Cluster profile

Berhampur rice mills

Odisha

Berhampur
Certificate of originality
Original w ork of TERI d one und er the project “IN DIA: TERI-SDC
Partnership: Scaling up Energy Efficient Technologies in Sm all Enterprises
(EESE)”

This d ocum ent m ay be reprod u ced in w hole or in part and in any form for
ed ucational and non -profits purposes w ithout special perm ission, provid ed
acknow led gem ent of the source is m ad e. SDC and TERI w ould appreciate
receiving a copy of any publication that uses this d ocum ent as a sour ce.

Suggested format for citation

TERI. 2016
Cluster Profile Report – Berham pur rice m ills
N ew Delhi: The Energy and Resources Institute 8 pp.
[Project Report N o. 2014IE15]

Disclaimer
This d ocum ent is an output of a research exercise und ertaken by TERI
supported by the Sw iss Agency for Developm ent and Cooperation (SDC) for
the benefit of MSME sector. While every effort has been m ad e to avoid any
m istakes or omissions, TERI and SDC w ould not be in any w ay liable to any
persons/ organisations by reason of any mistake/ om ission in the publication.

Published by
T E R I Press
The Energy and Resources Institute
Darbari Seth Block
IH C Com plex, Lodhi Road
N ew Delhi-110 003
Ind ia

For more information

Project Monitoring Cell
TERI Tel. 2468 2100 or 2468 2111
Darbari Seth Block E-mail pm c@teri.res.in
IH C Com plex, Lod hi Road Fax 2468 2144 or 2468 2145
N ew Delhi – 110 003 Web w w w .ter i i n .org
Ind ia Ind ia +91 • Delhi (0)11
Contents
A CKN OWLEDGEMENTS
Overview of clu ster ...............................................................................................................................1
Prod u ct typ es and p rod u ction cap acities ...........................................................................................1
Raw m aterial u sage in clu ster ..............................................................................................................2
Prod u ction p rocess ................................................................................................................................3
Technologies em p loyed ........................................................................................................................3
Energy consu m p tion .............................................................................................................................4
Energy saving op p ortu nities and p otential .......................................................................................5
Major stakehold ers ................................................................................................................................6
Clu ster d evelop m ent activities ............................................................................................................6
Acknow ledgements

TERI places on record its sincere thanks to the Sw iss Agency for Developm ent and
Cooperation (SDC) for supporting the long -term partnersh ip project focusing on energy
intensive MSME clusters in Ind ia.

TERI team is ind ebted to Mr Shyam Lal Agraw al, State Presid ent of All Od isha Rice Millers
Association (AORMA), Od isha for provid ing support and inform ation related to rice m ills in
Orissa. TERI extend s its sincere thanks to Mr P K Gupta, Director (I/ c) and Mr C P Red d y,
Assistant Director, MSME-DI (Cuttack) for facilitating field visits.

Last but not least, our sincere thanks to MSME entrepreneurs and other key stakeholders in
the cluster for provid ing valuable data and inputs that helped in cluster analysis.
Berhampur rice mill cluster
Overview of cluster
Berham pur is a subd ivision of Ganjam district
located in w estern sid e of Od isha. There are
m ore than 750 industries in Berham pur
subd ivision, w hich includ es general
engineering, pharm aceutical, food , plastics,
cem ents and rice m illers. About 160 rice m ills
are engaged in prod ucing raw rice in this
cluster. Raw rice m illers use only electrical
energy for m otive load s in d ifferent process
steps. Different by-products generated in pad d y
processing includ e husk, bran and broken rice.
Source: Google M aps
The husk generated in raw rice m illing process is
com pletely sold as by-prod uct, unlike parboiled units w hich use husk as the m ain fuel in
boilers to raise steam . The average revenue generated from tonne of pad d y processed is Rs
13,000.

