Rice (Paddy)

Author: R.B. Lestari

1 Introduction

Rice is life for thousands of millions of people. It is strongly anchored in the cultural heritage
of their societies. Rice is the staple food for more than half of the world population. In Asia,
more than 2,000 million people obtain 60 to 70 percent of their calories from rice and its
products. It is the most rapidly growing source of food in Africa, and is of significant impor-
tance to food security in an increasing number of low-income food-deficit countries. (FAO
2004)
As the world population grows, the demand for food material does also grow. Aside of that, a
big interest for renewable material arises in the industry. It does also increase the demand on
rice as a renewable resource. Therefore, the rice production should increase with better and
more efficient use of water, land and labour, while reducing the losses incurred during pro-
duction, transportation and processing. Environmental pollution due to the inappropriate ap-
plication of inputs - especially pesticides - has caused concerns. Science and technology can
enhance rice production through more efficient use of natural resources especially water.
Modern biotechnology can increase the productivity of rice varieties and provide protection
against pests, diseases and climatic variations. World rice production in 2005 is 614.7 million
tons. (FAOSTAT 2006)

2 Share of material use

Most of the rice is used as food. FAOSTAT provides for the year 2002 a global rice produc-
tion of 575 million tons, 1.9 million tons of which are reported to be used for “non-food” pur-
poses. This is a share of one-third percent. Based on this, we estimate a value of 0,5 % for
material uses. (FAOSTAT data 2006)

2.1 Material Use

2.1.1 Plant Definition

Rice refers to two species (Oryza sativa and Oryza glaberrima) of grass, native to tropical
and subtropical south-eastern Asia and to Africa, which together provide more than one fifth
of the calories consumed by humans. Rice is an annual plant, growing to 1-1.8 m tall, occa-
sionally more, with long slender leaves 50-100 cm long and 2-2.5 cm broad. The small wind-
pollinated flowers are produced in a branched arching to pendulous inflorescence 30-50 cm
long. The seed is a grain (caryopsis) 5-12 mm long and 2-3 mm thick. The word rice derives
from the Tamil word arisi. The word paddy is derived from the Malay word padi, rice.
“Rice is often grown in paddies— shallow puddles carefully controlled to ensure the appro-
priate water depth (typically 15 cm). Rice paddies sometimes serve a dual agricultural pur-
pose by also producing edible fish or frogs, a useful source of protein. The farmers take ad-
vantage of the rice plant's tolerance to water: the water in the paddies prevents weeds from
 Study: Rice (Paddy)

outgrowing the crop. Once the rice has established dominance of the field, the water can be
drained in preparation for harvest. Paddies increase productivity, although rice can also be
grown on dry land (including on terraced hillsides) with the help of chemical weed controls.”
(Wikipedia, 2006)
Abbildung 1: Mature Rice and Rice Harvest

Source for both images: Wikipedia (2006)

Abbildung 2: Cross-section of rice grain

Image source: ISI (2001)

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 Study: Rice (Paddy)

The FAO provides statistical data about “rice paddy Oryza spp., mainly Oryza sativa”, which
is “Rice grain after threshing and winnowing. It is also known as rice in the husk and rough rice. Used mainly
for human food.“ (FAOSTAT 2006)

Rice is cultivated in most countries of East Asia. Egypt and the countries of southernmost
Europe, the southern United States and Brazil are other important rice-producing regions.
Lowland rice, which is the most commonly grown type, requires an extremely moist soil, ei-
ther rain-fed or artificially flooded. A few varieties, known as upland rice, do not require
flooding. In the rice-growing developing countries, almost all cultivation is performed by
hand. In more developed countries much of the work is aided by the use of machinery. Low-
land rice is grown in a flooded field, or paddy, which is kept under water during most of the
growing season. It is drained only at harvest time. In favourable conditions, rice needs only
about three months between sowing and harvesting, and three or even four crops can be har-
vested annually. Rice mills are usually located near the growing regions. Brown rice is dried
and cleaned before it is packed. When white rice is desired, the bran is removed in special
machines and care is taken not to break the white kernel. The rice kernels are then polished
with glucose and talc in order to enhance their appearance. Rice is classified into three types:
short-grain rice, which is no more than 5 mm (3 in) long; medium-grain rice, which is 5 to 6
mm (3 in) long; and long-grain rice, which is 6 to 8 mm (2 in) long. The majority of rice va-
rieties grown in tropical regions are long grain, while most of the varieties of milder climates
are short or medium grain. (ISI 2001)

