PROJECT NO. 289 A STUDY OF THE CLUSTERING OF PADDY PROCESSING UNITS IN AND AROUND KALADY SUMMARY REPORT Chief Project Co – ordinator: Dr. B.RAMESH DEPARTMENT OF COMMERCE & RESEARCH CENTRE SREE SANKARA COLLEGE KALADY 2003 ii PROJECT TEAM CHIEF PROJECT CO-ORDINATOR :- Dr. B. RAMESH , Lecturer (Sel. Grade), Dept. of Commerce & Research Centre, Sree Sankara College Kalady . RESEARCH ASSOCIATES :- 1. Sujith Gopinathan 2. Harikrishnan.M 3. Ratheesh.R 4. Sreekumar.K.P 5. .Krishnakumar.P.G 6. Rejeesh.R 7. Shiji.V.L. Others who have rendered invaluable services and active co-operation for the successful completion of this Research Project include several Paddy Processors, Jute Bag Manufacturers, Traditional Paddy Processors, Paddy Brokers, Various Informants, Senior Citizens of Kalady, Kanjoor, Koovappady and Okkal Grama Panchayaths, Students, Teachers and Volunteers of the Centre for Dissemination of Appropriate Rural Technologies ( C- Dart ), Kalady. iii ACKNOWLEDGEMENT It would have been hard to design and complete this Research Project in its present form, had not the reputed and respectable academicians in the Centre for Development Studies, Thiruvananthapuram inspired with valuable information, guidance and assistance at each stage of the Project Work. Among the teachers and academicians, my first and foremost thanks are due to Dr.K.NARAYANAN NAIR, Chief Programme Co-ordinator, K.R.P.L.L.D., Centre for Development Studies, Thiruvananthapuram for his expert advice and active co- operation in the completion of the Research Project. I am deeply indebted to each and every member of the K.R.P.L.L.D, Centre for Development Studies, for providing all the facilities necessary to complete the Research Project. I express my sincere gratitude to Sri. Sathyan, Jute Bag Manufacturers’ Association, Perumbavoor and other Jute Bag Manufacturers who have provided me with the information pertinent to the study. I owe my heartfelt thanks to Sri. Varghese of the Rice Mill Owners Association of Kalady, the Owners of all the Paddy Processing Units and the Officials of the Paddy Processing Units in and around Kalady who have extended their cooperation with patience by giving me the data required at the time of Field Survey for the successful completion of this Research Project. Without their committed support, it would have been impossible for me to complete this Research Project. iv I also wish to thank all my friends in the Department of Commerce & Research Centre, Sree Sankara College, Kalady, Other members of the Project Team, Traditional Paddy Processors, Paddy Brokers, Various Informants, Senior Citizens of Kalady, Kanjoor, Koovappady and Okkal Grama Panchayaths, Students, Teachers and Volunteers of the Centre for Dissemination of Appropriate Rural Technologies ( C- Dart ), Kalady. I am also thankful to Smt. M.J. Usha Devi, Professor in charge of Principal, Sree Sankara College Kalady for the assistance rendered to me for the successful completion of the Research Project. I extend my heartfelt thanks to Sri. Sujith Gopinathan for doing the graphic designing and neatly typing the manuscript of this Research Report. During the investigation and preparation of this Report the Project Team has elicited information, got stimulus, support and guidance from several Individuals, Institutions and Voluntary Agencies. Though it is not possible to mention the names of all those helped us in this endeavour, I gratefully acknowledge for their service, co-operation and assistance. Dr. B RAMESH (Chief Project Co-ordinator) v CONTENTS PAGE. CHAPTER PARTICULARS NO. I SCHEME OF THE STUDY 1 - 6 HISTORY OF CLUSTERING OF PADDY PROCESSING II 7 - 19 UNITS IN AND AROUND KALADY – AN OVERVIEW PERFORMANCE OF JUTE BAG MANUFACTURING UNITS III 20 - 33 IN AND AROUND KALADY – AN ANALYSIS PRODUCTION AND MARKETING PERFORMANCE OF IV PADDY PROCESSING UNITS IN AND AROUND KALADY – 34 - 120 AN ANALYSIS CASE HISTORIES OF THE TRADITIONAL PADDY V 121 - 126 PROCESSORS IN AND AROUND KALADY FINDINGS, CONCLUSIONS, SUGGESTIONS AND VI 127 - 151 RECOMMENDATIONS APPENDICES 152 - 169 vi List of Tables TABLE PAGE NAME OF TABLES NO. NO. Details regarding the Percentage-wise Distribution of Jute 3.1 Bag Manufacturing Units in and around Kalady 23 Details regarding Area – wise concentration of the Jute Bag 3.2 24 Manufacturing Units Ownership-wise classification of Jute Bag Manufacturing 3.3 25 Units in and around Kalady 3.4 Qualification-wise details of Jute Bag manufactures 25 Rank-wise details of Jute Bag Manufacturing Units on the 3.5 26 basis of their Installed Capacities Details regarding the Production of Jute Bag Manufacturing 3.6 Units 27 Details regarding the Capacity Utilization of Jute Bag 3.7 28 Manufacturing Units Sex-wise details of the Labourers in the Jute Bag 3.8 Manufacturing Units 29 Details regarding the Total