HYDERABAD: Though Telangana stated that it will purchase raw rice from millers after procuring paddy from farmers, the government and rice millers are engaged in tough negotiations over the price for the broken rice accrued during milling. The millers are expecting Rs 300 per quintal, while the state is planning to offer up to Rs 200.
The government has begun discussions with millers. Millers in some districts are demanding Rs 300 per quintal as loss bearing fees, while the government is ready to offer Rs 170-200. The government pays 1,960 per quintal of paddy to farmers.
Due to the formation of more broken rice during milling in yasangi (rabi), only 40 kg of rice suitable for supply to Food Corporation of India (FCI) can be milled for each quintal paddy. In this season, paddy yield is likely to be around 85 lakh tonne.
After nearly 20 lakh tonne were sold to millers and others under agreements by farmers and a portion was taken by seed companies, the state government would procure the rest, 65 lakh tonnes.
If the previous practice of parboiling had been followed, the 65 lakh tonne paddy would have yielded 56.46 lakh tonne of rice, whereas raw milling would yield only 40 lakh tonne. The state would have to bear loss of 16 lakh tonne.
Sources say that millers were divided with some willing to accept the government rate and others refusing to budge. Finally, an agreement might be reached between Rs 200-250, they added.
Furthermore, while pursuing delayed procurement, the state has had to overcome a number of other challenges, such as obtaining gunny bags and rising temperatures.
"As the temperature rises, there is a greater chance of paddy breaking up while farmers try to dry it, which leads to more broken rice during milling," a miller from Nalgonda explained.. Districts with more harvest need to pick up the pace of procurement, he added.
