Kalaburagi: The rice mills in the 'Rice Bowl' of Karnataka are in turmoil with paddy production likely to see a sharp decline this year in the command area of Tungabhadra reservoir due to inadequate storage levels in the reservoir.
Added to this is the increased maintenance cost and imposition of (GST) on branded rice which made the rice business, once highly lucrative, almost a loss making one.
The irrigated areas of Raichur, Koppal and Ballari districts where paddy is cultivated, has of late emerged as the Rice Bowl of Karnataka. Besides Raichur city, rice mills are situated in Manvi, Sindhanur, Karatagi, Gangavathi, Sirguppa and other urban centres. It is estimated that over 20 lakh farmers in these districts cultivate paddy and the mills hull and process 13 lakh tonnes of rice every year.
Apart from the paddy grown in these areas, paddy from Telangana and Andhra Pradesh are also brought and processed here. The region, which is irrigated by Tungabhadra reservoir, is known for high quality Sona Masuri rice, which has a big market not only in Karnataka but also in Andhra, Telangana, Tamil Nadu, Maharashtra, and Kerala and is exported too.
With the state government urging farmers not to cultivate a water intensive crop such as paddy this year, paddy production has almost hit rock bottom.
Usually, TB dam water is released from June end and supplied upto March end or early April depending upon the availability. But this year the authorities have decided to release water for only 90 days while urging farmers not to cultivate paddy.
"During recent years a large number of rice mills have sprouted in the region, thanks to expansion of the irrigated area. In Raichur city alone there are 102 rice mills. These mills have the capacity to hull and process 3,000 to 6,000 tonnes of paddy daily. While small mill owners have invested around Rs 2 crore to establish a mill, the bigger ones have invested upto Rs 20 crore, apart from the working capital.
The entire business is in doldrums because there is no chance of getting even one good crop this year", Mr Papareddy, President of Raichur District Rice Mill Owners Association, said.
