RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT - Detailed Project Report on Aata Chakki and Roller Flour Mill
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RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT Detailed Project Report on Aata Chakki and Roller Flour Mill Prepared by: AGRI BUSINESS PROMOTION FACILITY
Contents Page Executive Summary ............................................................................................................................ 2 Chapter 1: Introduction-Wheat .......................................................................................................... 8 Chapter 2: Technology advances and circumstances in Wheat Flour Milling ........................... 21 Chapter 3: Production and processing hubs/ clusters in Rajasthan .......................................... 31 Chapter 4: Manufacturing process and technology benchmarking ............................................ 33 Chapter 5: Appropriate technology options .................................................................................. 48 Chapter 6: SWOT of technology ...................................................................................................... 60 Chapter 7: Indicative project profile for Rajasthan ....................................................................... 63 Chapter 8: Method of technology dissemination and adoption ................................................... 93 Reference ........................................................................................................................................... 95 Rajasthan Agricultural Competitiveness Project 1
Executive Summary The development objective of Rajasthan Agriculture Competitiveness Project (RACP) is to sustainably increase agriculture productivity and farmers’ incomes in several selected locations of Rajasthan. As a part of this approach, several Farmer Producer Companies (FPCs) have been developed and supported under the project. Each of these companies will have primary and/or secondary (value adding) processing infrastructure (Farmer Common Services Centers (FCSCs)), services of which will be availed by farmers of their cluster region. Broadly, these companies will aggregate produce of farmers, process/value add and directly sell in bulk to processors/consumers. This, in turn, will enable farmers to realize higher and better remuneration for their produce. In a nutshell, the envisaged FCSCs will have micro or small scale milling/processing and packaging units to facilitate services to farmers. Naturally, existing and upcoming agro and food processing units in the state play a highly important role in the scheme of things, i.e. forward linkages in agriculture. Evidently, higher investments in such agribusinesses will bolster development and sustainability of FPCs and farmers thereto. In line with the approach, RACP, through its Agri-Business Promotion Facility (ABPF), aims at: Promoting agribusiness investments in the state And providing incubation facilities to foster innovation & entrepreneurship The objective of this report is “scouting of technologies and suitable replicable models” in wheat flour processing (both in terms of Atta Chakki and Roller Flour milling). Broadly, the report aims to provide some insights, to prospective entrepreneurs and existing unit holders in the state - on technological gaps identified in existing units, on several technological advances in the industry, on benchmarking technology and efficiency vis-à-vis industry bests in other parts of the country and providing suitable replicable models for micro, small and medium/large scale investors. Notably, wheat flour production and demand has increased dramatically during the last decade due to evidence supporting the benefits of whole grains in the diet, as well as diverse uses of products like maida, suji and bran. However, there are unique challenges that accompany flour production, especially related to cleaning, milling, packaging, testing and storage. The present thesis provides some important suggestions on the adoption of new technologies to overcome such challenges. The use of stylized wheat spike as a symbol of FAO highlights the importance of the crop and the same is a major cereal crop after rice in India. The total estimated production of food grains in India during the year 2000-2001 was 195.92 million tonnes and the share of wheat was 68.76 million tonnes i.e. about 35 per cent. The country has emerged as the second largest producer of wheat after China and accounts Rajasthan Agricultural Competitiveness Project 2
for 12.06% of global production of wheat. Due to sustained efforts made by policy makers, agricultural scientists, extension workers and receptive farmers, the production of wheat dramatically increased manifold on account of adoption of modern production technology. Currently, the state accounts for 7.49% of the total wheat production and 7.24% of total area under wheat in India. Over 20 districts are producing wheat and 11 are major producers. Ganganagar, Hanumangarh, Bharatpur, Kota, Alwar, Jaipur, Chittorgarh, Tonk, Sawai Madhopur, Udaipur and Pali are important wheat producing districts of Rajasthan. The top five districts producing wheat in Rajasthan are Ganganagar, Hanumangarh, Alwar, Baran and Bundi. Ganganagar ranks first (in production), followed by Hanumangarh. The composition of wheat has all nutrients that are considered essential for human consumption and hence the same is the most preferred flour across the world. The global flour market is primarily propelled by the rising consumption of flour and bakery products in various regions. The rapidly growing demand for fast food products in restaurants, cafes, and food chains in various developing and developed nations is bolstering the demand for flour milling. The rising demand for flour confections is expected to boost the market, especially in developing regions. Furthermore, the burgeoning flour milling industry in several emerging regions is anticipated to accentuate the market through the forecast period. Processing of Atta is highly unorganized sector in India. Traditionally, atta is mainly produced in the Chakki (grinding stone) mill and it continues to be used till date. Roller flour mills are comparatively organized than Atta millers. Tamil Nadu, Punjab and Gujarat have the highest number of roller flour mills in the country. The urban market dominates packaged wheat flour market in India and occupies more than 90% of the total market where as due to penetration of packaged food in rural India, rural consumers’ willingness towards the packaged wheat flour has risen to some extent. ITC’s ‘Aashirvaad’ is the clear market leader among the national players in branded packaged wheat flour market in India with occupying more than 35% market share where as several regional brands (produced by flourmills serving region specific market) together occupy major 40% share of market. Shakti Bhog with wider penetration holds almost 12% market share where as other national players such as Pillsbury, Nature Fresh and Annapurna occupies below 10% market share. Packaged Flour market here mirrors the National scenario in majority aspects. While there is segment of consumers which still follows the traditional practice of carrying cleaned wheat to local chakkis to get their desired fineness of fresh atta. Another segment which is grown at a fast pace comprises of mostly urban population preferring packaged wheat flour. In this segment, largely, consumers prefer known brands like Aashirwad aata, Shakti Bhog Atta, Patanjali Atta, Pillsbury Chakki Fresh Atta, and Nature Fresh Sampoorna Chakki Atta. A good number of local players have also been targeting this segment but as of now most of them mainly rely on institutional supply (particularly for maida and suji) to companies like Britannia, Parle, and other ingredient buyer industries. Some local players like Alwar Roller Flour Mills, Nav Durga Roller Flour Mill, Jindal Prime food pvt. Ltd, Satguru food products, Laxmi roller flour mills pvt ltd, LM industries, KGM Roller Flour Mill, Agarwal Roller Flour mill, etc have been targeting the institutional as Rajasthan Agricultural Competitiveness Project 3