Investment of Jute Bag 3.9 30 Manufacturing Units Classification of Paddy Processing Units on the basis of the 4.1 34 Nature of Ownership 4.2 Technology – wise classification of Paddy Processing Units 35 Classification of Paddy Processing Units on the basis of 4.3 35 their Installed Capacities Classification of Paddy Processing Units on the basis of 4.4 their Capacity Utilisation 36 Classification of Paddy Processing Units in and around 4.5 36 Kalady on the basis of the Number of Workers Employed Classification of Paddy Processing Units on the basis of the 4.6 Number of Skilled Workers Employed 37 Classification of Paddy processing units on the basis of the 4.7 38 Number of Semi Skilled Workers Employed Classification of Paddy Processing Units on the basis of the 4.8 38 Number of Un Skilled Workers Employed Classification of Paddy Processing Units on the basis of the 4.9 Extent of Changes Made in case of the Number of Workers 39 Classification of Paddy Processing Units on the basis of 4.10 40 Changes Made in the Number of Employees vii TABLE PAGE NO. NAME OF TABLES NO. Classification of Paddy Processing Units on the basis of 4.11 40 Recruitment of Skilled Workers Classification of Paddy Processing Units on the basis of 4.12 Recruitment of Unskilled Workers 41 Details regarding the Sources of Procurement of Paddy by 4.13 42 the Processing Units Classification of Paddy Processing Units on the basis of their 4.14 Pattern of Procurement of Raw Materials 43 Details regarding the Places Outside the State from where 4.15 45 Procurement of Paddy is done by the Units Details regarding the Aailability of Storage Facility of Paddy 4.16 by the Processing Units 46 Range wise Details regarding the Storage Facilities of Paddy 4.17 47 Processing Units Classification of Paddy Processing Units on the basis of their 4.18 Frequency of Purchase of Paddy 48 Location – wise details regarding Storage Facilities for 4.19 48 keeping the Raw Materials Classification of the Units based on their Preferences of 4.20 Purchasing Paddy 49 Classification of Paddy Processing Units on the basis of their 4.21 49 System of Grading Classification of Paddy Processors on the basis of Payment 4.22 of Brokerge / Commission 50 Classification of the Units on the basis of the Method of 4.23 51 Payment of Brokerage / Commission Classification of Paddy Processing Units on the basis of the 4.24 Procedures for the Procurement of Paddy 52 Classification of Paddy Processing Units on the basis of the 4.25 53 Price Fixers of Paddy in the Market Classification of Paddy Processing Units, which Purchase 4.26 Paddy on the basis of the Samples Shown 53 Classification of Paddy Processing Units, which Purchase 4.27 Paddy on the basis of the Time at which Samples are 54 Shown Category – wise details regarding the Process of Verification 4.28 55 of the Samples of Paddy Brought for Sale Method – wise details regarding the Price Determination of 4.29 Paddy in the Market 56 viii TABLE PAGE NAME OF TABLES NO. NO. Criteria – wise details regarding the Price Determination of 4.30 Paddy in the Market 57 Details regarding the Extent of Co-operation between Rice Mill 4.31 58 Owners Details regarding the Arranges made by the Rice Mill 4.32 Owners’Association for the Co-operative Procurement of 58 Paddy Percentage –wise details of Capital Investment by the owners 4.33 59 of Paddy Processing Units from their Own Sources Percentage –wise details of Capital Investment made by the 4.34 Rice Mill Owners from the Loans 60 Source - wise details regarding Loans Mobilized by the 4.35 61 Entrepreneurs 4.36 Purpose - wise details regarding the Utilization of Loans 62 Details regarding the Sources of Funds for the Working Capital 4.37 62 Requirements Details regarding Credit Period availed by the Units from the 4.38 63 Suppliers of Paddy Details regarding Credit Period availed by the Units from the 4.39 Suppliers of Jute Bags 64 Details regarding Credit Period allowed to Customers by the 4.40 64 Units Classification of Paddy Processing Units on the basis of the 4.41 Amount of Investment made for the Expansion of the Capacity 65 of their Machineries The amount of investment made by the Entrepreneurs for 4.42 66 Product Diversification Classification of Paddy Processing Units on the basis of the 4.43 Investment Made for the last 5 years for the Modernizationof 66 Machineries and Equipments Entrepreneurs who have made Capital Investment for the 4.44 67 Purchase of Vehicles for Transportation, for the last 5 years Details regarding the investment made by the Entrepreneurs in 4.45 the Construction of Godowns for the Procurement of Paddy in 68 the State / Outside the State Classification of entrepreneurs on the basis of their Investment 4.46 Made for the last 5 years for the Construction of Shops for Sale 68 of their Products ix TABLE PAGE NAME OF TABLES NO.