KERALA AGRICULTURAL UNIVERSITY

PROJECT PROPOSAL ON RICE BIOPARK

Biopark is a concept for providing opportunities for ensuring livelihood security
through eco-friendly technologies and appropriate interventions based on the
principles of pro-nature, pro-poor and pro-women orientation. It ensures adaptive
participatory development process integrating farmers and entrepreneurs through
common facility technology and knowledge centers.

Government of Kerala has

adopted this concept for integrating product and market in two of its major
commodity crops, rice and coconut. These crops have shown declining production
trends over the years in the state, which is mostly attributed to the high cost of
production and non remunerative price trends. A total outlay of Rs 10 crores

has

been earmarked for the setting up of Rice Biopark. This is expected to bring the
benefits of food sector enterprises directly to farmers through better demand and
prices for the products.
Rice Bio- Park
India produces over 250 million tons of rice biomass, in addition to over 125 million
tones of paddy. Rice is the staple food of Kerala. With the increasing population
there would be increased demand for rice. With the shrinking

land and water

resources this would be a major challenge. The State is producing less than 1/6th of
the requirement and 85 % of the food grain required for Kerala comes from
neighboring states. Another challenge is to keep the rice price low to benefit the poor
consumers and to reduce production costs to benefit poor rice farmers. Despite the
high procurement price of rice in the State, which is 30% higher than the Minimum
Support Price fixed by the GOI, farmers are finding it non remunerative due to high
production costs. Therefore, to attract more farmers to rice cultivation and to sustain
rice farming in the State, it is essential that the potential of value addition and product
diversification in rice is explored. The State has so far not made much tangible
progress in product diversification and byproduct utilization in Paddy. This can be

addressed seriously through appropriate linkage of food sector industry with

production.
Concept of Rice Bio-park
Rice Biopark is conceived as an institutional mechanism for adding value to every
part of the rice plant - grain, straw, bran and husk.

It provides the necessary

infrastructure for entrepreneurs to initiate rice biomass based enterprises. The

Government in the financial year, 2012-13 has decided to set up rice bio parks to help
the farmers for achieving increased sustained productivity, value addition to all allied
products, resulting maximum market value for the products. It is envisaged to achieve
following specific goals in the rice production sector of Kerala.
Organized promotion of diversified value added products in rice
Popularization of rice based edible and non edible products
Better price stability
Steady market demand
Growth in export realization
Overall contribution of rice to GDP

In the budget of Government of Kerala, there is provision to establish two rice bio
parks one each in Kuttanad and Palakkad regions of Kerala. In the rice parks diverse
value added products of rice will be produced. It is also envisaged that these parks
will function through special companies formed under farmer-public-private
partnership model. An amount of Rs.10 crore is set apart for this in the budget for
2012-13.
Site Proposed
The proposed bio-parks will be located in 25.0 acre plots each in Kuttanad and
Palakkad, the two rice bowls of Kerala. The proposed sites are Vechur, DAF, Koozha,
Kotayam for Kuttanad & Alathur and DAF, Malampuzha. The locational advantage
of these sites is the large area under rice farming. Further the sites have access to
excellent physical infrastructure facilities like communication, power supply, water
supply etc. Proximity to existing Rice Mills (Vechoor Rice Mill in Kuttanad and
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Paddy Co in Palakkad) as well as linkages with by product supply are added

advantages.
The final selection of the site will be made by an expert committee represented by the
Kerala Agricultural University, State Department of Agriculture and Peoples
representatives based on following criteria.
i. Availability of raw materials in the area
ii. Availability not less than 50 acres of land
iii. Source with abundant quality water
iv. Proximity and access to easy transportation and shipping
v. Environmental/Ecological/Legal considerations
vi. Other infrastructural facilities
Nodal Agency: The project will be implemented by the Kerala Agricultural
University as the nodal agency in collaboration with Department of Agriculture,
KSIDC, KINFRA, Farmers Cooperatives and Farmer Associations in rice
(Padashekara Samithies)
Management of the Rice Bio Park: Management of the Coconut Bio
Park:

