Thiruvananthapuram: It has been alleged that an unscrupulous lobby of rice mill owners in Andhra Pradesh is hoarding the available stocks to create an artificial scarcity so that they can jack up the prices and generate demand in the Kerala market.
Prices of rice in the wholesale market have shot up by a minimum of Rs 5 per kilogram over the last two days as rice mills based in Andhra have decided to stop supplies. The artificial scarcity is expected to affect the public distribution of rice through SupplyCo outlets in the coming days.
The state used to receive 12 rakes (one rake is 2,500 tonnes) of rice from Andhra until recently. However, only four rakes of rice were exported to Kerala last month. During the last one week, the Andhra rice millers refused to supply even one rake of rice to the state. With the closing down of a majority of small-scale rice mill units, big players have monopolised the rice market in Andhra and the entire distribution network has been brought under their control.
Though the association of rice mill owners claimed that the supply volume was cut down due to low production, it was evident that the millers were looking to create artificial scarcity to increase the price further.
The unprecedented trend has already started to reflect on the local retail market.
The mill owners were also irked by the nonpayment of dues by the Kerala State Cooperative Consumer Federation (Consumerfed) and the Kerala State Civil Supplies Corporation (Supplyco), it has been learnt.
The situation would lead to shortage and price rise in the open market. Jaya and Sulekha varieties of rice form a major chunk of rice export from Andhra to Kerala.
Distribution of rice at subsidized rate through the PDS had been a great relief for the common man. Now with the withholding of rice exports from Andhra, the PDS is expected to be thrown into total disarray in the coming days.
(with agency inputs)