In the villages of developing countries, use of electricity or petroleum fuel is expensive for drying the agricultural products. In the current scenario, drying through “natural convection grain dryer” is an important alternative. This paper proposes the development and evaluation of the natural convection grain dryer in drying performance of paddy. The proposed system is capable of generating an adequate and continuous flow of hot air with range of 60-70 degree centigrade. Paddy was successfully dried from 33% moisture content to 14% (w.b). Woodchips (biomass) were burnt to heat the incoming air in the dryer. Experiments were conducted with fixed amount of sensible heat storage material with varying the amount of latent heat storage material. Increase in the latent heat of storage material indicates the improvement in standard drying temperature, time and enhancement in amount of paddy dried. Re-firing further enhances the duration of optimum temperature range for quality drying.