Wednesday, January 8, 2014

Zaraei Otaque Nara & Al-Noor Rice


Report on
Zaraei Otaque Nara & Al-Noor Rice Mill 
by. MUHAMMAD MITHAL
Introduction
Zaraei Ootaque is established on 15th April 2012 at Peerano Patan near Sikandar Abad Taluka Nara District Khairpur approximately 82 Km away from Sukkur City on the right bank of Nara Canal. The model Zaraei Ootaque was developed by Mr. Umair Nazeer student of Sukkur IBA BBA-VIII, and he was further assisted by Sukkur IBA, especially by Mr. Nisar Ahmed Siddiqui. It is being financed by Mian Nazeer Ahmed Malik father of Umair Nazeer.

Zaraei Ootaque is covering different fields at same time. It is working in cultivation of its own crop, financing other formers, researching on seed production and development, and marketing other farmers’ production.
Zaraei Ootaque came into being because of following factors:
Ø  To bring the revolution in agriculture by:
·         Changing thinking process
·         Educating people
·         Introducing modern Techniques of cultivating
·         Research & Experiment
Ø  To help the farmers.
Ø  To grow the capacity of production/increase per acre yield.
Ø  To reduce unemployment.
Ø  To reduce political affects.
Ø  To remove intermediaries and to approach directly to local, national and international market.
Ø  To make country food secure.
The land occupied by Zaraei Ootaque is 200 Acres (83.33 Hectares) at Nara. Prince Mir Mehdi Raza Talpur leased this land area to Zaraei Ootaque. Before leasing to Zaraei Ootaque this land was under forests and was uncultivated.
From total area under cultivation 150 Acres is irrigated by lifting machine from Nara Canal and rest 50 acres is cultivated through Government Channel.
Main goal of Zaraei Ootaque lies on the development of Agricultural sector. Zaraei Ootaque is struggling in modernizing agriculture from traditional practices. It is providing consultancy services to farmers those who registered with Zaraei Ootaque.
Zaraei Ootaque is planned to be introduced overall in Sindh. Initailly its head office is planned to be opened at Rohri, because it is centre point. They also have planned to open franchises at Sanghar and Nawabshah.

Main Crops Cultivated

Zaraei Ootaque works in cultivating following food and fiber crops.
Food Crops
Fiber Crops
Wheat & Rice
Cotton & Sugarcane
Brinjal, Bitter Gourd, Carrots, Ladyfinger, Bottle Gourd, Radish, Garlic etc…

All of crops except sugarcane is cultivated at Zaraei Ootaque and Sugarcane is cultivated by them on 30 Acres in Ranipur.

Zaraei Ootaque product, services and Process

Zaraei Ootaque deals in following fields:
Ø  Growing Crops (Wheat, Rice & Vegetable)
Ø  Consultancy Services
Ø  Research & Experiment on Seeds and crops.
Ø  Seeds, Fertilizers, Pesticides and Fuel (All types available in local market)
Growing Crops
Zaraei Ootaque focuses specially on growing Rice, Wheat & Cotton in a well structured format of cultivation, which differs from traditional cultivation done in Sindh.
Wheat
Zaraei Ootaque following steps to get maximum output.
·         They plough deeply. (Five times tillage).
·         Land is leveled with Laser Land Leveler.
·         Give first water to the land according after checking moisture of land.
·         Sow different types of seeds according to check which seed gives better output.
·         Planting must be finished before Nov. 30 to obtain maximum yield.
·         Second time land should be irrigated 40 days after sowing.
·         Along with water Nitrogenous and Phosphoric fertilizers should be used in a ratio after measuring PH (Potential Hydrogen). Potassium fertilizer must be used if wheat is planted after rice or sugarcane. 
·         Weeds must be destroyed by using chemical pesticides if any harmful disease found.
·         Third time land is irrigated when grain is raw in the corn.
·         Harvesting should be done according to the crop ripening. Usually harvesting is done in March-April.
·         They get 2 Tons yield per Acre.
·         Expenses per acre are 32000 PKR
Rice
·         Land is deeply ploughed (Four Times to get better results).
·         Build levees of 10 by 10 feet to grow seed.
·         Seedling is done in Before 15th may to achieve maximum yield.
·         Mulching is done and land is flooded and approximately 2 inch water level is kept.
·         Best seed (Hybrid 6) is chosen and sown in land and after 1 month, half grown plants are shifted and planted to new prepared land (by laser Leveler).
·         To keep rice healthy fertilizer (Zinc) is applied.
·         When the rice is mature after 120 days the water is drained from the fields.
·         Rice is harvested through combine machine.
·         Average yield per acre is 3.5 to 4 tons.
·         Total expense per acre is 22000 PKR.
Land at every step irrigated according to fields’ need and atmospheric moisture.
Cotton
·         In spring, the acreage is cleared for planting soon after wheat.
·         The land is ploughed 4 times, leveled with Laser Land Leveler and build levees.
·         Seed (Seed type 333 VIP) is sown and irrigated.
·         Seedling is done before 15th May to get better results.
·         Firstly, DAP is used 2 bags per acre.
·         After applying needed water fertilizers (Nitrogen) is utilized.
·         With good soil moisture and warm temperature at planting, seedlings usually emerge five to seven days after planting. Approximately six weeks after seedlings appear, "squares," or flower buds, begin to form. The buds mature for three weeks and then blossom into creamy yellow flowers, which turn pink, then red, and then fall off just three days after blossoming. After the flower falls away, a tiny ovary is left on the cotton plant.
Pesticides and other chemicals are sprayed if any hazard to crop appears.

