An Economic Analysis of Paddy Value Chain in Thanjavur District of Tamil Nadu (original) (raw)

In view of the economic importance of value addition the present study was taken up in Thanjavur district of Tamil Nadu, India to estimate value chain of paddy. The aim of the study is to identify the existing value chain and create new chain in the study area. Random sampling technique was used to select 60 farmers. The result showed that, 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. In value chain for rice production, the share in value addition was 26.42 per cent for rice millers, 0.16 per cent Rice bran crude oil, 0.09 per cent for Rice bran refined oil, 0.05 per cent for traders, 6.41 per cent rice retailers and 0.04 per cent for rice bran refined oil retailers. In value chain for flaked rice industry, the share in value addition was 14.71, 0.28, 0.08, 0.09, 8.04 and 0.08 per cent for Flaked Rice Industry, Rice Bran Crude Oil, Rice Bran Refined Oil, traders, flaked rice retailers and rice bran refined oil retailers in channel respectively. Finally the study concluded that, the value addition in the existing value chain was ` 5096 which can be increased to ` 9530 through proposed model. Highlights m The long marketing channel which includes more intermediaries and less value addition at farmer level results in low profit to the farmers. Developing a good value chain for rice which will benefit all the stake holders in rice value chain is the need of present hour.