Bangalore December 17, 2013: FKCCI President Mr R ShivaKumar, has stated that the indefinite strike by the Rice millers in 23 districts in the State to oppose the levy target fixed by the government is causing untold miseries to the rice millers and to the workers who are employed in the mills.
The government had increased the target by nine times compared with last year. The government must come out with a scientific and achievable target. The mill owners will be incurring a huge loss in hulling the paddy if they levy as per the new Government order and the total loss likely to be incurred would be Rs 500 crore in the bargain.
Government was committed in providing subsidized rice to poor people involving procuring rice at a reasonable price and fulfill its promise rather than harassing mill owners.
The mill owners are operating with very meager margins of 2-3% and this additional burden will make the units left with no money even to buy the paddy. Considering the market price of rice at around Rs 35 per kg this action on the part of the government will hit the rice mill trade and the owners will look into alternative business resulting in loss to the exchequer.
It has to be a win-win situation for both the government and the mill owners and it should not cause a loss to either of them. The mill owners cannot run their mills with least or no margins and having spent money on advanced Tech equipment. Under the circumstances there is a need to find a via media to solve the existing problem.
FKCCI urges the government to have a relook at the entire situation and see to it that the indefinite strike does not prolong for long as it is not in the interest of the State and the common man. CCI Newswire