D etails of by-products in paddy processing

By-product Yield (kg/tonne) Rate (Rs/tonne) Revenue (Rs/ t paddy)
Bran 60 12000 720
Broken rice 40 10000 400
H u sk 170 1200 204
Total revenue from by-products 1324

Apart from rice mills, som e of the med ium and large ind ustries includ e Jayashree Chem icals
(P) Ltd (chem icals), Ind ian Rare Earth Ltd (refractories), Aska Spinning Mill (P) Ltd (textile)
and Virat Crane Agro Tech (P) Ltd (food ).

In Od isha, pad d y is procured from the farm ers through prim ary agricultural cooperative
societies on behalf of the state governm ent. The pad d y is d istributed to the registered rice
m ill for further processing. The rice from the m ills is taken back by the governm ent for
„public d istribution system ‟ (PDS) und er “Food and Procurem ent Policy” of the Governm ent
of Od isha. Interactions w ith state level ind ustry association ind icated that the processing
charges are fixed by the governm ent tim e to tim e to take care of the expenses tow ard s
processing of pad d y to prod uce rice.

Product types and production capacities

About 95% of the processed pad d y in Od isha is used for
prod ucing parboiled rice; the rem aining 5% prod uce raw rice.
Apart from rice, the im portant by-prod ucts from rice m ills
includ e husk (17%), w hich is used in house as boiler fuel and
bran (6%), w hich is procured by the bran oil manufacturer for
further processing. The rice m ills in Berham pur generally cater
to the PDS established by the state gov ernm ent of Orissa. Rice yield in paddy
processing

1
 Cluster profile - Berhampur rice mills

A m ajority of rice m ills in Berham pur d istrict are involved in prod ucing raw rice. Mass
balance of raw rice m illing process w ith yield and prod ucts are provid ed w ith figure.
Average raw rice yield is around 67% and about 17% husk is the m ain by prod ucts in
m illing raw rice from pad d y.

There are about 160 rice m ills located in d ifferent locality or

ind ustrial areas of Berham pur subd ivision . Based on the
installed capacity, the rice m ills are categorized into three
categories: (i) Pad d y processing capacity of 1.5 tonne per d ay
(tpd ), (ii) Pad d y processing capacity of 3 tpd and (iii) Pad d y
processing capacity of 6 tpd . Of these, 62% mills have pad d y
processing capacity of 1.5 tonne per d ay in one shift of 8 hour
operation. Majority of these mills falls und er MSME as d efined
by the Ministry of MSME. Figure provid es the d istribution of
d ifferent category of these m ills.
D istribution of rice
mills
More than 50 trad itional arom atic pad d y varieties w ith pleasant
arom a are grow n in various parts of the state. These ind igenous scented pad d y varieties
such as Kalajeera, Badsabhog, N eelabati, Krushnabhog, Govind abhog, Pad m akeshari,
Tulasiphoola, Chinikam ini, Saragdhuli, and Thakurabhog are pred om inant in coastal belts,
w hereas a few trad itional scented varieties such as Pim pud ibasa, Karpurakeli, Kalikati,
Laxm ibilas, Jubraj, Durgabhog, Karpurakranti, and Makarakand a are com m on in the
plateau regions of the state (source: http:/ / books.irri.org/ TechnicalBulletin16_content.pd f
assessed on 02 April 2016). A few popular variety of rice using above grow n pad d y in the
state are Sw arna rice, Ratna rice, White rice, Sonam asuri rice, Miniket rice, Basm ati rice,
Gobind obhag rice, etc. (source: http:/ / d ir.ind iamart.com / balasore/ rice.htm l as assessed on
02 April 2016).

In spite of the „sm all‟ category accounts for about 62% of the total installed rice m ills in
Berham pur cluster but their combined annual prod uction share is less than 18 % as can be
seen from the table.