well as retail clientele in the region. Their advantage, in this context, is logistical benefit gained from proximity to some major markets. Rajasthan has proximity to large consumer markets in the region (in and around the NCR) that have a big share of India's food consumption. 8,380 sq km of Rajasthan falls in the National Capital Region (NCR), which is around 24.5% of the total NCR. Rajasthan shares its border with five major Indian states: Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat. Flour mill units in Rajasthan have to their advantage, access to this enormous market. There are number of products that can be processed by Wheat: a. Atta b. Maida c. Suji/Rawa d. Bran Scenario of flour mill industry in the traditional units can be summarized as below: 1. Inadequate storage facilities 2. Inadequate equipment and facilities for cleaning 3. Low recovery and thus low profit margins 4. Old technology, leading to quality aberrations in grinding and sifting 5. Cost of up-gradation is often high 6. Outdated and non-automatic technologies and engineering; also high power and labour costs 7. Even basic color sorter are not installed; hence unable to appropriately grade material into acceptable and reject grades; also, absence of metal detector equipment too in some units. Hence, high level of rejection, affecting yield and profit margins of firms. 8. Traditional machineries and automation at all levels of processing is fairly low (except in some modern mills). 9. Packaging in most units is done manually; very few (largely roller flour mills) have ventured into retail sizes. Benchmarking the Chakki Atta and Flour manufacturing process in key clusters at Rajasthan # Process Traditional method (especially Modern Method/s in more in micro units) advanced units 1 Raw Material In own or other private godowns Galvanized Silo Storage Storage System 2 Raw Material Inadequate equipment and facility Pre-Cleaner (Drum Sieve) Cleaning (Pre- for pre-cleaning and fine cleaning Magnet Separator cleaning and Separator Classifier Fine Gravity Separator Cleaning) De-Stoner Scourer Entoleter Color Sorter Intensive Dampener 3 Milling Traditional chakkis and manual rolls; Modern Roller Mill (8 roll) Section Traditional plansifters and purifiers Modern Stone Chakki mill (cast iron disc or high quality stone) Rajasthan Agricultural Competitiveness Project 4
Modern Plansifter Modern Purifiers 4 Wholesale and Manual Packaging methods; for Automatic Weighing and Retail retail packaging job work from Bagging machine Packaging service providers Vertical Form Fill Seal machine 5 Testing and Only basic testing in-house; Digital and IR Moisture Meter, hot air other support outsourcing of various other tests oven, ashing oven/muffle furnace, activities kjeldhal apparatus, soxhlet apparatus, centrifuge, vortex stirrer, sedimentation shaker, NIR grain analyzer, Universal lab sifter, pH meter, precision weighing scales, glassware and chemicals, etc 6 Support Often, sub-standard quality support Based on size, capacity and Equipment, equipment, engineering and low milling engineering the Engineering level of automation support structure and and equipment need to be Automation installed; should be robust and shock absorbent. The plant layout should present a smooth, orderly flow of raw materials or ingredients through each manufacturing phase on to the storage of the finished product. Process optimization refers to operate plant optimally with economic performance in terms of productivity and yields. It also avoids human errors. Scada systems are now integral part of flour mill industry. The report also outlines three project profiles that could be referred by entrepreneurs to select their most suitable option. Broadly, one micro scale, one small scale and one medium scale investment option has been showcased primarily to suit the investment capabilities of the entrepreneurs. Section 7.1, 7.2 and 7.3 of Chapter 7 individually showcase the financial feasibility of these projects. a. Profile 1 highlights a micro scale model that can be pursued as guiding model by small farmers or individual entrepreneurs, farmer groups, farmer producer association/companies. The technology proposed for this segment involves Mini Semi-Automatic 1000 kg/hour capacity Atta Milling unit which comprises of a Cleaning machine, Gravity Separator, Pulveriser Machine, Flour Mill-20" Chakki, material handling equipments and tanks, aspiration system, cabling and control panel, and packing machine. The total cost of the complete set of Main Rajasthan Agricultural Competitiveness Project 5
P&M, on basis of some referred quotations of leading suppliers in the segment, is Rs. 22.50 Lakhs. This cost is inclusive of taxes, transportation, installation and commissioning charges. b. Profile 2 showcases a small scale model, which can be pursued as guiding model by small scale entrepreneurs, farmer producer association/companies. The technology proposed for this segment involves Semi-Automatic 40 TPD Chakki Atta Milling unit which comprises of Cleaning machines, atta plant section, complete support structure, storage tanks and material handling equipments, aspiration system, cabling and control panels and bagging machine. The total cost of the complete set of Main P&M, on basis of some referred quotations of leading suppliers in the segment, is Rs. 85.38 Lakhs. The cost of Utilities (Weighbridge, RO Plant etc), on basis of some referred quotations of leading suppliers, is Rs. 35.00 Lakhs. This is inclusive of taxes, transportation, installation and commissioning charges. Hence, total cost of P&M is Rs. 120.38 Lakhs. c. Profile 3 portrays a large scale model, which can be pursued as guiding model by some medium and large scale entrepreneurs or institutions. The technology proposed for this segment involves Fully Automatic 150 TPD- Roller Flour Mill & 30 TPD- Chakki Atta Plant. The main plant and machinery include complete set of machines of the cleaning section, roller flour milling section, chakki atta plant section, complete support structure, storage tanks and material handling equipments, aspiration system, cabling and control panels, bagging machine, pneumatics and automation system and lab equipments. The total cost of the complete set of Main P&M, on basis of some referred quotations of leading suppliers in the segment, is Rs. 1100.00 Lakhs. The cost of Utilities (Electrical Substation, Weighbridge, RO Plant etc), on basis of some referred quotations of leading