Enhancing Farmer Income through Value Addition to Rice in Khammam District, India

Rice is the staple food to half of world’s population providing more than one fifth of the calories consumed worldwide. Cereal grains are rich sources of phenolic compounds present in cell walls that help in combating many life style diseases occurring due to oxidative stress. Rice has been domesticated more than 10000 years ago but even today the farmers prefer selling freshly harvested paddy at a lower price. Few entrepreneurial farmers have come up with the idea of primary processing the paddy as semi polished and brown rice that can fetch them more profits along with providing health benefits. Each Kg of paddy, white, semi polished and brown rice cost Rs. 17 – 18.50, 46 – 48, 58 – 60 and 65 respectively. Similarly, one Kg of brokens get Rs. 15, bran Rs. 12 during season and Rs. 20 during off season.

The rice without any processing fetched the farmer profit of about Rs. 24400 to 36000 on an average per acre. But if the farmer subjected the rice to primary processing and sold as white, semi polished or brown rice, the profits generated per acre were Rs. 57156 – 66480 Rs. Rs. 82996 – 102400and Rs. 105910 – 120400 can be generated.

As can be seen the decrease in processing produced lower quantity of brokens and bran and income from them was comparatively lower than on processed rice indicating that there can be rise in income with minimal processing with added health benefits. There can an increase in profits by 4 to 5 times due to primary processing benefiting the paddy growers.

The white, semi polished and brown rice can increase the income of farmer by 76.92, 127.79 and 161.58% per one bag of paddy weighing 75 Kg. There was a significant decrease in brokens and bran produced in semi polished and brown rice that actually fetch less prize than the actual produce. The growing awareness of consumers towards health foods, improved eating habits and health consciousness is expanding brown rice market at higher compounded annual growth rate (CAGR) compared to overall rice market.