The

constituted

park will be entrusted to a Society (Technopark Model)

involving representatives

from

all

stakeholders

for

the

management and the proper functioning of the bio park. Governing Council
shall be the Society in accordance with the provision of The TravancoreCochin Literary, Scientific and Charitable Societies Registration Act XII of
1955
The Society shall be managed with an institutional framework with
independent and autonomous authority, responsibility and flexibility for
dynamic operations.
Council will be assisted by The Project Implementation Board for the total
administrative, technical and financial management of the Park and for
periodic reviews, monitoring of the activities of the Park and to take remedial
measures, as deemed fit, to meet the aims and objectives of the Park under the
broad guidance of the Council
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 The Council shall consist of not less than nine and not more than twenty
members to be constituted as under:
a. Chairperson [Hon. Minister for Agriculture}, Govt. ofKerala
b. Vice Chairperson [Secretary (Agriculture)]
c. Chief Executive Officer - Member
d. Other members to be nominated by Chairperson of the Council subject to
numerical ceilings.
The Council can modify the above constitution of the Council with the
concurrence of the Chairperson of the Council.
The Registrar of the Park shall be the Secretary to the Council.
"The Board shall have not less than three and not more than fifteen
members to be constituted as under.
a. Chairperson - Vice chairperson of the Council.
b. Chief Executive Officer - Member.
c.

Other members to be nominated by Chairperson of the Board in

consultation with the Chairperson of the Council subject to numerical ceilings.

The Registrar of the Park shall be the Secretary to the Board.
The Council can modify the above composition of the Board with the
concurrence of the Chairperson of the Council.
Subject to the provision of these Rules, the staff of the Park will consist of:

a. Chief Executive Officer.

b. Technical staff
c. Registrar
d. Administrative staff;
e. Such other officers and employees as may be considered necessary for the
work of the Park.
The properties and funds of the Park shall vest in the Council and shall
consist of: (a) Recurring grants made by the Government of Kerala.
(b) Any other grants made by the Government of India/State Government; (c)
All machinery, plant, equipment and instruments (whether laboratory,
workshop, prototype shop or otherwise), books and journals, furniture,
furnishings and fixtures belonging to the Park;
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 (d) Grants, gifts and donations of cash and securities and of any properties,
either movable or immovable; and
(e) Remuneration received through rents, dividends, leasing, consultancy,
design, development, technology transfer, contracts etc.
Features of Proposed Rice Bio Park

The bio park will be designed and constructed in accordance with national /
international norms stipulated for similar parks.

The bio-park will have the following components.

a. Administrative building
b. Basic infrastructural facilities such as road, water, electricity, communication
etc
c. Training and discussion facility
d. Single window clearance system
e. Effluent treatment plant
f. Water treatment plants and Water supply systems
g. Food Technology Research Centre of KAU ( R & D Wing)
h. Common facility for packaging, labeling, product testing/quality control,
transportation, warehouse/godown, sales counter/exhibition, parking etc
i. Other Facilities- security, medical care, crche, fire force, canteen facilities

Selection of Entrepreneurs
The facilities of Biopark will be extended to companies/ entrepreneurs, willing to set
up rice based value addition/processing units and those who satisfy the norms to be
fixed by the government in consultation with Kerala Agricultural University. Priority
could be given to companies formed by farmers and women. Individual project has to
be submitted by the company/ entrepreneur concerned and to be got approved by the
Technical Committee, represented by KAU, DoA and other related government
departments, Research Organisations, NABARD, Lead bank etc. constituted for the
purpose. Route map for unit establishment by an entrepreneur in the bio park involves
the following stages as depicted below.

Industries Proposed to be Promoted

A few rice based products that have potential in the market are included in Plate-1.
Industries proposed to be promoted in rice parks in the first phase of implementation
with sources of technology, plant capacity per day, financial outlay and the pay back
period (PBP) is included in the table below.
Sl.
No.

