West Asia crisis proves to be a millstone around rice mill owners' necks in Karnataka

Koppal: Owners of rice mills here are a worried lot as the West Asia conflict intensifies.

Usually, rice yield from December-end and January in the region is exported to various countries. 

Loads of the produce meant for exports are waiting to be picked up at different ports, while in some cases, lorries have returned to the godowns from the ports with consignments that could not set off to their destinations, especially in the Gulf region.

Another challenge stares owners of the rice mills in the face. With tonnes of export quality rice not moving out of the granaries owing to the war, they are now worried about the lack of space to store the fresh yield from the fields expected in a month. 

Top quality sona masuri rice is grown in the Tungabhadra basin districts of Koppal, Vijayanagar, Ballari and Raichur and commands huge demand overseas.

Rice mill owners have already paid farmers for the paddy output bought from them. With stocks meant for markets abroad stuck in the godowns, they fear huge losses.        

The state is home to 4,000 rice mills and owners have to pay salaries to workers there, besides paying the power bills. 

The situation is no different in Gangavathi taluk of the district, considered the rice bowl of the state. 

Paddy sowing was below par in January as less water was available for irrigation owing to reduced storage in the Tungabhadra dam, whose crest gates are being replaced. 

So, even the comparatively low rice yield this season has not been exhausted, with exports halted, say rice mill owners. 

The crisis has had a spillover effect, with prices of rice plummeting. One quintal of old sona masuri rice is selling at Rs 5,400 to Rs 5,600. The prices of new rice are Rs 200 less than old rice, Sanjay, a trader in Koppal, told DH.