suppliers, is Rs. 100.00 Lakhs. This is inclusive of taxes, transportation, installation and commissioning charges. Hence, total cost of P&M is Rs. 1200 Lakhs. RACP-ABPF shall undertake mix of some or several initiatives to disseminate the suggested technologies and models, which may broadly include: Workshops for prospective entrepreneurs/groups, existing industry owners and BoDs of FPCs Facilitate technology benchmarking exposure visits within and outside state for prospective entrepreneurs/groups, existing industry owners and BoDs of FPCs Seminars and Workshops in association with Industry Associations, Technical Institutes and R&D Institutions Technology Meets and Tie-ups with Technology Suppliers, Technical Institutes and experts Facilitate through consultancy and business development services Dissemination of success stories of units facilitated by ABPF through appropriate media Dissemination through web portals and mobile applications The models and business plans suggested in this report are broadly generic in nature, however involve: technology profile civil works requirement raw material sourcing and logistic costs for sourcing raw material capacity utilization for different scenarios Rajasthan Agricultural Competitiveness Project 6
realistic assessment of investment and working capital needs possible sources of funding financial analysis The suggested models and business plans are for optimal capacities that can be fine-tuned to the scale, investment, technology needs of the entrepreneur. ABPF will further guide entrepreneurs on statutory clearances needed for operating the business, required licenses, ways of leveraging various government schemes/subsidies and several other aspects for effective technology adoption. In order to increase the scale and potential adoption, ABPF shall pursue some or mix of several initiatives, which may broadly include: Investor road shows B2B Meets Establishing Mentor Network Mentor-Mentee Workshops Facilitating Access to Finance Creating a robust knowledge base Preparation of business plans Review of business plans for funding through RACP Rajasthan Agricultural Competitiveness Project 7
Chapter 1: Introduction-Wheat 1.1. Introduction Importance of wheat worldwide as main food can be understood by use of stylized wheat spike as a symbol of FAO. Wheat is a major cereal in India after rice. The total estimated production of food grains in India during the year 2000-2001 was 195.92 million tonnes and the share of wheat was 68.76 million tonnes i.e. about 35 per cent. India has emerged as the 2nd largest producer of wheat after China and accounted for 12.06 per cent share of total world production of wheat. Due to sustained efforts made by policy makers, agricultural scientists, extension workers and receptive farmers, the production of wheat dramatically increased manifold on account of adoption of modern production technology. Wheat kernel consists of four main parts – Seed coat (10 per cent of the kernel weight); aleurone layer (6 per cent); starchy middle, the endosperm (81 per cent) and the germ (3 per cent). Consumption of wheat became popular in all the states of country due to greater flow of marketable surplus, spread of knowledge that whole meal atta contains double the quantity of proteins and five times the quantity of calcium compared to consumption of equal quantity of rice. Another factor which has been responsible for widespread consumption of wheat is its gluten content, making it most versatile cereal with multifarious usage. It is responsible for rheological features of dough. It absorbs and retains moisture, traps the gases in dough and improves the crust color. Although a number of species of wheat are recognized in the world, only three species of wheat namely; Triticum aestivum (Bread wheat), T. durum (Macaroni wheat) and T. dicoccum (Emmer wheat) are commercially cultivated in India.1 Wheat is globally the leading source of carbohydrate in human food, with content of about 71%, apart from this, it also contains 13% proteins which is very high as considered to cereals and hence is also a major source of proteins around the world. The different products of wheat commonly used are Atta (whole meal), which is rich in Vitamin-A and Vitamin-B, whereas Maida (white flour) contains lesser Vitamin-B and protein contents. Suji (coarse semolina), Rawa (fine semolina), Vermicelli, noodles are other products in common use. 1.2. Global scenario Wheat is the third largest cereal produced in the world and its output has increased from about 600 million tonnes in early 2000s to about 700 million tonnes in 2013-14. The major wheat producing countries in the world are China, India, USA and Russia which account for about 45% of the total world 1 http://www.commoditiescontrol.com/eagritrader/staticpages/index.php?id=72 Rajasthan Agricultural Competitiveness Project 8
wheat output. Although India has the largest area under wheat cultivation but it is the second largest producer to China due to lower yields in the world. Global wheat Production in 2016-17 was 735.59 million tons. This year's 748.24 estimated million tons could represent an increase of 12.65 million tons or a 1.72% increase in wheat production around the globe.2 Figure 1: Major Wheat Producing Countries **Figures in million tons European Union, a group of Euro countries, is the top producer, second largest consumer and exporter. However, in terms of individual countries, China is the largest consumer followed by India, Russia and U.S. In terms of exports, U.S. has always been the top exporter of wheat contributing nearly 1/5th of the total world’s exports. The exports from Australia have also been rising steadily from the late 2000s. The list below highlights the fact that the largest producers of wheat are also the largest consumers indicating that wheat production is consumed at the point of production. The same is captured in the list below. The export market of wheat is getting competitive with the new entrants like India.3. Table 1 Top 5 producers, consumers and traders of wheat in the world 2013-14 Cultivators % Producer % Consumers % Exporter % Importers % s India 13 EU 20 China 18 US 19 Egypt 7 EU 12 China 17 EU 17 EU 16 China 6 China 11 India 13 India 13 Canada 15 Brazil 5 Russia 11 US 8 Russia 5 Australia 12 Indonesia 5 US 8 Russia 7 US 5 Russia 10 Algeria 4 Source: USDA 2 https://www.worldwheatproduction.com/ 3 http://univisionin.blogspot.in/2012/06/world-scenario-of-wheat.html Rajasthan Agricultural Competitiveness Project 9
Major Exporters and Importers of Wheat Figure 2: Major exporting countries of Wheat Source: Comtrade **Figures in million tons Canada was the leading wheat exporting country in the world followed by US and Russia in 2015-16 as presented in the figure 2 above. India’s share in global exports was around 0.40 percent in the year 2015-16. Figure 3: Major Importing Countries Source: Comtrade **Figures in million tons As presented in figure 3, Algeria was the largest importing country in the world followed by Italy, Indonesia and Japan in the year 2015-16. Rajasthan Agricultural Competitiveness Project 10
