Arani taluk paddy hullers change tactics post lockdown

ARANI: Post pandemic lockdown scenario which saw decreased cash flow has resulted in various changes among the 135 paddy hulling units in Arani taluk, according to sources.

This has led to 40 hullers switching over to hulling paddy procured through DPCs for the state public distribution system.

“Though we know the ‘issues’ involved when dealing with the government, we prefer this mode, as it assures returns even if it is delayed slightly,” said a huller preferring anonymity.

“The government rate for hulling is Rs 40 per quintal” added huller CS Arun.

Elaborating he said “We have to return 68 kg of rice for every 100 kg paddy we receive from the government. The advantage is that the bran and chaff percentage is what enables us to break even after paying the new EB rates as bran prices have increased from Rs 26 per kg to more than Rs 33 per kg due to the ongoing Russia – Ukraine war.”

Meanwhile, the increase in GST rates for branded and packed rice varieties has resulted in a mild slowdown in retail sales as the public is yet to come to terms with the new rates. “Retailers and wholesalers have to clear the pending stocks of rice packed in 5, 10 and 25 kg HDPE (High Density Poly Ethylene) sacks for which GST has been increased before they will indent for fresh stocks,” Arun said.

However, enquiries revealed that rice bags of more than 25 kg do not attract GST. “Hence the public will naturally move to such bags once traders also stock up on 26 kg bags, but that will take place only after existing stocks with traders are cleared” he added.

Arani taluk paddy hullers association members are keenly scrutinizing the newly announced EB rates to see if they have to petition the state government for any redressal.

Retailers and wholesalers have to clear the pending stocks of rice packed in 5, 10 and 25 kg High Density Poly Ethylene sacks for which GST has been increased before they will indent for fresh stock