Annual estimated production of rice mills

Category Installed capacity N umber of units Production
(tpd) tonne per year Share
Sm all 1.5 100 5400 17.5%
Med iu m 3 20 5760 18.5%
Large 6 40 20160 64%
Total 160 31320

Raw material usage in cluster

The m ajor raw m aterials used in rice m illing are pad d y supplied by the governm ent und er
PDS establishm ent. More than 0.031 m illion tonne of pad d y is processed in Berham pur rice
cluster d uring 2015-16.

2
 Cluster profile - Berhampur rice mills

The ind ustries are paid to the tune of Rs 200 Raw pad d y receive &
per tonne of pad d y tow ard s processing storage
charges; in ad dition the transportation cost is
also reim bursed to the ind ustries separately as
per the existing rates. The processing charges Blow er & Pad d y pre-cleaning
conveyor
are based on a yield ratio of 0.68 i.e. the rice
m ill w ill be reim bursed based on an output of
680 kg of rice per 1000 kg of pad d y. H ow ever, Vibrator Pad d y d e-stoning
the typical yield ratio of the local pad d y is
claim ed to vary based on the quality of grains
and contam inants present in raw pad d y. Rubber Pad d y d e-husking
Sheller

Production process
Vibrating Pad d y rice separation
Pad d y in rice m ill und er goes various separator
processes and sub processes before it reaches
to rice yard for bagging. The com plete pad d y
Trad itional Rice polishing
processing to prod uce raw rice could be cone polisher
grouped into follow ing m ajor steps:
(1) Paddy preparation 1: Various
contaminants nam ely rice straw , d ust, Vibrator Rice d e-stoning
stone, sand and imm ature seed less
pad d y is rem oved from pad d y using
blow er fan and vibrator. Grad er Rice grad ing

(2) Milling: Rice is prod uced along w ith by-

prod ucts such as husk, bran and broken
Bagging and storage
rice. H usk is sold to potential ind ustrial
buyers as the sou rce of therm al energy or
process raw m aterial d epend ing upon Production process in rice mill
target application. Bran, having 60% of
nutrients in rice kernel, is used for m aking rice bran oil and other useful by -prod ucts
such as poultry feed . Rice bran accounts for m ore than 6% of total w eight of pad d y.
Depend ing upon the facilities, further grad ing and silky polishing of raw rice is und er
taken to prod uce prem ium quality prod uct.

Technologies employed
The processing of pad dy into raw rice involves the follow ing equipment in process to
rem ove husk, separating stone, pad d y, broken rice and bran from final prod uct:

(i) Sheller
Pre-cleaned pad d y is continuously supplied to Sheller, d e-husking m achines to rem ove husk
from pad d y surface. Generally, som e of the pad dy passes w ith its husk as w ell as rice, w hich
is later rem oved and recycled back from d ow nstream process to Sheller for d e-husking.

1
locally know n as jharai or safai

3
 Cluster profile - Berhampur rice mills

(ii) Polishers
Rice prod uced in Sheller is transferred to cone polisher
w ith the help of belt conveyor. In this stage, bran is also
separated from raw rice. Polishing takes place in series
from coarse to finer grad e. Sheller and series of cone
polisher is belt d riven from a com m on shaft, w hich is
connected to a higher capacity m otor.

Polishing
(iii) Vibrator and separator
These are used at different stages of the process such as
preparation of pad d y by rem oving all contaminants like
straw , seed less pad d y, stone, grass leaves etc.,
separating stone, broken rice and carryover of pad d y
from Sheller. N orm ally, sm all m otor of 1–2 hp is
connected single arrangem ent unlike com m on drive for
Sheller and polishers.

D e-stoning
(iv) Grader
Trad itionally, polished rice are transferred through
conveyor to bagging yard w ithout separating
d ifferent categories of rice such as fully m atured ,
partially m atured (thin), d iscoloured , partially broken
etc. from the final prod uct. Presently, grad ers are
used to separate all these rice w ith the help of
specially d esigned vibrating m esh separator to
prod uce uniform quality prod uct for better prem ium .
Rice grader

Energy consumption
In raw rice millin g, only electricity from grid is used for d ifferent m otive load s in the
processing sections to operate connected m otors in place. Most of the traditional rice m illers
have single m otor w ith com m on d rive shaft. Mod ern rice m illers w ith grad ing and silky
polishing facilities have better system lay out w ith separate m otor for individ ual d rive.

