Rice prices have begun to increase sharply after less than 96 hours the govt. declared that no water will be released for summer crop in the Tungabhadra dam command area, one of the state’s largest paddy-growing regions. Interestingly, the govt has moved to conserve water due to the decision of replacing all 33 crest gates at the dam. Now, this has triggered concerns regarding decreasing paddy supply and escalating market rates. Farmers and traders threaten of a 25% reduction following excessive rain during the just-ended kharif season.
The state, known for nearly 80 lakh tonnes of paddy production annually, is anticipated to witness output drop to 60 lakh tonnes by the end of the rabi season. The worst-affected districts are Raichur, Koppal, Yadgir, Ballari, and Vijayanagara in the Kalyana Karnataka region often which is called the rice bowl of the state. Shivaraj Tangadagi, minister in charge of Koppal district and who also chairs the Tungabhadra Dam Advisory Committee defended the decision of not releasing water for crop and stated that: “The crash of gate No 19 last year was a warning. We have no choice but to replace all crest gates”.
What do the experts say regarding rice price and crest gates?
Experts highlighted that around 250 rice mills in Ballari, Raichur, Vijayanagara, and Koppal districts will battle with severe consequences which could impact both farmers and the rice industry. Now, the consequences are resonated in the markets. A rice trader from Siruguppa in Ballari, revealed the price of the popular RNR paddy variety climbed from Rs 1,950 to Rs 2,000 per 75kg bag following the announcement. Moreover, the Sona Masuri rice price, which is highly sought after both domestically and internationally, is also expected to increase.
Lack of attention to irrigation issues
Savitri Purushottam, State President of the Rice Mill Owners Association, resonated these concerns and criticized the lack of attention to irrigation issues in the region. She also said: “there is no doubt that rice prices will rise”.
Farmers ask for compensation close to Kharif crop loss package
Farmers are asking for compensation close to the kharif crop loss package including an additional Rs 8,500 per hectare and NDRF assistance also. HR Basavarajappa, state president, Karnataka Raitha Sangha-Hasiru Sene, said: “We will protest on Nov 26 in Bengaluru seeking relief for farmers. If the govt does not respond, we will shift the protest to Belagavi where the legislature winter session is scheduled to start from Dec 8”. Additionally, Experts warned that brokers may hoard rice in the black market, releasing stocks later to create an artificial shortage, further driving up rice prices.
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