Rice mill owners look for alternative businesses
The State Government policies have been allegedly forcing the rice mill owners to close down their businesses. In fact, during the kharif season this year, not less than 20 rice mills were shut down their businesses and the mill owners switched over to alternative vocations.
Kamareddy: The State Government policies have been allegedly forcing the rice mill owners to close down their businesses. In fact, during the kharif season this year, not less than 20 rice mills were shut down their businesses and the mill owners switched over to alternative vocations.
Many more mills are on the verge of closure. In the past, the rice mill owners enjoyed a lot of clout. Banks used to advance loans to them and politicians used to patronise them. The mill owners used to conduct their businesses extending necessary financial support to farmers. But the government policies allegedly proved to be a threat to the rice mills.
Some of the rice mill owners are not in a position to repay the bank loans given to them. A situation has arisen where banks have no alternative except to seize the properties. There are 89 rice mills in the district, but only 69 mills milled paddy this season and the rest of the 20 mills remained closed.
The State Government sent 1.07 lakh tonnes of paddy, purchased by the paddy purchase centers, to the rice mills for milling. After milling the paddy, the rice has been entrusted to the Civil Supplies Corporation.
As against the earlier practice, custom milling was through for three months. The rice mills remained idle for about three months waiting for farmers to get their harvest. As the rice mill business has been severely affected, clashes between rice mill partners became more common.
Earlier, the rice millers used to purchase paddy directly from farmers and the milled rice was sold by them. Some of the millers used to export the rice to other states and even to other nations. With the entry of Farmers’ Cooperatives and IKP outlets in paddy procurement business on behalf of the State Government, the rice mills are facing severe crisis.
Further, management of the rice mills has become difficult. Many mills are not in a position to afford the wage bill expenses of their workers because of the drop in business.
Over 15 rice mills were closed in the district during the past two or three years. In each mill, at least 20 to 30 workers used to work, including drivers. With the closure of the mills, the workers were driven on to the streets.
The rice millers have decided to close down their mills in villages around the town and some are keen on developing real estate ventures in the rice mill site. Some rice mill owners vanished from the town unable to clear the debts. Banks obtained orders to attach property of some of the rice mills from the court.
