The bonus announced by the Chhattisgarh government on paddy has hit rice mills located in the state.
Farmers are preferring to sell their harvest in the government-run societies to get the bonus of Rs 270 for a quintal of paddy, paddy arrival in the Mandis has come down by more than 50 per cent.
Rice millers and private traders are purchasing paddy from mandis.
The Bharatiya Janata Party (BJP) government had announced in the party manifesto a bonus to farmers if it retained power in the state.
After assuming charge for the second time , the BJP state government in its first cabinet meeting approved the proposal of giving bonus to the farmers.
The farmers in Chhattisgarh now stand to get Rs 1150 for a quintal of "A" grade paddy as minimum support price (MSP) with bonus. The farmers were earlier getting Rs 880 for the better variety or Grade 'A'.
The millers have been purchasing paddy for Rs 950 per quintal in the mandis.
"Paying higher price that this and milling the paddy will now not be a fair deal for the private millers," the traders said. If the state government failed to give some concession, the millers would be left with no other option than to close the mills.
About 1450 rice mills are running in the state. The millers have urged the state government to intervene. They have threatened to stop the mills from Monday if the government failed to find out some solution.
"The decision of Chhattisgarh government to give bonus to the farmers is a welcome step provided the rate of custom milling is also increased in the interest of rice millers," President of Chhattisgarh State Rice Millers Association Yogesh Agrawal said. The state government should also make levy paid by the millers free, he added.
