Rice millers, traders rig prices, exploit farmers, consumers

Srikakulam: Ineffective market rules and apathetic administrative system are indirectly helping rice millers and traders in exploitation farmers and, customers ultimately.

Normally, rice prices come down when kharif paddy crop is harvested but this year, it is climbing up. The reason for this that millers and traders have formed a ring and rigged rice prices, gradually increasing them.

As a result, price of 26 kg rice bag is Rs1,650 to Rs1,750in open market at different areas in the district. Unfortunately, farmer can’t form into syndicate to benefit by raising prices of paddy. There is no correlation between the prices of paddy and rice. Price for 100 kg paddy is Rs2,320for Grade-A as per MSP fixed by the government but millers take more than five kg of paddy on each bag in the name of wastage and moisture. After milling the paddy, miller can get 80 kg rice from it.

In addition, miller will earn extra amount by selling husk and brawn, byproducts of rice milling. Taken all these together, they can earn reasonable profit by selling rice at Rs35 a kg, but millers and traders are allegedly colluded to sell a kg rice at Rs63 to Rs67, based on the circumstances and demand in the area.

Consumers allege that selling rice at exorbitant prices is nothing but looting both farmers and consumers. Here farmers are unable to get reasonable price for their produce and consumers are also helpless in getting rice at reasonable price. Only millers and traders are earning huge profits in this episode, with no government department making efforts to regulate the trade.