The Union government has asked Telangana to promote establishment of ricebran oil industry to tide over the crisis, as the recent controversy over parboiled rice procurement is set to trigger a political storm in the State.

The Union Ministry of Consumer Affairs and Food has asked the State to develop capacities for manufacture of fortified rice kernels (FRK), besides setting up facilities to blend the FRKs with the regular rice.

“The State government must facilitate availability of fortified rice to cater to the requirements of the State and the Food Corporation of India (FCI),” the Ministry said. As it allowed a one-time purchase of parboiled rice from last year’s output, the Ministry insisted that the State give it in writing that it wouldn’t offer to sell the parboiled rice to the FCI again. “If they go for fortification, it will ease up the situation and facilitate procurement,” a FCI executive said.

Rice millers, however, said that creating capacities for making fortified rice wouldn’t happen overnight and that it would require additional investments and skill sets to do that. With the FCI refusing to procure rabi paddy from the State, farmers and Opposition parties are asking the State government to buy the produce.

Cautioning the farmers not to grow paddy in the rabi season as there won’t be any takers, Telangana Chief Minister K Chandrashekar Rao demanded the CentreUnion Government to purchase the produce.

Solutions

The Federation of South India Rice Millers’ Associations wants both governments to allow farmers to send the produce directly to the mills to help them save on costs and time.

“The government can continue the procurement process through the regular channels of Primary Agricultural Cooperative Societies and self-help groups. If they allow us to directly take the paddy from farmers, it will encourage competition,” Thudi Devender Reddy, President of the Federation, said, He also wanted the government to implement the direct benefit system in the public distribution system and deposit money directly to the accounts of the beneficiaries. “If it is done, it will ensure a better demand-supply situation in the market,” he said.

The Federation also wanted the government to encourage export of rice to tide over the crisis. “There is a mismatch in the procurement price and export price. While the cost of procurement has gone up by ₹400 a quintal in the last seven years, the export price has come down by ₹200 to about ₹2,400,” Satyanarayana, a rice miller said.

“The Government should offset this difference to encourage the millers to export rice. Instead of storing the produce for years in the godowns and then selling it at a loss, the government should look at exporting rice,” another miller said.

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