FAO’s first forecast of global wheat production in 2017 stands at 744.5 million tonnes, indicating a 1.8 percent decline from the 2016 record level but still above the last five-year average. The year-on-year decline would mostly reflect the projected decrease in plantings in North America, and a return to normal production levels in Australia following an exceptionally high output this season.4 The consumption of wheat in the world is increasing significantly but is successfully kept satisfied with an equally high production figures. Table 2: Trends in world wheat demand and supply (million tons) Year Production Imports Exports Consumption Stocks 2010-11 651 132 133 653 198 2011-12 696 149 158 688 197 2012-13 658 144 137 686 176 2013-14 714 157 166 694 186 2014-15P 720 153 155 708 196 Source: USDA 1.3. Indian scenario India stands first in area and second in production next to China in the world. India’s share in world wheat area is about 12.40%, whereas it occupies 11.77 % share in the total world wheat production. India’s wheat production has increased in last 10 years at CAGR of 2.46%. The area under wheat cultivation has also increased in last 10 years at CAGR of 0.77 percent.5 There is hardly any scope for expansion of area under Wheat. The main emphasis would be on increasing the productivity of Wheat by adopting the improved cultivation practices. 6 Nearly 85% of total wheat production comes from five states in 2013-14. Uttar Pradesh is the largest producer of wheat contributing for about 32%. Punjab accounting for about 18% followed by Haryana for about 13%, Madhya Pradesh for about 12% and Rajasthan for about 10% of the total wheat output in the country.7 The main varieties of wheat grown in India are - VL-832,VL-804, HS-365, HS-240 , HD2687,WH-147, WH-542, PBW-343, WH-896(d), PDW-233(d), UP-2338, PBW-502, Shresth (HD 2687), Aditya (HD 2781), HW-2044, HW-1085, NP-200(di), HW-741.8 Figure 4: State wise Share in Production 4 http://www.fao.org/worldfoodsituation/csdb/en/ 5 http://agricoop.nic.in/sites/default/files/Wheat.pdf 6 http://farmer.gov.in/imagedefault/pestanddiseasescrops/wheat.pdf 7 www.commoditiescontrol.com/eagritrader/staticpages/index.php?id=72 8 http://apeda.gov.in/apedawebsite/SubHead_Products/Wheat.htm Rajasthan Agricultural Competitiveness Project 11
State wise Share in Production (2013-14) Rajasthan Others 10% Madhya 15% Pradesh 12% Haryana Uttarpradesh 13% 32% Punjab 18% Source: Ministry of Agriculture, GoI India’s wheat production in the last two years has declined below the rising trend line due to adverse weather conditions such as the untimely rains and hailstorms during the harvest in the year 2015/16 and also due to early moisture and temperature stress in the year 2016/17. The wheat area peaked in most wheat growing states by the year 2014/15 and the crop is likely to further lose the ground to other high value crops (horticultural and plantation crops) and non-agricultural use in future. Irrigated agricultural lands under rice-wheat cropping system are the prime target for high-value agriculture and to satisfy expanding urbanization and industrialization needs. The wheat growing areas in the northwest India are also facing the problem of declining water table and soil salinity due to over-exploitation of ground water and unscientific irrigation practices (flood irrigation). Depletion of irrigation water resources is likely to put pressure the on area under wheat cultivation in north India in the next few years, forcing farmers to explore less water intensive crops like fruits, vegetables, corn, pulses and oilseeds. Table 3: Production of wheat in India from 2010-2014 Sr. no. Year Production 1. 2010-11 86.9 2. 2011-12 94 3. 2012-13 93.5 4. 2013-14 95.9 Source: Directorate of Economics and Statistics, Ministry of Agriculture and Farmers Welfare In the last decade, Indian wheat yields have ranged from 2.7 MT/hectare in the year 2007/08 to 3.2 MT/ hectare. The yields across major growing states during a given season show large variation depending on irrigation capacity and technology adoption levels. The yields in large irrigated growing areas of the north (Punjab, Haryana and Western U.P.) are above 4.5 tons per hectare, while yields in Rajasthan Agricultural Competitiveness Project 12
the central and western states (Gujarat, Madhya Pradesh, Rajasthan, Bihar and most of Uttar Pradesh) are relatively low (1.5-2.8 tons per hectare) due to lack of assured irrigation facilities and low input use.9 Figure 5: India wheat production, area and yield (last10 years) Source: Ministry of Agriculture, GoI and FAS/New Delhi (MY 2016/17) Exports The demand of India's wheat in the world shows a rising trend as per the figure presented above. The country has exported 618020.01 MT of wheat to the world valuing Rs.978.59 crores during the year of 2015-16. India’s wheat export in 2015-16 has however declined by 79% over the corresponding year in view of surplus global stocks and higher domestic prices as presented in the table below. India exports the most to Bangladesh, followed by Nepal and UAE. Major Export Destinations (2015-16): Bangladesh, Nepal, United Arab Emirates, Taiwan and Philippines. Table 4: Indian export of wheat (Top 5 destinations)10 Product: Wheat/Value in Rs. Lacs 2013-14 2014-15 2015-16 Country Qty Value Qty Value Qty Value Bangladesh 19,85,441.28 3,17,124.54 11,23,304.18 1,88,839.46 3,40,552.20 53,447.48 Nepal 76,348.06 12,356.82 1,11,256.32 17,046.86 1,19,045.60 18,381.16 United Arab 6,64,860.25 1,14,900.33 3,91,018.78 67,736.20 99,722.30 16,040.69 Emirates Taiwan 38,017.69 6,599.13 25,366.00 4,372.95 14,591.00 2,269.68 Philippines 1,03,894.30 17,081.16 79,693.98 13,681.10 7,099.00 1,239.36 Source: DGCIS Annual Export There is a significant increase in the Imports of wheat up to approximately 300%. https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Grain%20and%20Feed%20Annual_New%20Delhi_India_2-26-2016.pdf 9 http://agriexchange.apeda.gov.in/indexp/Product_description_32head.aspx?gcode=0603 10 Rajasthan Agricultural Competitiveness Project 13
India imported around 5.02 lakh tonne wheat during last year. This year import volume may increase to 2 MMT if prices in domestic market continue to gain strength.. In the month of November- 2016 India imported around 5.41 lakh tonne wheat from France, Ukraine and Australia. Forward contract from Australia has been done for December shipment at $210 C&F per tonne. Yearly average CiF comes to $272.73 per tonne for 2015-16. This year CiF quote may move down to $205.00 per tonne as global market is expected to reel under pressure. FoB quote in Black Sea region has increased to $183 and may touch $190 per tonne by December end. As import duty is revised from 25% to 10% which will lead to increase of import volume. Also, the exports have declined by approximately 96% as compared to that in 2012-13. Table 5: India’s Wheat Trade during 2011-12 to 2015-16 Year Export Import 2012-13 6.51 0.0 2013-14 5.56 0.01 2014-15 2.92 0.03 2015-16 0.61 0.51 2016-17(April-Jan) 0.23 3.03 1.4. Rajasthan State scenario: Production Vast stretches of sandy desert, scarcity of rainfall and paucity of irrigation facilities have been restricting wheat cultivation in Rajasthan since long. But some of the irrigation projects initiated after Independence, especially the Indira Gandhi Canal, have brought about considerable improvement in the cropping pattern of the state. Currently, the state accounts for 7.49 per cent of the total wheat production and 7.24 per cent of total area under wheat in India. Over 20 districts are producing wheat and 11 are major producers. Ganganagar, Hanumangarh, Bharatpur, Kota, Alwar, Jaipur, Chittorgarh, Tonk, Sawai Madhopur, Udaipur and Pali are important wheat producing districts of Rajasthan.11 Table 7 gives the total area, production and productivity of wheat in Rajasthan in 2014-15. Table 6: Area, Production and yield of Wheat in Rajasthan during 2014-2015 (Area in - Hectares, Production in- Tonnes and Yield in - KG/HA ) Crop (2014-15) Area (ha) Production (MT) Yield (kg/Ha) Wheat 3,318,000 9,824,872 2,961 1.5. District and cluster scenario: Production The graph presented below shows the major wheat producing districts in Rajasthan in the 2015-16 and higlights Ganganagar as the highest producer of wheat in India. http://www.yourarticlelibrary.com/cultivation/wheat-cultivation-in-india-conditions-and-distribution/20924/ 11 Rajasthan Agricultural Competitiveness Project 14
