The Hindu Business Line : AP rice millers urge Govt to address industry woes

According to the association, paddy and rice have been notified as two separate commodities for the purpose of levy of market fee under the Andhra Pradesh Agricultural Produce and Livestock Markets Act 1966.

Hyderabad , Nov 12

THE Andhra Pradesh Rice Millers Association has urged the State Government to immediately intervene and solve the problems being faced by them.

A sizable number of rice mills had already closed down and equally good number of units were on the verge of closure.

The rice millers urged the AP Government to ensure status quo in the procurement price of levy rice, payment of incidental and transport charges by Food Corporation of India, exemption of rice from levy of market fee, exemption of gunnies from States tax when used as packing material, reduction in electricity tariff, enhancement of milling charges to Rs 40 per quintal of paddy for boiled rice and Rs 30 per quintal of paddy for raw rice, continuance of exemptions granted prior to July 2002 from filing `C' forms retrospectively till August 31, 2004 and refund of rural development cess.

It would enable the industry serve the farmers in obtaining higher price for their produce.

The representatives of the association have met the AP Chief Minister, Dr Y.S. Rajasekhara Reddy. The Chief Manager directed the State Civil Supplies Commissioner to hold detailed discussions with the rice millers and sort out issues.

He also directed the officials of the commercial taxes department to take up the issues and consider them wherever it would not cause burden to the exchequer.

On the issue of maintaining status quo in the procurement of price of levy rice, Dr Reddy assured the rice millers to take up the matter with the Central Government, the Chief Minister's Office said in a press release here.

According to the association, the Central Government had earlier announced the levy prices of rice, both raw and boiled, for the kharif marketing season 2004-05.

Though procurement price of paddy was increased by Rs 10 over the last year's price, the price for mill levy rice was not increased by single paise.

Stating that as per the ratio of paddy and rice prices normally followed, the price of rice had to be increased by at least Rs 17 per quintal, the association said the millers would be put to a great financial loss on account of the non-revision of rice prices and their ability to pay minimum support price would be severely curtailed.

The rice millers submitted to the Chief Minister that FCI stopped paying the incidental charges and transport charges for the first 8 km distance from kharif marketing season 2003-04.

The transport charges for movement of levy rice beyond 8 km were not revised for the last three years. Though the fuel charges have gone up substantially during the period, FCI neither reintroduced payment of incidental charges nor revised the transport charges despite repeated requests by the rice millers, they said.