2.1.2 Possible Material Use

Rice starch can be used in textile industry, laundry industry, paper industry, pharmacy indus-
try and adhesive industry, etc. in addition to the food sector. The general application of starch
is shown in the following table.
Tabelle 1: Possible Starch use in non-food industries
Industry branch Application
Adhesives hot-melt glues
stamps, bookbinding, envelopes
labels (regular and waterproof)
wood adhesives, laminations
automotive, engineering
pressure sensitive adhesives
corrugation
paper sacks
Explosives Industry wide range binding agent
match-head binder
Paper Industry internal sizing
filler retention
surface sizing
paper coating (regular and colour)
carbonless paper stilt material
disposable diapers, feminine products
Construction Industry concrete block binder

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 Study: Rice (Paddy)

asbestos, clay/limestone binder

fire-resistant wallboard
plywood/chipboard adhesive
gypsum board binder
paint filler
Metals Industry foundry core binder
sintered metal additive
sand casting binder
Textiles Industry warp sizing
fabric finishing
printing
dusting powder
Cosmetic and Pharmaceutical Industry make-up
soap filler/extender
face creams
pill coating, dusting agent
tablet binder/dispersing agent
Mining Industry ore flotation
ore sedimentation
oil well drilling muds
Miscellaneous biodegradable plastic film
dry cell batteries
printed circuit boards
leather finishing
Medical surgical glove
(FAO 2006), (freepatentsonline 2006)
Other part of the plant that useful is rice husk and straw. Rice straw is usually used in paper
industry, rice husk will be processed as rice husk ash, but since they are not included in the
definition of rice/paddy, this material will not discussed here.

2.1.3 Primary Final Product

The primary final product is rice starch. Starch has a 70% share of the rice-grain mass.
(Wikipedia 2006a)

2.1.4 By-product
Rice husk ash is of use in steel production, but of extremely low value. Transport costs are so
high in relation to its value that the overall industrial use is insignificant (Singhania 2006).

2.2 Energy
Rice starch is not used other than in material and food applications.

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2.3 Use in Food Applications

Rice is – as already mentioned in the introduction – a staple food, essential for the nourish-
ment of billions of people.

3 Harvested area

3.1 Harvested area worldwide

Tabelle 2: Rice: Major cultivating countries
Country 1999 2000 2001 2002 2003 2004 2005
India 45.160.000 44.712.000 44.900.000 40.280.000 42.410.000 42.300.000 43.000.000
China 31.637.100 30.301.490 29.144.019 28.508.800 26.780.124 28.616.015 29.300.000
Indonesia 11.963.204 11.793.000 11.500.000 11.521.166 11.477.357 11.922.974 11.800.901
Bangladesh 10.712.955 10.801.214 10.661.000 10.771.000 10.824.000 11.000.000 11.000.000
Thailand 9.969.920 9.891.200 10.125.300 9.988.090 10.193.440 9.200.000 10.200.000
Viet Nam 7.653.600 7.666.300 7.492.700 7.504.300 7.452.200 7.443.800 7.339.500
Myanmar 6.210.787 6.302.492 6.412.537 6.381.000 6.527.975 6.000.000 6.000.000
Philippines 3.999.839 4.038.080 4.065.440 4.046.318 4.006.400 4.126.645 4.115.000
Brazil 3.813.270 3.655.290 3.142.640 3.145.870 3.186.820 3.733.160 3.936.150
Nigeria 2.191.000 2.199.000 2.207.000 3.160.000 3.531.000 3.704.000 3.704.000
Pakistan 2.515.400 2.376.600 2.114.200 2.225.000 2.461.000 2.519.500 2.500.000
Cambodia 2.079.442 1.903.159 1.980.295 1.994.645 2.242.036 2.108.840 2.150.000
Japan 1.788.000 1.770.000 1.706.000 1.688.000 1.665.000 1.701.000 1.680.000
Nepal 1.550.990 1.560.044 1.516.980 1.544.660 1.559.436 1.541.729 1.510.000
USA 1.421.271 1.230.364 1.341.700 1.297.840 1.212.860 1.345.590 1.352.880
(FAOSTAT 2006)
Rice is worldwide harvested in about 9,8 million hectare area. Rice cultivation is the principal
activity and source of income for millions of households around the globe, and several coun-
tries of Asia and Africa are highly dependent on rice as a source of foreign exchange earnings
and government’s revenue. Small-scale farmers in low-income and developing countries grow
about 80% of the world’s rice. (FAO 2004) The leading countries are India China and Indo-
nesia.