·         When crop is fully prepared, is harvested (No any technology is used.
·         Average 2 tons yield per acre
·         50,000 per acre is expense.
Consultancy Services
Expert farmers and field workers are employed for registered farmers’ consultancy. The consultancy is provided to enhance production capacity, minimizing expenses, to use technology and modern methods of cultivation.
Research & Experiment
As at Zaraei Ootaque different seed varieties are applied, so in this way they experiment the seed production per hectare. Maximum crop producing seed is sent to the market.
Initially seed were brought there from Punjab, but nowadays they are developing their own seeds at Shoaib Seed Corporation (SSC) after passing grains from different process on machines. Currently they are only working to develop seeds of Wheat and Cotton crops.
Inputs
Zaraei Ootaque facilitates to its registered member by providing variety of Inputs like seeds, fertilizers, pesticides and maintenance facilities as per need/demand at somehow smaller amount than the local vendors.
Seeds which Zaraei Ootaque is providing to members are developed by them at Shoaib Seed Corporation. Fertilizers and Pesticides are brought from different local, national and multinational companies.
 Zaraei Ootaque also facilitates the farmers by providing fuel and machinery maintenance at no extra cost and no interest at all.

Total Man Force

Total staff engage with Zaraei Ootaque consists of 25 trained farmers and one field officer. Who work on the fields of Zaraei Ootaque and also provide consultancy to its members by visiting their fields.

Complete Supply Chain of Zaraei Ootaque 

Zaraei Ootaque produces products (Rice, Wheat, Cotton, Vegetables & Seeds) itself, receives products from registered members (In this case it is mandatory upon every loan receiver that he must sell his production to Zaraei Ootaque) and also from Shoaib Seed Corporation. Also Zaraei Ootaque use to purchase Fertilizers & Pesticides from manufacturing industries and wholesalers and sell it at affordable price to farmers.

Brands of Zaraei Ootaque

Zaraei Ootaque has particular brands that have good local market share are as under:
Wheat
Cotton
1.      TD-1
2.      Sahar
3.      Shafique
4.      Ab. Sattar
1.      BT 886
2.      VIP 333
3.      (BT)Z 33 (Non BT)
4.      CIM-496

Marketing Activities

Zaraei Ootaque is involved in direct market & interactive marketing, and applies pull approach to influence customer.  Zaraei Ootaque arranged different kinds of seminars on agricultural activities to attract farmers to introduce new methodologies of farming land. They have developed face book page to convey their message and advertise their brands.

Financials

According to Mian Nazeer Ahmed the owner and CEO of Zaraei Ootaque, totally 35 million Rupees have been invested in Zarae Ootaque since it started. He said that Zaraei Ootaque earns revenue by providing loans to farmers at small interest, cultivating crops and purchasing & selling of other farmers’ production. Last season earned 1.8 Million rupees after deducting all expenses.

Remunerations

Zaraei Ootaque pays its farmers on their services half share of profit generated by the help of them.



Traditional Farming V/s Zaraei Ootaque

Zaraei Ootaque is one of the comprehensive modern farms that totally engage with agriculture sector.  The farm is being differed their self to others by following standards given as under:
1.      Checking the Moisture of Land Before Cultivating
2.      Utilization of verified Seeds by the advice of Experts
3.      Using modern Machinery
4.      Proper planning before harvesting
5.      Manage all the resource with effective manners
6.      Controlled pest utilization for the insects and other harmful diseases
7.      Recommended pesticide and Fertilizer are used
8.      Research and Experiments on crop
9.      Provides the consultancy to small and uneducated farmers
10.  Provides the Input facility to their registered members
11.  It helps the farmers to sell their products with handsome amount
12.  After cultivation of land their routine Check and balance may observed by the field officer.