(i) Unit level consumption

The unit level energy consum ption in a raw rice m ill is only electricity. There is no thermal
energy is required in raw rice milling process. The unit level energy consum ption d epend s
on the type of technology exist in the plant. The average „specific energy consum ption‟
(SEC) of Berham pur raw rice m ills is estim ated to be 19 kWh per tonne of (raw ) rice
prod uction (equivalent to 0.0163 toe/ tonne), w hich m ay vary w ithin 30–15 kWh/ tonne. The
typical energy consum ption of d ifferent capacities of rice mills are show n in table.

4
 Cluster profile - Berhampur rice mills

Energy consumption of typical capacity of rice mills

Average capacity Unit level energy consumption
(tpd) (kWh/tonne) (kWh/year) (toe/year)
1.5 30 1620 0.14
3 25 7200 0.62
6 15 7560 0.65

(ii) Cluster level consumption

The energy consum ption pattern show s a majority share
(50%) by large capacity units as can be observed in the figure.
The overall annual energy consum ption of the cluster is
estim ated to be 52 toe. The estim ated „greenhouse gas‟ (GH G)
em issions from rice m ills at cluster level is 596 tonne of CO 2. It
m ay be noted from table above that the m od ernization of the
plant w ill not only reduce energy consum ption and GH G
em issions but the plant w ill be also prod uce prem ium quality
prod uct for better cash flow . Cluster level energy
consumption

Total energy consumption of Berhampur rice cluster (2015-16)

Milling capacity N umber of Energy consumption Equivalent Annual energy
(tpd) mills (MWh/year) energy (toe) bill (million IN R)
1.5 100 162 14 1.05
3 20 144 12 0.94
6 40 302 26 1.96
Total 160 608 52 3.95

Energy saving opportunities and potential

Raw rice m ills offer significant scope for energy efficiency im provem ents in its process.
Som e of the options are d iscussed below .

(i) Shift from common drive to individual drives

A m ajority of rice m ills in Berham pur uses traditional system w ith com mon d rive shaft for
pow er transmission w ith the help of belt and pulley (100 m ills). The overall pow er
transm ission w ill be very low w ith this kind of arrangem ent. Further, connected m otors are
also old m od el w ith very low efficiency. The existing system could be m od ified w ith
ind ivid ual energy efficient m otor either d irectly coupled or attached w ith cogged v -belt for
better transm ission. This w ill red uce the unit level energy consum ption in the range of 20 –
25% in total kWh consum ption per tonne of padd y processing.

About 100 rice m ills uses trad itional com m on shaft d rive w ith total energy consum ption
equal to 162000 kWh per year can be benefitted w ith ad opting d ed icated m otor to ind ivid ual
process steps. The envisaged energy saving is 32400 kWh per year (equivalent to 2.78 toe).
The equivalent m onetary value of electrical energy saved is Rs 2.1 lakh.

5
 Cluster profile - Berhampur rice mills

(ii) Biomass gasifiers for pow er generation

The rice husk generated from raw rice m illing is totally surplus and can be used in biom ass
gasifiers for pow er generation. Th e in-house rice husk can be effectively used to generate
prod ucer gas, w hich is rich in carbon m onoxid e (CO) and hyd rogen (H 2). This gas can be
transferred to an internal com bustion (IC) engines for pow er generation. Thus the plant can
either use in house pow er in their process or can have arrangement to bank on the local grid.
Rice husk being renew al energy, this w ould further red uce the overall GH G em ission from
the cluster.