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3.2 Harvested area based on regions

Tabelle 3: World’s harvested area base on regions
Harvested area (average from 2002-2004)
Region
(in 1000 ha)
South Asia 57,315
South East Asia 42,843
East Asia 31,260
Black Africa 8,104
South America 5,341
North America 1,285
Central Africa 893
Central America and Caribbean Countries 715
Arabic Countries and Israel 669
Europe 439
Russia 133
Australian and Oceania 93

(FAOSTAT 2006)

4 Growth and Yield

The growth of the rice plant is divided into three phases:

1. Vegetative (germination to panicle initiation)
2. Reproductive (panicle initiation to flowering)
3. Ripening (flowering to mature grain)

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 Study: Rice (Paddy)

Abbildung 3: Growth Phase of Rice (IRRI 2006)

In the tropics, the reproductive phase is about 35 days and the ripening phase is about 30
days.
“The differences in growth duration are determined by changes in the length of the vegetative
phase. For example, IR64, which matures in 110 days, has a 45-day vegetative phase, whereas
IR8, which matures in 130 days, has a 65-day vegetative phase.” (IRRI 2006)

Abbildung 4: Period/growth phase (IRRI 2006)

The yield in industrialized countries area is practically higher than in developing countries
because of high intensive of mechanical input and soil stability.

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5 Production

5.1 Production worldwide

Abbildung 5: World Rice Production (FAOSTAT 2006)

World's Rice Production

700,000,000

600,000,000

500,000,000

400,000,000

300,000,000

200,000,000

100,000,000

0
61

63

65

67

69

71

73

75

77

79

81

83

85

87

89

91

93

95

97

99

01

03

05
19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

19

20

20

20
Year

Tabelle 4: Rice: Major producer countries

Country 1999 2000 2001 2002 2003 2004 2005

China 200.403.308 189.814.060 179.304.887 176.342.195 162.304.280 180.522.603 184.254.000

India 134.495.904 127.400.000 139.900.000 116.500.000 130.500.000 128.000.000 129.000.000

Indonesia 50.866.388 51.898.000 50.460.800 51.489.696 52.137.600 54.088.468 53.984.592

Bangladesh 34.430.000 37.627.500 36.269.000 37.593.000 39.090.000 39.754.000 40.054.000

Viet Nam 31.393.800 32.529.500 32.108.400 34.447.200 34.568.800 35.887.800 36.341.000

Madagascar 2.570.000 2.480.470 2.662.465 2.603.965 2.800.000 3.030.000 30.300.000

Thailand 24.172.000 25.844.000 26.523.000 26.057.000 27.038.000 23.860.000 27.000.000

Myanmar 20.126.038 21.323.868 21.916.000 21.805.000 23.146.270 22.000.000 22.000.000

Philippines 11.786.600 12.389.400 12.954.900 13.270.653 13.499.900 14.496.800 14.800.000

Brazil 11.709.700 11.089.800 10.184.000 10.457.100 10.334.600 13.276.900 13.140.900

Japan 11.468.800 11.863.000 11.320.000 11.111.000 9.740.000 10.912.000 10.989.000

USA 9.343.954 8.657.819 9.764.495 9.568.996 9.033.610 10.469.730 10.012.190

Pakistan 7.733.417 7.203.900 5.823.000 6.717.750 7.271.400 7.537.100 7.351.000

Republic of Korea 7.032.757 7.196.582 7.406.517 6.687.225 6.015.000 6.945.000 6.418.000

Egypt 5.816.960 6.000.490 5.226.703 6.105.456 6.176.266 6.352.373 6.200.000

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 Study: Rice (Paddy)

