Paddy drying is an energy-intensive process that influences the quality of rice. In the present study, a pilot-scale reversible flatbed dryer operated with biomass gasifier was designed and constructed to dry the soaked paddy with high moisture content (38 % w.b.) in the parboiling process. The paddy dryer has a maximum designed capacity of 30 kg/batch. The performance of the dryer along with the main components of the system is evaluated using the exergy analysis method for the optimal operating condition of 75 °C drying air temperature and 0.12 m/s drying air velocity. The Hot Air Generator (HAG) is found to be the most important component for improving the system efficiency followed by the scrubber and gasifier. The Grassmann diagram for the overall drying system is also presented to quantify the exergy loss from the various components of the system components. The exergetic factor (f) and the Sustainability Index (SI) of the system components are calculated to indicate the quantity of exergy handled and environmental sustainability respectively. The gasifier unit accounts for more than 60 % amount of the total exergy of the system. The exergy efficiency is found to be 70.929 % for gasifier, 62.411 % for scrubber, 35.288 % for HAG, 11.30-76.65 % for drying cabinet with an average value of 34.81 %, and 5.267-14.44 % for the overall drying system. The average exergy efficiency of the overall drying system is found as 21.28 % respectively.