In order to encourage the local entrepreneurs to set up rice bran oils in Punjab, Chandigarh-based valuers (those who evaluate properties, plant & machinery) under the aegis of Institution of Valuers, would provide their expertise to the agriculturists and entrepreneurs in setting up such units.
Although, Punjab has over 3,600 rice mills and installed capacity is 6,800 tonnes per day, as far rice bran oils mills (extract oil from rice bran) are concerned it would be between 40-50 units.
So there is immense scope for rice bran oils in the state. Rice oil is very popular in India as vegetable oil, which is being extracted from rice bran. Some of the units which are situated near cluster of rice mills are doing very good business in this region and are operational at Dhuri and Zafarwal in Punjab.
Further, Punjab has over 27.50 lakh hectares under paddy cultivation this Kharif season and is expecting a total production of 162.93 lakh metric tonnes, so there is win-win situation for rice millers and rice bran oil mills.
Speaking to Business Standard, chairman of the Chandigarh branch of Institution of Valuers, B L Luthra said, "There is immense scope for rice bran oil in the domestic market. Visualising the potential, we are planning to encourage entrepreneurs to set up new oil mills near rice mills. The estimated cost of the machinery unit is about Rs 6 to 7 crore. It is our duty to guide the agriculturist/farmers to form cooperative societies and the government should guide these societies to install such units and banks should give financial assistance to such societies. Government should also create infrastructure to strengthen to the cooperative societies, farmers and give them necessary guidance as well as financial help so that the paddy crops as processed efficiently and benefit the society.’
" Our valuers would guide the farmers, entrepreneurs to utilise the financial assistance and timely pay the installments to financial institutions and new become defaulters, " he added.
Expressing concern over rising NPAs and wrong valuation, Valuers has sought valuation charges from banks in accordance with the rates prescribed by the Institution of Valuers guidelines. Alternatively, they had also suggested that the RBI should frame a reasonable one scale of valuation fee for all banks.
According to them, most of the banks are not willing to pay in accordance with the guidelines, which has resulted in wrong valuation, leading to non-performing assets.