Country 1999 2000 2001 2002 2003 2004 2005

Cambodia 4.040.900 4.026.092 4.099.016 3.822.509 4.710.957 4.170.284 4.200.000

Nepal 3.834.290 4.216.465 4.164.687 4.132.600 4.455.722 4.289.827 4.100.000

Nigeria 3.277.000 3.298.000 2.752.000 3.192.000 3.373.000 3.542.000 3.542.000

Iran 2.348.241 1.971.462 1.990.223 2.888.000 2.930.000 3.400.000 3.500.000

(FAOSTAT 2006)
World production of rice steadily is about 200 million tons of paddy rice in 1961 to 600 mil-
lion tons in 2005. Milled rice is about 68% of paddy rice by weight. In the year 2005, the top
three producers were China (31% of world production), India (21%), and Indonesia (9%).
Tabelle 5: Rice yields
Yield, average from
Region 2002-2004
[tons/hectare]
Arabic Countries and Israel 9.5
Australian and Oceania 8.0
North America 7.5
Europe 6.5
East Asia 6.2
Central Africa 4.6
South America 4.0
South East Asia 3.7
Russia 3.5
Central America and Caribbean Countries 3.4
South Asia 3.1
Black Africa 1.5
(FAOSTAT 2006)
There are significant differences between yields in different regions. This can be caused by
many factors. Beside of that, these figures show that the rice yields have not reached the po-
tential yield yet (which about 10-11tons/ha) (FAO 2004). This difference is called “yield
gap”. The FAO has documented the important causes of the yield gap:

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 Study: Rice (Paddy)

Abbildung 6: The Causes of Yield Gaps (FAO 2004a)

Zur Anzeige wird der QuickTime™

Dekompressor „TIFF (LZW)“
benötigt.

5.2 Rice production by regions

Tabelle 6: Rice Production by regions
Production (Average from 2002-2004
Region (in 1000 tons)
South Asia 57,315
South East Asia 42,843
East Asia 31,260
Black Africa 8,104
South America 5,341
North America 1,285
Central Africa 893
Central America and Caribbean Countries 715
Arabic Countries and Israel 669
Europe 439
Russia 133
Australian and Oceania 93
(FAOSTAT 2006)

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6 Cost and value along value added chain

6.1 Harvesting
Rice is an annual plant. Base on IRRI information there are some ways to decide when the
rice can be harvested:
• Grains should be firm but not brittle when squeezed between the teeth.
• When 80-85% of the grains are straw-colour (yellow in colour).
• In the dry season, harvest 28-35 days after heading. In the wet season, harvest 32-38 days
after heading.
(IRRI 2006)

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 Study: Rice (Paddy)

Abbildung 7: Rice Harvesting Systems (IRRI 2006)

6.2 Starch extraction

„Reis enthält 70-75 Prozent Stärke neben 7-9 Prozent unlöslichen, eiweißartigen Stoffen, die
aber durch einweichen des Reises in ganz schwacher Natronlauge größtenteils gelöst werden.
Man zerreibt den Reis dann in einer Mühle unter beständigem Zufluss schwacher Lauge,
behandelt den Brei in einem Bottich anhaltend mit Lauge und Wasser, lässt kurze Zeit
absetzen, damit sich gröbere Teile zu Boden senken, und zieht das Wasser, in welchem reine
Stärke suspendiert ist, ab. Aus dem Bodensatz wird die Stärke in einem rotierenden
Siebzylinder durch Wasser ausgewaschen, worauf man sie durch Behandeln mit Lauge und
Abschlämmen vom Kleber befreit. Die zuerst erhaltene reinere Stärke lässt man absetzen,
entfernt die obere unreine Schicht, behandelt das übrige auf der Zentrifugalmaschine und
trocknet die reine Stärke.“ (Wikipedia 2006a)
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6.3 World Trade

6.3.1 Rice, Milled

World trade in rice does expand strongly, with a growing number of countries relying on im-
ports to meet their domestic needs, especially in Africa.

