Winds of change are blowing over Tiruchi's rice mills. Millers in this region are now on a modernisation mission.
Moreover, the mills now cater to the open market also. Earlier, these mills used to supply rice exclusively to state government-run public distribution system.
As part of the change in outlook, all these mills are now modernising its equipment and sourcing high quality paddy from local markets and neighbouring states.They have also started broadening their market in domestic and foreign shores.
The transition has been happening over the last two years in the paddy growing area with the removal of restrictions on rice and paddy movement, abolition of stockholding limits and the larger role of private trade after the government stopped monopoly purchases.
According to office-bearers of Tiruchi District Rice Mill Owners' Association, the lifting of restrictions under the Essential Commodities Act like paddy movement and stock limits have helped the millers expand their markets.
As a result, the millers are expanding capacity and setting up modern equipment to improve quality. There are over 140 rice mills in the district with an average capacity of about 30 tonne a day. A few mills handle about 50 tonne of paddy.
The millers are improving the facilities and adding equipment such as graders, sorters and polishers that improve the quality and finish of the grains.
Farmers in the area were also diversifying into varieties that are popular in the open market rather than targeting the public distribution system.
In the last two years the area under 'Bapatla', a rice variety that is popular across Tamil Nadu, Karnataka and Andhra Pradesh, is on the increase. Millers were also looking at neighbouring states to buy paddy for processing.
However, one concern is the fear that the Centre may impose stock restrictions on the rice millers as part of its approach to controlling commodity prices. If that happens, the millers in the region will be hit hard.
The free movement of rice and paddy has only helped control prices, says a trader.
According to millers in the area, Tamil Nadu can be a low cost supplier as compared to Karnataka or Andhra Pradesh of non-Basmati rice to the export market. At Rs 15 a kg for the 'Bapatla' variety, Tamil Nadu has a competitive edge over other states which sell at least Re 1 higher.
