Rice mill owners warn of Rs 5-10/kg price hike, want govt to step in

BENGALURU: Rice mill owners have threatened to increase the price of rice by Rs 400-800 per quintal if the Karnataka government does not bail them out of their current dire situation due to soaring electricity bills, pending arrears for two years, and the authorities' efforts to regulate them under the APMC Act, reports Niranjan Kaggere.
The Karnataka State Rice Millers Association (KSRMA) on Tuesday said that the price hike could affect the kharif yield, to be harvested between September-October. So end-users of rice may have to cough up an additional Rs 4-5 per kg for lower-grade varieties and Rs 8-10 for premium varieties.
The move comes even as the government is struggling to mobilise sufficient rice for its Anna Bhagya scheme.
Pointing at the mounting losses incurred by rice mills over the years in Karnataka, Karnataka State Rice Millers Association (KSRMA) urged the government to intervene and bail them out.
Savitri Purushottama, executive president of KSRMA, expressed concern over the burden placed on both farmers and mills with regulation of mills under the APMC Act. "Regulating mills under the Act will benefit neither farmers nor mills. Nevertheless, we will be asked to pay service charges which will eventually be passed on to the consumer. The steep hike in electricity tariff has made it difficult for mills to survive and the same will be transferred to consumers by raising the price of rice," she added.
Karnataka has around 2,000 rice mills and produces 30-40 lakh metric tonnes of rice annually. Barring Vijayapura, Bagalkot and Dharwad districts, there are rice mills in every district, particularly in Cauvery, Tungabhadra and Krishna river basins. Currently, about 1,600 mills are active. Despite cooperating with the government for milling rice required for its public distribution system, the state government owes the mills Rs 15.7 crore for the last two years, officials said.
The KSRMA office-bearers revealed that rice mills are largely seasonal agro-industries in rural and semi-rural areas. "The mills operate to their fullest capacity only six months a year. During non-season, the mills are idle. Rice mills pay minimum charges ranging from Rs 3 lakh to Rs 5 lakh per month per mill for their installed capacity of electric installations. However, with the revised tariff, these minimum charges will touch Rs 10 lakh per mill. The substantial hike will make milling an expensive activity and many are on the verge of closure," Purushottama explained.