Abbildung 8: Global rice trade volume and share in global production (FAO 2004a)

Abbildung 9: Export price for rice (AO 2004a)

“Developing countries are the main players in world rice trade, with shares of 83 percent of
total exports and 85 percent of total imports. The concentration is particularly high on the
export side, since five countries (Thailand, Viet Nam, China, the United States and India)
supply about three-quarters of the trade.” (FAO 2004)
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 Study: Rice (Paddy)

“Rice prices have nearly doubled from their cyclical lows in mid-2001 and are now
expected to decline as production increases in response to the high prices. Better grow-
ing conditions, as the El Nino subsides in Southeast Asia, should also raise yields. Global
production is expected to be up only 0.7percent in 2005 compared to the previous year, but
nearly all major producers are expected to have record or near-record crops. Imports are
expected to decline 5 percent in response to increased domestic production which puts
pressure on prices. Consumption is projected to increase less than 1.0% in 2005, while
global stocks will decline as China continues to reduce surplus stocks. China and India, the
world's largest rice consuming countries, are expected to have good harvests. Major rice
exporters, Thailand and Vietnam, are expected to have large but not record crops in 2005.
The weak U.S. dollar has contributed to higher world rice prices in the past several years as
the Thai Baht has strengthened about 15percent against the dollar since 2001, but has weak-
ened significantly since March 2005. Prices of Thailand’s 5% broken rice are projected to
average $285/ton in 2005 and then decline to $275in 2006, $265 in 2007, and $255 in 2008.
This would return prices to about the midpoint of the range of nominal dollar prices over
the past 20 years of $253/ton. Over the longer term, prices are expected to decline in real
terms as supplies continue to increase more rapidly than demand.” (World Bank 2005)

Abbildung 10: Rice’s Price (World Bank, 2005)

6.3.2 Rice Starch

Lindsey Partos reported that the US starch product supplier Penford Food Ingredients targeted
at a growing demand for rice starch, for the first time adding a variety of rice starches to its
current portfolio of potato, tapioca, and corn starch products.

“The firm said the initial introduction includes a variety of unmodified and modified rice
starches that conform to non-GMO standards, meeting EU rules on food.

“We are already well known in the industry as the leading domestic supplier of potato-
based starches for food in North America. The addition of rice starch is an important step in
expanding our leadership,” said John Randall, vice president & general manager for Pen-
ford Food Ingredients.

Rice starch, a soft, white powder over twice as expensive as wheat and corn starch, is used
by the food industry for its gel strength, gelling temperature and starch granule rigidity.

Key applications for the ingredient with a tiny granule size, neutral taste, and soft mouth
feel include baby food, extruded products, soups, dressings and meat preparations.

But one of the fastest growing markets for rice starch are functional foods, forecast to dou-
ble within five years in the UK alone from €1.2 billion to €2.47 billion.
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 Study: Rice (Paddy)

Rice starches are significantly more expensive than their corn and wheat alternatives, rang-
ing from about €0.9 to €1.5 per kilogram.

Long-, medium-, and short-grain rice contain varying ratios of the two starch components,
amylose and amylopectin. Amylopectin is found in highest concentrations in short-grain
(also called ‘sticky' or ‘waxy') rice. Amylose is highest in long-grain rice—enabling these
grains to be separate and fluffy when cooked. Each possess its own unique chemistry, these
rice starches have different applications in industry. With cosmetics and tableting, the kind
of starch used is not necessarily important, but with foods, starch type does matter.

Starch from waxy rice, for example, exhibits high freeze-thaw stability. Consequently, be-
cause this starch holds water well, a food product— like Buffalo wings—will not lose valu-
able moisture or juices when it is frozen and then thawed” (Asiarice 2005)

“When aiming at functional properties in starch, most commercial companies examine the
characteristics of competitive starches in particular applications. This sets the target to
shoot for, says Morton Satin in a recent report for the UN-backed Food and Agriculture
Organisation.” (FAO 2004).

“Market analysts SK Patil and Associates estimate that total use of starch will hit 70 million
tons by 2010 on annual (global) growth of 2.2 per cent. Growth in the US at 0.65 per cent,
the EU at 0.2 per cent and Japan at 0.18 per cent will be very slight, while for the rest of the
world the market rise is pitched at 2.25 per cent.