Observations

1.      Ordinary and traditional water  providing methods
2.      More than two hundred acres cultivated area and only one tube well that is much time consuming method
3.      Direct and open electricity provide to tube well from transformer and the lines were naked which is harmful
4.      Centre is located in the corner of fields and it is too far from cultivated areas.
5.      The land is near to forest but no precautionary measures taken by Zaraei Ootaque
6.      There is no any equipment that is used for the emergency time
7.      The land is near to Nara canal there may be the risk of Snake and other dangerous insects so and no any medicine and other facility available there.
8.      No any instructions are being written and posted anywhere at Zaraei Ootaque
9.      Zaraei Ootaque is located at rural area that is away from Sukkur more than 80 Km. and no any other immediate facilities available in the rainy days.
10.  Tube Well that is being used for water facility is being observed outdated
11.  No proper dressing code use for the employees and Labor that made it to look like traditional one.
12.   No formal record keeping is method observed

Recommendations and Suggestions

1.      Solar system is one of the best solution for the shortage of Light, where the Zaraei Ootaque is paying heavy electricity Bills.
2.      Computerized methods should be used for the Zaraei Ootaque and its members.
3.      Demarcation of individual farmers should be visible.
4.      Formal chart of the area of Zaraei Ootaque must be posted at central visiting point.
5.      Precautionary broachers should be providing to the visitors.
6.      Assigned vehicles for Zaraei Ootaque must be named with organization.


Al-Noor Rice Mill

Introduction

Rice is a staple food for a large part of the world's human population, especially in tropical Latin America, and East, South and Southeast Asia, making it the second-most consumed cereal grain. Rice provides more than one fifth of the calories consumed worldwide by humans. Sameas whole world Pakistan is also largest rice consuming country, Pakistan is 4th largest rice producing country and it is second-most consumable cereal.
Paddy in its raw form cannot be consumed by human beings. It needs to be suitably processed for obtaining rice. Milling is a fundamental step in post-production of rice. The basic objective of a rice milling system is to remove the husk and the bran layers, and produce edible, white rice that is sufficiently milled and free of impurities.
Likewise Al-Noor Rice Mill does the task of cleaning paddy.  Al-Noor rice Mill is located at Arain near Airport road Sukkur. It is owned by Mr. Noor Muhammad Bhutto. Mr. Bhutto is oldest player of rice marketers, he has been working with rice crop since 1975, and he established Mill in 1993. It is still not registered by Government. Al-Noor currently plays significant role in rice milling and its processed rice goes for export too.
Al-Noor rice mill is one of the oldest mill Sukkur regions, mill is composed of two major units and the machinery of mill is designed & made in china and assemble in Pakistan. The following standards are differentiating mill from others.
1.      Mill is located near to main national Highway
2.      Mill has very largest capacity to store inventory
3.      Fast processing units are installed
4.      Experience and expert mill operators are employed
5.      Transportation facility available for the farmers and other vendors
6.      Bags sewing  technology available
7.      Digital measurement tools installed
8.      No intermediary concept
9.      Staff available twenty four hours on mill that provide the quick service to the customers.

Rice Mill Structure

It is planted on the area of 2.5 Acre. It has two plants working on rice whitening. One is run by owner himself and other is rented to Mudasir Hussain and Sri Chand. It also contains two offices, four godowns, one labor room to let labors get relaxed when he is tired of working.

Human Resource

Al-Noor Rice Mill has 6 labors on permanent basis and 15 people are working on contract basis. The payment pattern is as under:
Permanent Employees are paid 15,000 to 20,000 a month.
Contract Employees are paid on the basis their work. To fill or empty each truck they are provided 1200 PKR, 3 rupees to empty sacks and dry rice, and 2.5 to refill the sack. So, approximately in seasons they earn 3000 to 4000 PKR a day and in off season they earn 200 PKR.