Major districts producing Wheat 1400000 1200000 1000000 800000 600000 400000 200000 0 Ganganagar Hanumangarh Alwar Baran Bundi 1 2 3 4 5 Area Production Productivity (in Ha) (in Tonnes/ Bales) (in Kg/ hect) The top five districts producing wheat in Rajasthan are Ganganagar, Hanumangarh, Alwar, Baran and Bundi. Ganganagar (1037621MT) ranks first in the state followed by Hanumangarh which ranked second in the production of wheat with the production of (243714MT). Table 7: Major districts producing wheat in Rajasthan Sr.no District Area (in Ha) Production (in Productivity (in Kg/ hector) Tonnes/ Bales) 1 Ganganagar 274584 1037621 265 2 Hanumangarh 243714 973765 250 3 Alwar 213011 776427 274 4 Baran 159434 670807 238 5 Bundi 154914 646200 240 Major wheat producers in the RACP clusters are: Orai Bassi (Chittorgarh Jakham (Pratapgarh), Kushalgarh (Banswara), Phoolasar (Bikaner), Z distributary (Sriganganagar), Kheruwala (Jaisalmer), Sangod (Kota), Palayatha (Baran), Pisangan (Ajmer) 1.6. Global scenario – Wheat Flour market 12Among the various food grains such as barley, corn, lima beans, peanuts, oats, potatoes, soybeans, rice and rye, wheat remains the most widely used raw material for making flour globally. It consists of all the nutrients which are essential for human consumption and as a result, wheat flour represents the most preferred flour across the world. It provides a number of health benefits ranging from improving the body’s metabolism to controlling obesity. It not only helps in lowering cholesterol levels but also assists in regulating blood sugar levels. Wheat flour finds numerous applications in the food industry such as in the preparation of many food items like breads, pastas, noodles, wafers, bakery products, etc. Currently, factors such as population growth, increasing disposable incomes, rise in consumption of bakery products, growing health awareness among the consumers and aggressive marketing by manufacturers are strengthening the growth of the global wheat flour market. According to IMARC Group, the global 12 http://www.imarcgroup.com/wheat-flour-market Rajasthan Agricultural Competitiveness Project 15
wheat flour market has grown at a CAGR of around 1% during 2009-2016 with the total global production volume reaching around 391 Million Tons in 2016. China represents the world’s largest producer of wheat flour accounting for nearly one-fifth of the total global production. China is followed by India, the European Union, the United States and Egypt. Some of the prominent players in the global flour market are King Arthur Flour Company Inc., ITC Limited., Hodgson Mill, General Mills Inc., Hindustan Unilever Limited, ConAgra Foods Inc., Associated British Foods plc, Ardent Mills Canada, and Archer Daniels Midland Company. Several companies are offering products made with a unique baking mix and containing a variety of flavors. Leading companies are also focusing on emerging regions such as Asia Pacific and the Middle East and Africa to consolidate their market presence, observes Transparency Market Research (TMR). In some regional markets, the landscape is fairly competitive on account of domestic players who are offering locally milled flour with competitive pricing. The global flour market is projected to rise at a positive single-digit CAGR from 2014 to 2020. The market is expected to witness substantial opportunities from the rapidly growing demand for bakery products among a variety of consumers and the increasing uptake of fast food products in various populations world over. Of all the regional markets for flour, Europe is, currently, the major contributor of revenue and is projected to lead throughout the forecast period. The dominance of this regional market is attributed to the substantial per capita consumption of various flour types. The growth of the Europe market is expected to be fuelled by the increasing production of wheat to meet the burgeoning demand for bread in several nations. Based on technology, the market is bifurcated into wet and dry milling. Of these, the dry milling technology for flour is projected to hold a lion’s share of the overall revenue and is expected to rise at an impressive pace. The growth of the segment is propelled by its extensive demand, attributed to the simplicity of the process. The global flour market is primarily propelled by the rising consumption of flour and bakery products in various regions. The rapidly growing demand for fast food products in restaurants, cafes, and food chains in various developing and developed nations is bolstering the demand for flour milling. The rising demand for flour confections is expected to boost the market, especially in developing regions. Furthermore, the burgeoning flour milling industry in several emerging regions is anticipated to accentuate the market through the forecast period. The market is expected to benefit from a growing demand for bakery products with nutritional benefits and containing unique flavors. In addition, the decrease in flour prices in some regions and the development of a large number of flour mills in several developing nations is a key factor boosting the market. The advent of baking mix lines by players in developed markets and the vast growth of operations of local mills are crucial trends expected to catalyze the growth of the flour market. The growing expenditure on staple food is a key factor expected to accentuate the market. To meet a burgeoning demand for flour, there is a substantial increase in the production of wheat in some regions. In addition, the growing demand for noodles and breads in various regions is expected to bolster the uptake. Rajasthan Agricultural Competitiveness Project 16
