Kalaburagi: Despite a 15% increase in paddy production in the Tungabhadra basin, considered Karnataka’s rice belt, paddy prices have increased by 25%.
This is due to an artificial scarcity triggered by hoarding allegedly by big farmers who anticipate a substantial drop in the rabi crop as water from Tungabhadra and Almatti reservoirs will be used only for drinking due to low storage this year.
Millers procured paddy from states like Bihar to keep their units running. This led to a tussle between farmers and millers as small farmers felt prices fell from Rs 3,000 to Rs 2,400 per quintal in just one week.
However, the price has now crossed Rs 3,000 again, which farmers blame on hoarding by big millers.
Farmer leaders say millers are adulterating the famous Gangavati Sona rice with inferior paddy from other states.
Of 3.6 lakh hectares of paddy in the Tungabhadra basin, 90,000 ha belong to farmers who own more than 10 acres.
“Millers and big farmers with storage capacity are benefiting. Poor farmers cannot store paddy and are forced to sell at low rates to repay loans,” said Karnataka Rajya Raitha Sangha vice-president Mareppa Salavani.
Karnataka State Rice Mills Association executive president Purushottam Savitri said the government’s Bharat rice brand costing Rs 25 a kg has reduced demand for local paddy. He said they are forced to buy paddy from other regions to keep the mills running throughout the year.
“We will act against hoarding if there is shortage and affects people,” said Gangavathi agriculture department assistant director Santosh Pattadkal.