Karimnagar district has earned the distinction of having the highest number of rice mills in the State and has done a roaring business for many years. But all is not well now. Many rice mills are being closed down due to increased cost of production.
The rice milling industry has been facing severe hardships since several years due to CMR (custom milled rice) paddy. The millers have been getting Rs. 15 per quintal of raw rice and Rs. 25 per quintal of boiled rice, the price that was fixed 20 years ago. The rates are now totally uneconomical due to which the millers are facing financial crisis, said Annamaneni Sudhakar Rao, director, Karimnagar district Rice Millers’ Association.
Stating that the rice millers were incurring a loss of Rs. 140 per quintal of paddy for raw rice, he urged the government to increase the price to Rs. 170 per quintal for boiled rice and Rs. 80 for raw rice so as to make the industry viable and provide employment to rural masses. He pointed out that the rice millers were forced to shut down their units as they were unable to clear power bills of Rs. 1 lakh per month. Gopal Rao, a rice miller, said that he had invested Rs. 4 crore for setting up of parboiled rice mill a few years ago. “But now, I am ready to sell my mill for Rs. 2 crore as I have to clear bank loan and avoid incurring further loss due to crisis in the sector,” he said. The millers also complained that the yield from paddy was less because of the high moisture content and other factors.
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Naveen Rao of Rangineni Rice Industry said the industry would survive only if the government creates an open market and allows them to purchase paddy from farmers directly. Mr. Rao said that the millers in the State were forced to purchase paddy at Rs. 1,400 per quintal whereas it was Rs. 1,200 per quintal in the neighbouring States.