The variability of the prices of some of the flour types in international markets and the rising popularity of gluten-free foods in health conscious populations are the key factors likely to negatively affect the growth of the market. On the other hand, advancement in milling process has led to the production of gluten-free bakeries and an innovative line of baking mix. In addition, the rising prominence of the value-added processed bakery industry in developed regions, particularly in parts of Europe, is expected to open lucrative growth avenues for market players. The growing demand for flour confections with a variety of flavors is likely to open up exciting opportunities for market players. In addition, the substantial demand for wafers and biscuits in some populations is predicted to boost the market. Furthermore, the increasing acceptance of non- gelatinized flour in the making of processed food is expected to open up promising avenues for market players. 1.7. National scenario– Wheat Flour market Processing of Atta is a highly unorganized sector in India. Traditionally, atta is mainly produced in the Chakki (grinding stone) mill and is used till date. Aroma and texture of the flour are said to be key reasons for using this Chakkis. These Chakki mills are generally smaller in capacity (max 300 kg per hour). Large Atta manufacturers will be having number of Chakki (grinders) to establish their capacity. The segment is largely dominated by the small and unorganized processors. Roller flour mills are comparatively more organized than Atta millers. Tamil Nadu, Punjab and Gujarat have the highest number of roller flour mills in the country. The average capacity of individual roller flour mills varies from 30 tonnes per day to 50 tonnes per day (8-hour operation in a day). The average recovery from the roller flour mills is around 97%, in this 56-68% Maida, Semolina/Rawa and resultant Atta 7% each, 23- 25% is recovered as bran which is used as cattle feed. The resultant Atta is fine flour compared to the Chakki Atta which is mainly used by restaurants and hotels to make specialty breads like Tandoori Roti, Kulcha and Nan etc. The Indian packaged wheat flour market comprises few national players and large number of regional and private label brands operating at pan India or restricted geographic market based on their size and capacity. In terms of volumes, the packaged wheat flour market in India was more than 2,200 thousand tons during the fiscal 2014-15, growing at healthy double digit CAGR of 15% over the past three years. The urban market dominates packaged wheat flour market in India. Urban market occupies more than 90% of the total market where as due to penetration of packaged food in rural India, rural consumers’ willingness towards the packaged wheat flour has risen to some extent. The annual per capita consumption of packaged wheat flour in India remained nearly at 1.85kg during fiscal 2014-15. However, urban market leads in per capita consumption of packaged wheat flour with almost 5.5kg, making the packaged wheat flour an urban phenomenon. North Central region is the major consumer of the packaged wheat flour in India. For the fiscal year 2014-15, in terms of value, the North-Central region comprised almost 44% of the overall India’s packaged wheat flour market. The growing numbers of working women and their inclination towards the convenient food products; will enhance the future demands of packaged wheat flour in India. If the growth trajectory remains the same, the market of packaged wheat flour may likely to be more than double the current size by the end of current decade. The marketer needs to come up with new and innovative product packaging and product proposition for differentiating themselves and for sustainable long-term growth. It is also Rajasthan Agricultural Competitiveness Project 17
expected that the consumers would eventually give more importance to the origin of ingredient and related convenience factors in case of Packaged Wheat Flour. The current growth figures look promising; however, players with strong brand image, product quality, distribution network and constant R&D for product innovation capabilities shall stay and grow in the market. However, with the entry of large number of market players having better quality, fresh and convenience- packaged flour; the wheat flour consumption trends have been shifting towards the branded packaged Atta. The rigorous advertising in print and visual media campaigning on quality, hygiene, health, convenience factors by the players are helping to heighten the sales of packaged wheat flour in the country. The Indian packaged wheat flour market consists of plenty of brands with each one trying to distinguish themselves with origin of wheat, manufacturing process, quality, taste, textures and price to attract customers. Besides the leading brands, there are more than 500 regional brands in India. Each flourmill has its own brand, sometimes more than 2 brands of packaged wheat flour. ITC’s ‘Aashirvaad’ is the market leader among the national players in branded packaged wheat flour market in India by occupying more than 35% market share where as several regional brands (produced by flourmills serving region specific market) together occupy 40%, a major share of market. Shakti Bhog with wider penetration holds almost 12% of the market share where as other national players such as Pillsbury, Nature Fresh and Annapurna occupy below 10% of the market share. The urban consumers dominate the consumption of packaged wheat flour in India that include working couples, young singles, nuclear families, health conscious individuals that consume highest packaged wheat flour in India. The various underlying factors driving the consumers for purchase of packaged wheat flour are to fulfill the basic nutrition needs, to provide convenience and time saving, lack of storage of wheat in bulk and perceived high quality of packaged wheat flour. More than 70%, health and quality conscious consumers prefer to buy specific brands of packaged wheat flour showing their brand loyalty. Due to varied geographical preferences and beliefs, to satisfy Indian consumers with standard offering remains the biggest challenge for marketers and so as the case with packaged wheat flour. The organized milling sector is relatively small with about 1,000 to 1,100 medium to large flour mills in India, with aggregate milling capacity of about 25 million tonnes, mostly milling maida (flour) and semolina to cater to institutional demand, and by-product bran flakes used as filler in the cattle feed industry. The average capacity utilization of these mills is around 45% to 50%, processing 12 million to 13 million tonnes of wheat a year. 1.8. State scenario– Wheat Flour market Jaipur, Alwar, Shri Ganganagar, Hanumangarh, Kota, Bundi and Baran are the key wheat processing clusters in the Rajasthan State. Packaged Flour market here mirrors the National scenario in majority aspects. While there is segment of consumers which still follows the traditional practice of carrying cleaned wheat to local chakkis to get their desired fineness of fresh atta. Another segment, which has grown at a fast pace in the State comprises of mostly urban population preferring packaged wheat flour. In this segment, consumers largely prefer known brands like Aashirwad aata, Shakti Bhog Atta, Patanjali Atta, Pillsbury Chakki Fresh Atta, and Nature Fresh Sampoorna Chakki Atta. Rajasthan Agricultural Competitiveness Project 18
