MADURAI: Owing to a rise in demand and high prices of paddy, rice mill operators have hiked price of rice by Rs 8-Rs 10 per kg in the state. They added that the price of raw materials has increased owing to factors including hike in electricity tariff and imposition of 5% GST on food items. Rice mill operators are now requesting the government to exempt them from GST and new EB tariff.
Speaking to TNIE, P Kishore, district president of Rice Mill Owners association in Madurai, said, "The demand for rice has witnessed a surge in the international market. As there has been a drop in cultivation area, the prices have increased from Rs 40 to Rs 48 per kg two weeks back, however, it dropped slightly after the Union government imposed a 20% duty on export of rice varieties two weeks back. At present, the prices have slightly dropped to Rs 46 per kg in the open market. The price is likely to remain the same for some time owing to the prevailing situation and upcoming festive season which increases demand." He also added that the government should take steps to roll back the 5% GST on rice.
A Anbarasan, secretary of Madurai District Rice Mill Owners Association, said, "The 5% GST on rice, new EB tariff and present demand for paddy have increased production expenses from Rs 2 to Rs 3 per kg, which has led to the increase in prices by roughly Rs 8 - Rs 10 per kg in the open market. The prices may slightly drop once the harvest season starts off in Tamil Nadu as it may bring down demand. However, owing to increased production charges, prices are likely to remain higher than before."
Parthiban, a rice mill owner, said, "Owing to high demand, we are procuring paddy at prices more than Rs 1,600 per bag in the open market, which adds up to production cost. The prices are likely to ease once the harvest season begins."