Process of Rice Milling

At rice mill paddy is passed through eight steps to be white rice the steps are as under:
Drying
Rice is dried before starting any milling due to moisture in it. Rice is kept maximum for two day to get dried.
Elevator

Firstly paddy in its raw form put together before elevators, which takes rice to move further for other process, it works as a lifter.
China Guarder
China Guarder receives rice through elevator and crushes the paddy to remove husk from rice. This is the process where rice also get broken into small pieces.
Separator
It is the machine which separate rice from husk and also remaining paddy from rice. It moves rice forward and paddy and husk are moved back. It also works as first polisher of Rice.
SM-18 Rice Whitener
It is another machine works to polish the rice. At Al-Noor rice mill there were 3 to 4 SM-18 whitener. When rice is passed from separator, rice is kept for half an hour in open air to get cooled. After getting cooled again with another elevator it is lifted to SM-18 whiteners. First whitener polishes it little bit and sends it other whitener for further polishing process. Through this process bran layer is separated from rice.
NF-14
Rice Whiteners for whitening the rice and making it look more cleaner
Water Polishers/Silky 
Polish of rice by using a touch of water giving the rice grains a silky/pearl look.
Rotary Shifter: 
To separate all broken grains from the milled/re-processed rice. At Al-Noor Rice Mill, rice was separated into three categories full length rice, half rice and totally broken rice.

Packing
At Al-Noor Rice Mill polished and whitened rice is packed into two types sacks. One sack packed of almost 20 kg weight and other was packed of 50 kg weight.

Types of Rice

Al-Noor Rice Mill is working or processing on four kinds of rice.
1.      Super Kernel
2.      Russi
3.      IRRI-6
4.      IRRI-9
IRRI (International Rice Research Institute) actually is an institute which conducts researches on different types of rice and also introduces hybrid rice in the markets. These IRRI-6 and IRRI-9 are also its products.
At Al-Noor Rice Mills rice and it’s by products which are obtained from paddy are as under:
Type of Rice
Total Weight
Full Rice
Broken Rice
Husk
Bran Layer
Super Kernel
40kg
21-23 kg
6 kg
5 to 8 kg
3.5 kg
Russi
40kg
20-22 kg
6-7 kg
5-8 kg
4 kg
IRRI-6
40kg
20 kg
6-7 kg
5-8 kg
4-5 kg
IRRI-9
40kg
20 kg
6-7 kg
5-8 kg
4-5kg
 

Pricing

Pricing is set on the basis of quality and quantity of rice. The chart of price is shown under:
Name of product
Weight
Price of paddy purchase
Price Full Rice
Price of Half Price
Super Kernel
40
2100-2300
4500
2500
IRRI-6
40
700-900
1500 – 1700
850
IRRI-9
40
700-900
1500-1700
850
Russi
40
1600-1700
3000-3200
1500

While purchasing paddy, if someone is not paying for sacks he is charged 1kg deduction on each 40 kg. The bran and husk is also sold by Al-Noor. Bran is sold on 700 to 750 rupees per 40kg sack. Husk is sold at different price, full donkey cart of husk is charged at 750 and per 40kg costs 115 rupees on Al-Noor.
Al-Noor Rice Mill also charges on the processing of rice from people who come to get their rice whitened. All of the categories of rice are charged at same price of 47 rupees/40kg in processing.


Supply Chain

Supply for Al-Noor is mostly come from farmers’ side, rest of the suppliers

Investment & Revenue

Al-Noor Rice Mill in seasons process approximately 3,200 tons in season and approximately whole the year it process about 8,760 tons.

Contract Enforcement

There should be some rules and regulation to favor labors. The contract must be done between Mill owners and labors for particular time period to secure job of employees.

Observations

1-      Mill is not register with Government agencies
2-      Employees of mill are not insured of Job
3-      EOBI facility not available to mill staff
4-      Electricity wires are open
5-      Mill’s all processing units are not modern, advancement in technology is needed.
6-      Mill is located in urban area and the wastage may create problems for population around it.
7-      No environmental protocols followed by mill and its owner
8-      Employee safety and security tools are missing
9-      Fire extinguished are not installed
10-   Record’s are not properly managed
11-  Machines working in openly there was no any cover that protect machines from various mishaps and also protect people from accidents.
12-  No formal written Instruction were posted on machine and other precautions
13-  Mill employees do not use to wear the safety helmet and short resistant dress during the working hours.

Recommendations and Suggestions

1.      De-hydration process should be adopted
2.      From Electricity mill should move to solar energy which is cost efficient and effective for the mill.
3.      During the working hours mill labor should need to use the mask from dust.
4.      Mill may fully cover with green steel net that stop the dust to induce the air that will keep outer atmosphere healthy.
5.      Digital and automatic motors should be installed in mill that enhances the efficiency.



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