The Bhandara district is popular for its large production of rice and popularly referred as the 'Rice Bowl of Maharashtra'. Tumsar, a tahsil town, is a famous rice market. The rice mill cluster of Bhandara is more than 5 decades old and there about 243 rice mills (mostly micro scale) and many rice brokers and agents in the cluster. In fact, many millers are paddy farmers who have now also undertaken rice milling activity.

The rice mill cluster of Bhandara district has many advantages in terms of plenty availability of raw material paddy, good connectivity logistically, good faith and camaraderie between cluster members and farmers, active association, etc. However, millers in the cluster suffer from low profitability, largely due to lack of capital to invest in technology and capacity upgrading. The lack of funds has inhibited millers investing in capital intensive advanced technologies. The cluster firms here are yet to upgrade in terms of advanced technology silky
polishers, color sorters and other rice milling equipments. Also there is critical unavailability of paddy ageing (steaming), by-product bran primary processing (Solvent Extraction), quality packaging, testing and storage facilities in the cluster. Under such circumstances, the cluster has been facing a situation of mere survival, as it faces  competition from stronger cluster in region as well.

Cluster Profile