(iii) Others
A list of energy efficiency options applicable for Berham pur rice m ill cluster is provid ed
below . Based on the applicability and priorities, the rice m ills can ad opt EE opt ions that
w ould help in saving energy resulting in m onetary benefits and red uction in GH G
em issions.

Energy saving options in rice mills in Berhampur rice mill cluster

1. Shift from com m on d rive to ind ivid u al d rive system
2. Use of EE m otors in d ifferent d riv es
3. Sw itch to m od ern technology to p rod u ce silky p olished rice
4. Use of rice hu sk based gasifiers for p ow er generation
5. Sw itch to EE lighting

Major stakeholders
The m ajor stakeholders includ e district level and state level ind ustry associations. The
ind ustry associations are generally engaged w ith the government on pad d y procurem ent
and related processing charges. They have very little experience and activities related to
technology issues in the cluster; how ever the associations show ed keen interest tow ard s
technology upgrad ation of rice m ills includ ing „renew able energy‟ (RE) applications. Other
im portant stakeholders in rice mills are MSME-Developm ent Institute (DI), District
Ind ustries Centre (DIC) and PDS. Presence of „Local service provid ers‟ (LSP) such as
equipm ent suppliers, fabricators, technology provid ers, testing centres and energy aud itors
is very limited in the cluster.

Major industry associations in Berhampur rice mill cluster

N ame of association Location
Ganjam District Rice Millers Association Berham p u r
A ll Od isha Rice Millers Association Bhu banesw ar

Cluster development activities

There are no specific cluster level activities in Berham pur rice m ill cluster.

6
About TERI
A d ynam ic and flexible not-for-profit organization w ith a global vision and a
local focus, TERI (The Energy and Resources Institute) is d eeply com m itted to
every aspect of sustainable d evelopm ent. From provid ing environm ent -friend ly
solutions to rural energy problem s to tackling issues of global climate change
across m any continents and ad vancing solutions to grow ing urban transport and
air pollution problem s, TERI‟s activities range from form ulating local and
national level strategies to suggesting global solutions to critical energy and
environm ental issues. The Ind ustrial Energy Efficiency Division of TERI w orks
closely w ith both large ind ustries and energy intensive Micro Sm all and Med ium
Enterprises (MSMEs) to im prove their energy and environm ental perform ance.

About SD C
SDC (Sw iss Agency for Developm ent and Cooperation) has been w orking in
Ind ia since 1961. In 1991, SDC established a Global Environment Programm e to
support d eveloping countries in im plem enting m easures aim ed at protecting the
global environm ent. In pursuance of this goal, SDC Ind ia, in collaboration w ith
Ind ian institutions such as TERI, cond ucted a stud y of the sm all-scale ind ustry
sector in Ind ia to id entify areas in w hich to introd uce technologies that w ould
yield greater energy savings and red uce greenhouse gas em issions. SDC strives
to find w ays by w hich the MSME sector can m eet the challenges of the new era
by m eans of im proved technology, increased prod uctivity and com petitiveness,
and m easures aim ed at im proving the socio-economic cond itions of the
w orkforce.

About SAMEEEKSHA
SAMEEEKSH A (Sm all and Med ium Enterprises: Energy Efficiency Know led ge
Sharing) is a collaborative platform set up w ith the aim of pooling know led ge
and synergizing the efforts of various organizations and institutions - Ind ian and
international, public and private - that are w orking tow ard s the d evelopm ent of
the MSME sector in Ind ia through the prom otion and ad option of clean, energy -
efficient technologies and practices. The key partners are of SAMEEEKSH A
platform are (1) SDC (2) Bureau of Energy Efficiency (BEE) (3) Minist ry of
MSME, Governm ent of Ind ia and (4) TERI.

As part of its activities, SAMEEEKSH A collates energy consum ption and related
inform ation from various energy intensive MSME sub -sectors in India. For
further d etails about SAMEEEKSH A, visit http:/ / w w w .sam eeeksha.org