Ballari/Koppal: Severe drought has pushed Karnataka ’s rice milling industry into a major crisis, with a sharp fall in paddy arrivals forcing several mills to shut down, stalling exports and leaving thousands of workers without jobs.
Ballari has around 300 large and medium-sized rice mills, while Raichur and Koppal have about 200 each. Tumakuru has nearly 100 mills and Davangere around 50, with several others operating in districts such as Mandya, Mysuru and Hassan. Under normal conditions, a mill produces 30-50 tonnes of rice a day. However, production has now fallen to just two to three tonnes daily, or about 20% of capacity, said Paranna Munavalli, president of the state rice millers’ associations and former MLA from Gangavathi.
More than 2,400 rice mills across the state have been affected as paddy cultivation dropped by over 50% this season due to poor rainfall and inadequate irrigation. In Koppal, Ballari and Raichur, considered the rice bowl of Kalyana Karnataka, paddy transplantation has declined significantly for two consecutive seasons, leaving mills short of raw material. Rice from Ballari, Koppal and Raichur is supplied across India and exported to countries including Dubai, South Africa, the US, Oman, Sri Lanka and Singapore.
Because of the paddy shortage and unrest in the Middle East, but exports have nearly stopped this year.
Foreign buyers have shifted to suppliers in Uttar Pradesh, Gujarat, Punjab and Chhattisgarh, affecting the state’s foreign exchange earnings and local economy, Munavalli said.
Units that normally record annual turnovers of Rs 50 crore to Rs 100 crore are expected to earn only Rs 15 crore to Rs 30 crore this year. Thousands have either lost jobs or are without regular work. Stay updated with the latest Hubballi news.
The crisis has severely impacted mill revenues. Owners are struggling to meet electricity, maintenance, wage and transport costs. The downturn has also hit workers involved in drying, processing, packaging, loading and transport. Basavarajappa, president of the Ballari Rice Mill Owners’ Association, urged the government to provide concessions on minimum electricity charges to help mills stay afloat and safeguard workers’ livelihoods. Download the TOI App.