Hyderabad: Rice millers are demanding that the government increase the price of rice proposed to be supplied at Rythu Bazaars to at least Rs 35 a kg, citing losses on account of rise in power tariff, transportation and other operational costs.
When rice prices crossed the Rs 55 mark last year, the then Kiran Kumar Reddy government had opened special counters at Rythu Bazaars to sell rice for Rs 30. However, the traders collected up to Rs 35 then.
With drought-like conditions prevailing in the state and also in the entire country even a month after rainy season started, rice millers and traders expect rice production to come down sharply this year.
They are regulating the supply of old rice stocks to open the market with an aim of making money once the price soars. This has led to short supplies in the retail market leading to escalation in prices.
“The price of fine quality rice hovered between Rs 40 and Rs 45 a kg till April end. However, the price shot up over Rs 10 per kg within one month following reports of impending drought this year in the country. There is no sowing of paddy so far. The supplies to markets have come down significantly. If the same situation continues, it will not be surprising if the price crosses the Rs 60 mark soon,” said B. Devender, a rice trader.
Meanwhile, the civil supplies department has been insisting that rice millers sell rice for Rs 30 a kg at Rythu Bazaars. Civil supplies minister Etela Rajender already held meetings with rice millers twice, but the millers agreed to supply only if the rate is enhanced to Rs 35 a kg. The state is likely to hike the price to ' 35 in a couple of days and begin sale of rice at Rythu Bazaars.
