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Commercial Rice Production

  1. Product Description:- Rice is a crop which about two-third of the world's population consumes as a staple food. Without rice, it is hard to imagine how the peoples of India, China, Japan, Indonesia, etc. could have survived up to the present time. Rice has unique characteristics of expanding when cooked thereby increasing the number of people to be fed per unit of rice.


  1. Market Potential:- Shortage of grains is a common problem in many parts of the Amhara Region. During the last twenty to thirty years several measures have been taken to increase food production in the Region. One of these measures was to produce rice in areas around Lake Tana. And this measure has proved successful. Today rice is being grown in areas like Dera and Fogera in the eastern shores of Lake Tana. However, large scale production of this crop has not yet started. To increase rice production in the Region and to alleviate some of the food shortages, commercial farming of rice is necessary. As there are acute food shortages in the Region, there will not be any problem in marketing the additional harvest of rice which will come from commercial production.


  1. Source of Raw material :- The main inputs for rice production are good soil, plenty of moisture and fertilizer. The first two inputs are available in areas around Lake Tana and third input will be imported.


  1. Process:- The main stages in the commercial production of rice include securing land (which can be arranged with the local farmers), preparing the land, sawing and harvesting the rice crop and packing. The main machinery needed are tractors and some agricultural tools and implements and storage facilities. 


  1. Estimated Investment:- For a rice commercial farm with about 200 hectares of farm land, the estimated investment will be:-
    1. Buildings 200m2 at Birr1500/ m2        =  Birr      300,000
    2. Plant and Machinery ………………  =  Birr      500,000
    3. Working capital ……………………  =  Birr      400,000

Total …….      =  Birr  1,200,000


  1. Benefits :- Increases food production, promotes self- sufficiency.
  2. Location :-  Dera, Fogera, Dembia.