Odisha mulls incentives to boost rice processing

The state has been producing around 8 million tonne rice every year and roughly 60% of it is processed at domestic mills

The Odisha government proposes to provide incentives for setting up of integrated rice processing mills having facilities to produce rice bran oil and rice husk power using surplus rice available in the state.

The state has been producing around 8 million tonne (mt) rice every year and roughly 60 per cent of it is processed at domestic mills, while rest are transported to other states, either for onward shipment to other countries or for consumption there.

Some portion of the output is processed domestically by households.

To tap the business potential in the rice sector, the government wants to provide incentives to integrated rice millers.

"There is no specific package for funding the rice mills. However, the provisions mentioned in the Food Processing Policy, 2013 can be applied to investors wanting to set up rice mills," said Panchanan Dash, state MSME secretary.

Recently, at an event organised by International Finance Corporation (IFC) to explore investment opportunities in the grain sector, state chief secretary, G C Pati had said, "Odisha has become a rice exporting state and we need technology upgradation in existing mills and new mills in urban areas."

The state government said, all the benefits would be covered under its food processing policy. The policy ensures five per cent per annum back-ended interest subsidy on working capital loan for first five years from commencement of operation of the units subject to a limit of Rs 5 lakh per year for five years.

The move is aimed at developing more rice mills in coastal districts such as Cuttack, Jagatsinghpur and other nearby districts as a latest study found that nearly eight such districts lack milling capacity compared with their annual demand.

"There is definitely investment scope to establish integrated rice mills (rice processing unit, rice bran oil making unit and bio-mass power unit) in Odisha. We need to develop container facility at Paradip and Dhamra soon so that home grown rice can also be exported from here, rather than depending upon Haldia and Viskhapatnam ports to do so," said Dillip Kumar Agarwalla, managing director, Sabitri Industries, which has a turnover of nearly Rs 350 crore per year out of its Jajpur rice processing plant.