Unmilled rice, known as "paddy" (Indonesia and Malaysia: padi; Philippines, palay), is usually harvested when the grains have a moisture content of around 25%. In most Asian countries, where rice is almost entirely the product of smallholder agriculture, harvesting is carried out manually, although there is a growing interest in mechanical harvesting. Harvesting can be carried out by the farmers themselves, but is also frequently done by seasonal labor groups. Harvesting is followed by threshing, either immediately or within a day or two. Again, much threshing is still carried out by hand but there is an increasing use of mechanical threshers. Subsequently, paddy needs to be dried to bring down the moisture content to no more than 20% for milling.
A familiar sight in several Asian countries is paddy laid out to dry along roads. However, in most countries the bulk of drying of marketed paddy takes place in mills, with village-level drying being used for paddy to be consumed by farm families. Mills either sun dry or use mechanical driers or both. Drying has to be carried out quickly to avoid the formation of molds. Mills range from simple hullers, with a throughput of a couple of tonnes a day, that simply remove the outer husk, to enormous operations that can process 4 thousand metric tons (4.4 thousand short tons) a day and produce highly polished rice. A good mill can achieve a paddy-to-rice conversion rate of up to 72% but smaller, inefficient mills often struggle to achieve 60%. These smaller mills often do not buy paddy and sell rice but only service farmers who want to mill their paddy for their own consumption.
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