Rice mills threaten shutdown

May 22, 2014 10:27 am | Updated 10:27 am IST - BANGALORE

The Karnataka State Rice Millers Association on Wednesday threatened to shut down operations if the government failed to clear Rs. 62 crore due to rice mills for the supply of levy rice under the Anna Bhagya Scheme.

Briefing presspersons after a meeting, association executive president Vishwaradhya said that the 1,600 rice mills in the State are determined to observe a “mill bandh” agitation if their dues are not settled within a week.

This has caused concern among growers as paddy has started arriving at rice mills for hulling and the threat by rice mills to stop operations may trigger a crisis.

Cash crunch

He said that the rice mills were facing cash liquidity crunch in carrying out their daily business as the government has not paid all their dues towards the supply of levy rice for the scheme in the last three months.

About 80 mills were on the verge of closure as their money was held up with the government, he said.

He said that Chief Minister Siddaramaiah has not given them an appointment for a meeting, though they wanted to bring the issue to his notice.

Association secretary N. Srinivas Rao said that the rice mills had supplied rice worth Rs. 388.78 crore for the scheme.

The government had paid Rs. 326.73 crore, while the balance is yet to be cleared, he noted.

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