All of us buy Rice regularly from grocery shops for our use. Farmers cultivate Paddy and sell them as Paddy. 
Why don't we enable farmers to mill the Paddy and produce Rice for us?

Here's how it would work.

There are millions of farmers  who grow paddy in Tamilnadu. There're two seasons in paddy namely Kuruvai (June - September) and Samba (August - January). Farmers grow both fine varieties (Cooking Rice) and Bold varieties (Idly Rice)  in these seasons. Farmers are currently cultivating the Kuruvai crop and will come to harvest, starting July.

If there are considerable number of buyers for rice, both Idly rice and cooking rice, we would contact farmers to produce the required amount of paddy and get that converted to rice. This would enable the farmer to get additional margins and the consumers could get rice at better rates. We could also engage with organic farmers and get organic rice too.

  • The milling percentage of paddy is around 60%.

  • To get 1 Kg of rice, we would need 1.6 Kg of Paddy.

  • The average rate of paddy is 16 rs per Kg. 

  • The cost of paddy to produce 1Kg of rice is 1.6 x 16 = Rs. 26

  • Assuming the milling and other handling expenses, the total cost of rice per kg would be Rs. 30 to 35 per Kg

  • The market rate of Idly rice is Rs 45 and cooking rice is Rs. 60

By buying direct from farmers on shared margins, we could get rice at the rate of Idly Rice 38 and cooking Rice at Rs 45 per Kg.

Don't you think that's a Win Win?


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