Wheat flour products also have great relevance in the famous Rajasthan cuisine too. Rajasthani breads are made out of conventional staples of the region like corn, barley and millet which are grounded into flour. Breads are generally roasted in frying pans and served after adding ghee on each piece. Of late wheat flour has replaced these traditional grains to some extent. One of the famous delicacies ‘Dal-Bati- Churma’ comprises baked flaky round breads made of gehun ka atta (wheat flour), rava (semolina), besan (Bengal gram flour), salt, milk and ghee that are typically served after dipping with ghee. Whenever we talk of Khichdi, we consider a wholesome and healthy meal made out of rice and different pulses. However, people of Rajasthan have some innovative and nutritious preparations of khichdi that are made using wheat, jowar and bajra in place of rice. Some of the popular ones are Gehun ki Bikaneri Khichdi made of wheat and moong dal. A good number of local players have also been targeting this segment but as of now most of them mainly rely on institutional supply (particularly for maida and suji) to companies like Britannia, Parle, and other ingredient buyer industries. Some local players like Alwar Roller Flour Mills, Nav Durga Roller Flour Mill, Jindal Prime food pvt. Ltd, Satguru food products, Laxmi roller flour mills pvt ltd, LM industries, KGM Roller Flour Mill, Agarwal Roller Flour mill, etc have been targeting the institutional as well as retail clientele in the region. Their advantage, in this context, is the logistical benefit gained from proximity to some major markets. Rajasthan has proximity to large consumer markets in the region (in and around the NCR) that hold a big share in India's food consumption. 8,380 sq km of Rajasthan falls in the National Capital Region (NCR), which is around 24.5% of the total NCR. Rajasthan shares its border with five major Indian states: Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat. Flour mill units in Rajasthan have to their advantage, access to this enormous market. 1.9. Products and Applications-A brief note a. Atta: Atta is wheat flour, originating from the Indian subcontinent, which is used to make most flatbreads, such as chapati, roti, naan and puri. Most atta is milled from hard wheat varieties, also known as durum wheat that comprises 90% of the Indian wheat crop, and is more precisely called durum atta. Chakki Atta is the main ingredient of most varieties of Indian, Bangladeshi and Pakistani bread. It is a whole wheat-flour made from hard wheat grown across the Indian subcontinent. Chakki Atta is obtained from grinding complete wheat grains. Since nothing is removed from true whole meal atta, all the constituents of the wheat grain are preserved. Traditionally, atta is made by stone grinding, a process that imparts a characteristic aroma and taste to the bread. High bran content of true whole meal atta makes it a fiber-rich food. This may help to regulate blood sugar as well have other health benefits. The temperatures attained in a chakki produced by friction, are of the order of 110-125 deg C. At such high temperatures, the carotenes present in the bran tend to exude the characteristic roasty smell, and contribute to the sweetness of the atta. b. Maida: Maida flour is finely-milled wheat flour variety which is used to make Indian breads such as paratha and naan. It is also used in Central Asian and Southeast Asian cuisine. Maida is a refined product of wheat. It is extracted from the inner white portion of the wheat after the outer brownish layer is removed. After the flour is ground in a flour mill, it is passed through a fine mesh (600 mesh per square inch) to obtain maida. Though sometimes referred to as ‘all- purpose flour, by Indian chefs, it more closely resembles cake flour or even pure starch. In Rajasthan Agricultural Competitiveness Project 19
India, maida flour is used to make pastries and other bakery items such as bread, biscuits and toast. c. Suji/Rawa: Sooji or suji (pronounced soo-jee), semolina and rawa (pronounced ruh-waa) are Hindi words for granulated wheat - and all are from the same powder or flour from wheat. The word semolina is Italian in origin while sooji is the word used for it in North India and Pakistan. Rawa is the name for semolina in south India. The ingredient is not only used as a battering ingredient in many Indian dishes, but it is also used as the main ingredient in numerous foods, both sweet and savory, like Upma and Rawa Laddoo. For batters, a fine version of Sooji is used whereas when it is the main ingredient, it is used in a coarser form. Rawa or rava is best known in Rawa Laddoo, is a popular Indian sweet which is prepared on festivals like Diwali, Sri Krishna Jayanti, and Ganesh Chaturthi. Sooji Ka Halwa is another Indian-inspired dessert that has a pudding like texture. d. Bran: Bran is the hard outer layer of grain and consists of combined aleurone and pericarp. Along with germ, it is an integral part of whole grains, and is often produced as a by-product of milling during the production of refined grains. When bran is removed from grains, the latter lose a portion of their nutritional value. Bran is present in and may be milled from any cereal grain, including rice, corn (maize), wheat, oats, barley and millet. Wheat bran is fed to horses in the form of a warm porridge or mash. Bran mash is considered an excellent way to get the horse to drink more water. It is also indicated for its laxative qualities. Bran is widely used as a major component in foods for cows, buffaloes, goats, rabbits, guinea pigs, etc. Bran is particularly rich in dietary fiber and essential fatty acids and contains significant quantities of starch, protein, vitamins and dietary minerals. Bran is often used to enrich breads (notably muffins) and breakfast cereals, especially for the benefit of those wishing to increase their intake of dietary fiber. Bran may also be used for pickling (nukazuke) as in the tsukemono of Japan. In Romania, fermented wheat bran is usually used when preparing sour soups, called borscht. Rajasthan Agricultural Competitiveness Project 20
Chapter 2: Technology advances and circumstances in Wheat Flour Milling 2.1. Evolution of Flour Milling The process of flour milling dates back to Egyptian and earlier times. There are illustrations from ancient drawings showing grain being crushed using a mortar and pestle, with the resulting material being sieved to produce material of greater purity. The development that followed this was the use of millstones, first hand operated, then driven by animals and finally driven by waterpower. Millstones dominated the process used to produce flour till the 1870s, after which roller mills began to supplant them on a large scale because of the superior flour that could be produced using them. However, the gradual reduction system that was introduced at the same time as the widespread adoption of roller mills has its origins in what is now known as the ‘French Process’. The flour milling process, as it is known today, evolved between the years 1830 and 1870. It was a Manchester, U.K., based engineer, Henry Simon, who commissioned the first commercial mill using most of the technologies in use today. The important features of this mill were steel roller mills and the gradual reduction system. The advantage of the newer, more elaborate process was that higher yields of quality flour could be produced. The main feature of the gradual reduction system is the use of a large number of process stages in an extension to the French process and the exclusive use of roller mills for grinding. The principles of gentle grinding and intermediate sieving were developed upon to give the break, purification and reduction systems that are used today. 2.2. Key Advances in each step and process of Flour Milling The process of converting wheat into flour has three fundamental steps - wheat cleaning, wheat conditioning, and the milling process. All three steps impact the profitability and efficiency of the mill. Elements of the cleaning process that impact profitability include minimizing the loss of quality wheat into the screenings and cost of operating and maintaining equipment in the cleaning process. Advances in Wheat Cleaning: The production of quality flour begins with effective wheat cleaning. Critical flour quality characteristics, such as ash and color, are impacted by the cleanliness of the wheat delivered to the first break rolls. Consistency in the wheat tempering and conditioning process depends on effectively removing dust, foreign grains and other impurities from the wheat. The flour milling industry continues to develop and incorporate new technology to improve flour quality and consistency, maximize equipment utilization by reducing downtime and improve energy utilization. Recent advances Rajasthan Agricultural Competitiveness Project 21
