HYDERABAD: Rice millers in Telangana have urged the Centre to either restore the system of levy for rice mills which was in existence till 2012, or to let them procure paddy directly from the farmers and give milled rice to the Food Corporation of India (FCI).
Under the system of levy, the rice millers would be permitted to sell the rice made from paddy purchased from farmers after giving a commitment that they would give a part of the rice to the government for use in PDS. At present, the State government procures paddy from farmers at Indira Kranthi Padham (IKP) centres and Primary Agriculture Cooperative Societies (PACS) and then gives it to the rice mills. After it is converted into rice, the stock is given to the FCI by the State government, after paying applicable charges to the rice mills. The State government bills the FCI the charges paid to the rice mills.
T Devender Reddy, president, Federation of South India Rice Millers Association said that farmers were incurring an unnecessary expenditure of Rs 200 per quintal of paddy at the procurement centres (IKPs and PACS) due to various operational issues in the existing process.
Better deal for ryots
In addition to IKP and PACS, if farmers were also allowed to sell their produce directly to rice mills, he felt the farmers could be given a better price by the millers and this could ease the process of procurement.
He said also suggested that instead of following the laborious process of procuring PDS rice and distributing it to the 17 lakh families in Telangana, the State and Central governments could distribute the Rs 6,000 crore that they spend on the elaborate exercise to the beneficiaries so that they could buy whatever rice they want to, in the open market.
Parboiled rice issue
Referring to parboiled rice imbroglio, he said since there is no demand in India for this type of rice, it could be exported but the catch is that if they have to buy it at the MSP of Rs 1,850, it is not viable for them as the export price at the port is Rs 2,500 per quintal. If the millers are allowed to procure at Rs 1,500 to Rs 1,550, then it becomes viable to export out of India. Though one could procure rice from FCI through tenders, he said it was still Rs 2,100 a quintal, which is not viable.
Money instead of PDS rice
Instead of procuring PDS rice and distributing it to 17 lakh families in Telangana, the State and Central governments could distribute the Rs 6,000 crore that they spend on the elaborate exercise to beneficiaries so that they can buy whatever rice they want to, in the market, said Devender Reddy