The US department of agriculture predicts global production of rice at 401.8 million tons
(milled basis) in 2004/05, up 10.8 million tons from 2003/04.” (Asiarice 2005)

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7 Outlook

Rice is very important plant and cultivated worldwide. Sufficient investment in cultivation
and research about rice is to be expected in the future.
The harvested area and production of some industrialized countries does depend on subsidies.
If such subsidies were removed, the rice production might shift between regions.
Rice starch is used for producing pulp and paper as potato, wheat and maize starches alike.
The demand for these starches is likely to rise together with demand for pulp and paper if
these products will gain some shares of the packaging market against plastics.
Starch is also one of the raw materials that can be used for the production of bio-plastics.
According to the Fachverband Stärke-Industrie, the second largest non-food application of
starch in Europe is in “Chemie/Fermentation/übrige technische Industrie“ (FSI 2005). It is
difficult to predict much about this without a further thorough investigation of this sector,
Starch is very interesting as raw material for various biotechnological applications, as they are
expected for the next decades. These might be in 2030 and 2050 far off the value added
chains as they are known to us today. This does at once mean a great potential for growth, but
also a great source for uncertainty.
For all three scenarios, we first had a look at the pulp and paper markets. How do these mar-
kets develop?
In the low scenario, we assumed a long-term decrease due to new technologies (electronic
instead of paper media). The pulp and paper demand would however rise in the reference sce-
nario and the high scenario more strongly than the overall economy due to a partial substitu-
tion of plastics in the packaging markets.
We did see a second strong influence factor in the market for bio-plastics.
A rising price for crude oil (reference and high scenario) could enable bio-plastics to take
over large market shares from crude-oil based plastics. Starch is a primary resource for bio-
plastics, a fact that leads to a strong growth of the production of starch plants in these scenar-
ios.

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8 Data Situation

8.1 Data Source

The statistic data for cultivated area and production as well as yield is taken from FAOSTAT
(2006), or processed data from this source.

8.2 Assessing the data situation

The data quality of the cultivated area and production could not be assessed in the context of
the project. It depends, for what the data would be applied. Various possible errors e.g.
wrong estimation because of lack of knowledge of specialists in offices for statistics.
While the rice statistics are good, very little is known about the material uses of rice. We as-
sumed an analogy to the European starch usage (potato, maize, wheat starch).

9 References and Internet addresses

Asiarice 2005: http://asiarice.org/section/whatsnew/penford.htm

FAO 2004: Food and Agriculture Organization of the United Nations (FAO), Internet address:
http://www.fao.org/rice2004/en/rice-us.htm
FAO 2004a: Food and Agriculture Organization of the United Nations (FAO) (2006), International Year of Rice
2004 internet address: http://www.fao.org/rice2004/en/factsheets.htm
FAO 2006: Satin, Morton, „Functional Properties of Starches“, FAO, 2006, Internet address:
http://www.fao.org/ag/ags/agsi/starch41.htm
FAOSTAT 2006: Internet address: http://faostat.fao.org/
freepatentsonline 2006: http://www.freepatentsonline.com/6979734.html
FSI 2005: Fachverband der Stärke-Industrie (2005): „Zahlen & Fakten zur Stärke-Industrie Ausgabe 2005“,
Fachverband der Stärke-Industrie. Die Daten „basieren auf Ermittlungen oder Schätzungen der AAC,
der UFE und des Fachverbandes der Stärke-Industrie“
IRRI 2006: International rice research Institute, 2006, Internet address:
http://www.knowledgebank.irri.org/RP/growthStages/growthStages.htm
ISI 2001: International Starch Institute, internet address: http://www.starch.dk/isi/starch/rice.htm
nova 2006: Karus, M. “Die Szenarien zur Entwicklung der weltweiten Anbauflächen von nachwachsenden
Rohstoffen zur stofflichen Nutzung in 2030 und 2050“, nova-Institut, unpublished, 2006
Singhania, Narayan 2006: personal communication, sighanianp@gmail.com, 2006-03
Wikipedia 2006: Internet address: http://en.wikipedia.org/wiki/Rice
Wikipedia 2006a: http://de.wikipedia.org/wiki/St%C3%A4rke_%28Zucker%29
World Bank 2005: http://www.worldbank.org/

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