Telangana Rice Mills in Deep Crisis
The Center’s choice to scrap tax rice system other than increased operational expenses has pushed the rice processing industry into profound disaster in Telangana state. The crisis has influenced the occupation of a huge number of people in towns and villages in districts without any pay rates being paid throughout the previous couple of months. Many factories have been either shut down or are very nearly conclusion in Nalgonda and Karimnagar districts, which have the most noteworthy number of these plants.
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The Rice Crisis may affect Stock Market
Despite the fact that the conclusion of rice factories might not directly affect buyers starting now because of enough stocks, the effect can be unfavourable from January 2016 onwards, when stocks weaken. Rice mill operators are looking for an extraordinary bundle and other duty motivating forces from the Ts government to spare the business from breakdown.
Presently Telangana Rice Mills
There are around 2,500 rice plants in Telangana state, of which just 200 are operational at present and the rest have gotten to be non-utilitarian. While around 1,200 plants have been set available to be purchased, approximately 600 were shut down and another 500 are nearly conclusion.
“Rice mills started suffering huge losses after the Centre decreased levy rice quota from 75 to 25 per cent last year. This year, it has withdrawn even the 25 per cent quota. Under levy system, the FCI used to procure rice from the mills for PDS across the country. Now, the state governments were asked to procure rice directly from millers for PDS through custom milling. With this, the demand for rice has come down and millers are forced to sell stocks in the open market, where there is not much demand,” said G. Narendra, president, TS Rice Millers Association.