Date:12/05/2008 URL: http://www.thehindu.com/2008/05/12/stories/2008051252530300.htm

Tamil Nadu

Paddy to rice journey hits speed breaker

Karthik Madhavan

KANGAYAM: The paddy to rice journey has a new speed breaker: inflation.

Rice mill owners say cost of paddy, transportation and labour have gone up to only increase operation cost and shrink profit margin.

The first problem that they say they face is shortage of paddy. “As the minimum support price of paddy is low and no longer lucrative for farmers, acreage under paddy cultivation has decreased,” says K. S. Jagadeesan, advisor, Tamil Nadu Federation of Rice Mill Owners and Paddy, Rice Dealers, on the situation being faced by the owners and dealers these days. He says that the increase in minimum support price from Rs. 625 to Rs. 825 a quintal of paddy means an increase of Rs. 2 a kg.