanak Rice mill is having the capacity and potential for
succeeding in its vision much sooner thereby producing and enhancing
the quality of the products by utilizing the current adopted Japanese
technology in a better way.