Freshly harvested paddy containing 13-19% moisture was steamed for periods of 5-30 min and shade dried. Steaming for 15-20 min was sufficient to produce satisfactory cooking quality except for moisture contents less than 15% when 20-30 min was required. Excessive steaming produced an unsatisfactory translucent product. Milling quality generally improved with increasing steaming time, but a pronounced and unaccountable increase in rice breakage occurred with a combination of 13.0-15.0% moisture and steaming times less than 10 min. Steaming which produced satisfactory cooking quality also inactivated lipases and both bran and undermilled rice from steamed paddy could be stored for 3-4 months at 38 degree C and 75% RH without free fatty acids in the oil exceeding 5-10%. Peroxide values and oxidative rancidity increased as steaming was prolonged beyond 10 min, but the overall effect of the process is considered to be beneficial.