Red Rice

Machkhowa Red Rice & Allied Agro Cluster

Background

Background: The proposed project focuses on developing the value chain of Bau Dhan, an indigenous red rice variety traditionally grown in Dhemaji, one of Assam’s most flood-prone districts. Cultivated for generations by ST and marginal farmers, Bau Dhan is celebrated for its nutritional richness, including high iron, antioxidants, and fiber, and its cultural importance in local communities.

What sets Bau Dhan apart is its adaptability to waterlogged and low-input conditions, making it a climate-resilient crop especially suited to Dhemaji’s challenging agro-climatic conditions. It plays a crucial role in food security and seasonal income, particularly for smallholder farmers affected by recurring floods.

Despite these strengths, Bau Dhan remains largely absent from formal markets due to lack of organized processing, value addition, and branding. Most farmers sell unprocessed rice at low prices to local traders, receiving minimal returns for a high-potential product.

This project envisions establishing a sustainable agro-enterprise ecosystem around Bau Dhan through organized production, scientific processing, eco-friendly packaging, and national market linkage. A Farmer Producer Company (FPC) will lead this effort, ensuring local ownership and fair price realization. Infrastructure such as a Common Facility Centre (CFC) will support activities from aggregation to branding.

By strengthening the value chain, the project aims to enhance farmer income, promote climate-smart agriculture, and position Dhemaji’s red rice as a premium product in national health-conscious markets. It also seeks to revive traditional knowledge systems, boost rural entrepreneurship, and create a replicable model for flood-affected regions.

In doing so, the project will empower Dhemaji’s farmers to turn a traditional, under-recognized crop into a viable economic opportunity and a source of regional pride.

Objective & Scheme

Objective: Establish a sustainable, export-ready agro-enterprise by organizing red rice production, enabling value addition, and creating market linkages through a locally managed Farmer Producer Company.

Scheme: SFURTI, under MoMSME, Government of India.

Targeted Region & Communities

Map of Dhemaji

Dhemaji, Assam

Total Number of Beneficiaries

800

Photo Album

(Insert 2-3 photos each of farmer interaction, rice cultivation, processing machines, and products)

Expected Project Outcomes

  • • Farmer Income Growth: Monthly income expected to rise from ₹2,400 to ₹8,082 by Year 5, with cumulative gains of ₹3.86 lakhs per farmer.
  • • Total Payouts: Over ₹5.15 crores earned collectively by farmers from raw material sales alone.
  • • Market Linkages: 75% of produce sold to SPV, reducing trader dependency and improving price realization.
  • • Value Addition: Farmers gain premium returns through branding and processing of red rice and allied crops.
  • • Institutional Strengthening: SPV becomes self-sustaining by Year 3; farmers trained in quality control and business operations.
  • • Social Impact: Empowers ST and marginal farmers, promotes climate-resilient farming across 1,500+ hectares.