in the process to remove the unwanted impurities from the quality wheat reflect the industry’s desire to become more efficient at producing a consistent, quality product. Screening or sieving to separate good quality wheat from foreign grains, sand, stones and many other types of course and fine impurities has been the principal method of cleaning wheat from the beginning of flour milling history. Over time, various machines have been introduced and improved upon to increase sieving efficiencies. Sifters and sifting reels to remove impurities and classify wheat by size were commonly used as primary cleaning equipment as the importance of cleaning and grading grain developed. As the operating capacities of mills increased, the use of oscillating or vibratory screeners expanded to keep up with the increased capacity requirements. Aspiration was incorporated into these designs to remove the dust and light impurities before the screening to improve effectiveness of the sieving as well. As grain cleaning technology continued to advance, machines that combined multiple cleaning principles were introduced incorporating sieving, density separation and aspiration into one machine. Combination machines allowed more wheat cleaning (capacity) to be done in a smaller space, helping to reduce the capital cost of new mills and mill expansions. New innovations in wheat cleaning reintroduce the advantages of sifting and grading wheat by size while removing impurities. These more recent advancements in wheat cleaning integrate modern technology and materials to meet the growing demand for higher operating capacity, improved cleaning efficiency and lowering the cost of operation and maintenance. Wheat scouring is another traditional cleaning principle that evolved and advanced with technology. Early applications of wheat scouring can be connected to wheat washing to remove dirt, sand and stones from the quality wheat. Wheat washing transitioned into dry scouring with the purpose of removing the dust and fine dirt particles attached to the outer surface of the wheat kernel, especially the dirt trapped in the crease of the wheat kernel. Further advancement of the wheat scouring process resulted in intensive scouring to de-bran or peel the outer layers of the bran coat from the wheat kernel without grinding or breaking the wheat kernel. Advances in Color Sorting: Color sorting was first adopted in the wheat milling industry by durum processers looking for an effective method of removing ergot contaminated wheat to produce a safer, cleaner product. The first generations of color sorters were monochromatic, sorting grain-based shades of black and white. Advances in technology incorporated the use of high-resolution bi-chromatic cameras in addition to the standard monochromatic cameras for inspection in a wider color spectrum. This allowed the detection of subtler defects and impurities. There are several companies introducing innovative machines categorized as color or optical sorters. However, these machines go beyond the optical separation of unwanted impurities by color. Recent advancements incorporate infrared and even ultraviolet sorting capabilities combined with color detection technology to enable the inspection for foreign material with invisible optical properties, such as clear glass and stones. Improvements in optical sorting go beyond the cameras detecting the defects. Better light intensity using fluorescent or halogen lighting contributes to more accurate separation of impurities from quality wheat. High-speed, reliable ejectors enable improved precision in the discharge and removal of defects once they are detected. Better distribution and uniformity of the feeders regulating the wheat into the machines have aided in increasing operating capacities and productivity. Advances in technology have reduced the price per tonne to purchase and operate improving the cost effectiveness of optical sorters. The result is a much wider application of optical sorting in wheat milling. The ability to detect and separate on the basis of Rajasthan Agricultural Competitiveness Project 22
color, size and shape with remarkable accuracy within a split second has optical sorters taking the place of more traditional disc and indent separators. Advances in Milling Wheat Stone Milling: The process of using stones to grind wheat into flour is an ancient tradition. The basic principle of a fixed “bed” stone and a rotating “runner” stone has changed very little in thousands of years. The runner stone has an eye in the center through which a controlled stream of grain is poured and the milled meal or flour travels out to the edge of the stones along grooves or furrows. The efficiency is based on the care of the stones, the setting of the stones during the milling process, the type of stone used and the “dressing” of the stones to keep them in the best condition for milling. In this process, it is important that the heat is transferred away from the flour so that it is lightly warmed rather than toasted, as too much heat will cause excessive damage to the starch and reduce its baking qualities. The surfaces of the stones are cut so as to provide “lands”, which are the raised surfaces, and furrows, which are recessed grooves. The surface of the stones tapers towards the outside so that as the flour is milled, it travels out along the furrows to the edge of the stones. For a miller, it is important that the stones are kept in just the right profile and that the gap between the stones is as accurate as possible. Too big a gap or unbalanced stones will result in coarse or poorly ground flour, which will deliver poor results in baking and fetch a reduced price. Now modern techniques can be used to ensure that the stones are dressed properly. Stone-milling means all the grains are ground in one process, all their goodness is retained, and the whole stone-ground grain imparts a good nutty flavor to the flour, with great texture. Electric grinding of grain: Atta Chakki or the stone mill or plate mill as it is known amongst food technologists was originally based on revolving granite discs with gap for feeding wheat grains and flours of any fineness can be obtained by adjusting the gap. In today’s time, larger Chakkis have been designed and adopted by the organized milling industry for use along with the standard pre-cleaning and post-grinding Rajasthan Agricultural Competitiveness Project 23
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