Value Addition
Industry

Source(s) of
Technology

Capacity
(MT/day)

Financial
Outlay (Rs.
lakhs)

PBP
(Yrs)

PRDC,
Thanjavur
CFTRI

8.00

14.6

4.00

9.0

KVIC

0.20

1.40

CFTRI
CFTRI

1.50
4.00

13.45
106.00

3
2

Malnad
industries,
Shimoga
PPRC

0.60

38.00

1.60

4.00

CFTRI

1.00

11.95

KVIC

0.50

12.80

CFTRI

0.50

11.48

CFTRI

4.00

14.50

NRDC

8.00

179.00

Ready to fry
KVIC
snacks
Vermicelli/ noodle CFTRI

0.06

2.04

1.00

65.50

I. Primary Products
1.

Parboiled Rice
DH
2.
Parboiled Rice
HS
II. Secondary Products
1.
Ready to make
flour
2.
Rice Flakes
3.
Health mix
(Energy food)
4.
Rice bran oil
5.

Stabilized rice
bran HA
III. Tertiary Products
1.
Quick cooking
rice
2.
Ready to eat
snacks
3.
Combination
products
4.
Cattle & poultry
feed from deoiled
bran
5.
RHA board
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7.

Plate-1 Commercial rice based products

Roles and Linkages of different stakeholders

Roles and responsibilities of the different agencies involved is described below. The
conceptual figure showing the interlinkages of the agencies involved are given as Fig.2.
1. Nodal agency (KAU)
1. Quality control and product testing
2. Research and Development
3. Support the SPV in handholding the entrepreneurs/companies and linking them
to support agencies/other service providers
4. Providing market intelligence
2. Farmers: Raw material supply
3. Companies: Procurement /supply of raw materials, product manufacturing and
marketing
4. Government: Creating/providing infrastructural facilities and extending financial
support; hassle free clearance of procedural formalities by various departments
through single window system
5. State Department of Agriculture: Technologies and financial incentives
6. NABARD and other financial institutions: Credit/ financial support
Fig.-2 Conceptual figure showing inter linkages

KAU

Govt of
Kerala

Rice based
companies

R&D
Organizations

State
Department
of Agr.
Fin.
Institutions

Farmers

Expected Outcome & Impact

1. Steady market and remunerative price for rice and by products
2. Steady market for straw
3. Total utilization of paddy
4. Provides fillip to rural entrepreneurs and promotes value addition and processing
of rice on commercial scale
5. Generates employment and income
6. All the players in the development process come together to produce desired
results
7. Serves as a platform for the graduates in agriculture and allied disciplines to learn
and get motivated
8. Accelerates technology (value addition and processing) development and
refinement process
9. Promotes inter enterprise linkage in terms of raw material exchanges and waste
utilization
10. Promotes safe to eat food items
11. Increases production and productivity of rice
Budget: The Rs. 10 crore will be utilized for creating basic infra structural facilities
like fencing/compound wall, roads, power, water supply and construction of
administrative building during the first year of project implementation.

Budget

provision may be made during subsequent years for further development and
management.

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Detailed budget for Ist year:

Sl.

Details

Amount (Rs.

No.

in lakhs)

1.

Basic infrastructural facilities such as road, water, electricity,

communication etc

200

2.

Administrative building

100

3.

Training and discussion facility

50

4.

Single window clearance facility

100

5.

Effluent treatment plant

100

6.

Water treatment plants and Water supply systems

50

7.

Food Technology Research Centre of KAU ( R & D Wing)

Common facility for packaging, labeling, product
testing/quality control, transportation, warehouse/godown,
sales counter/exhibition, parking etc

150

Other Facilities- security, medical care, Crche, Canteen

facilities

50

8.

9.

Total

200

1000

(Rupees Ten crores only)

For further details, please contact:

Dr .P. V. Balachandran, Director of Extension,Kerala Agricultural Universit,

Mannuthy, Thrissur.
Disclaimer:
The findings contained in this Project Profile are based on the initial information collated
through primary and secondary research, which is only indicative and may not reflect the
realities of an actual project. Reference herein to any specific commercial product, process,
service by trade name, trademark, manufacturer, or otherwise, does not constitute or imply its
endorsement, recommendation, or favoring by (name of department) or any entities thereof.

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