With the Centre growing the minimal assist value (MSP) for paddy at Rs 1,940 a quintal for the present Kharif advertising and marketing season (KMS), the West Bengal authorities’s transfer to extend the quantity of financial institution assure (BG) by 10% for rice millers have put many to a quandary.
Whereas a bit of rice millers says that the rise in BG would put stress on their working capital, Bengal Rice Mill Affiliation is of the view that the rise wouldn’t matter for the reason that authorities provides paddy for milling value a lot greater than the BG. The ten% enhance is commensurate with the upper MSP.
Paddy MSP over the last KMS was `1,868 per quintal and the rise in MSP has been a bit of over 3%. West Bengal has been giving an extra `20 above the MSP as transport prices, thus resulting in an general enhance in the price of procurement.
In accordance with a state meals division official, whereas the state forked out Rs 8,460 crore for procuring 46 lakh tonnes of paddy final KMS, the state is but to get 39,000 tonnes of customed milled rice (CMR) out of the overall 31.28 lakh tonnes of CMR it’s imagined to get from the 1,100 odd rice mills within the state.
The state’s total procurement is directed in direction of benefitting the marginal farmers and supplying the meals grain to the poor individuals of the state both at freed from value or at a really low value underneath numerous state-sponsored schemes. So, any leakage would hamper the target. The federal government over the last KMS had enrolled 72 lakh farmers bringing down every farmer procurement from a most of 9 tonnes to 4.5 tonnes. This had allowed extra farmers to promote at MSP, which in any other case would have left them to rely on the unstable open market, Rathin Ghosh, West Bengal’s meals and provides minister mentioned.
The state produces round 150-160 lakh tonnes of paddy, of which the state procures between 30% and 34%.
The state in the course of the present KMS (October-September) has focused procuring 49 lakh tonnes of paddy, which can lead to 33 lakh tonnes of CMR. The procurement would value the state Rs 9,604 crore, a meals division official mentioned.
“This implies a rice mill getting 5000 tonnes of paddy for milling would get paddy value Rs 9.8 crore towards a financial institution assure of Rs 1.6 crore. So, the ten% enhance in BG shouldn’t have an effect on any mill,” Shishir Kumar Choudhury, president Bengal Rice Mill Affiliation, mentioned.
A rice mill receiving paddy of as much as 500 tonnes requires to pay a BG of Rs 16 lakh this KMS. Though the common milling capability of West Bengal rice mills is 40 tonnes a day solely mills doing 5000 tonnes and above are thought of to be giant rice mills. For giant rice mills, a ten% enhance in BG towards a 3% enhance in MSP gained’t matter however for small mills, it might put plenty of stress, Sudesh Beriwal, a rice mill proprietor mentioned including there are lapses in supplying CMR from the massive rice mill homeowners however the stress has come on the small ones.
There are contentions over the paddy: rice milling ratio of 68%, which the rice millers in West Bengal have lengthy been demanding at 63%. There are additionally loopholes within the system of supplying paddy to the mills, requiring checks, a district controller of meals on the situation of anonymity mentioned.
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