Rajasthan:Bundi’s Basmati rice stuck at ports, factories with 10k workers may shut

The conflict in the Middle East has badly hit the rice industry in Bundi, as nearly 3,75,000 quintals of Basmati rice worth over Rs 300 crore are stuck at seaports and in storage, industry representatives said Sunday. They added that the threat of unemployment looms over nearly 10,000 workers, 60% of them from Bihar, working in about 35 rice factories in Bundi-Kota, as owners consider stopping production due to lack of storage space.

Bundi’s Basmati rice is exported to Iran, Iraq, UAE, Sudan, Turkey, Jordan, Algeria, Kuwait, and some European countries, Neeraj Goyal, president of Bundi Rice Mill Association, told TOI. He said exporters are also not able to receive pending payments; only a few major buyers released a small payment, he said.

At least 25,000 quintals of rice are processed per day in Bundi and Kota, 80% of which is exported to UAE, Iran, and Iraq, president of Bundi district’s Laghu Udhyog Bharti, Ramandeep Sharma, told TOI. The market rate of rice at the onset of the war was Rs 80 per kg, and the war resulted in a halt in exports of around 3,75,000 quintals of rice, he added.

Besides, shipping companies transporting rice to Iran and Iraq have been denied insurance due to war conditions. Sharms said the transportation costs charged by shipping companies are up by more than 10 times.

Sharma urged the state govt to provide special concessions for rice millers and labourers working in the region. He said the govt should come up with a package or special portfolio for affected industries during war conditions, as was done during the Covid-19 period.

The Bundi rice industry thrives on around Rs 4,000 crore in annual turnover, and 15 lakh tonnes of Basmati rice are produced annually in Bundi, Kota, and Baran, another rice miller, Bhanu Nyati, noted.

A few rice mills in the city have reduced production and resorted to maintenance; however, no labourer has so far been asked to stop working, said Badri Lal, a rice mill labour contractor.

“We already suffered from the effects of the Russia-Ukraine war, with a loss of Rs 1,000-1,500 per quintal, and now the ongoing war has further worsened business,” said Balwant Singh of Barkheda village in Bundi district, who cultivated 1,985 DSR over 20 bighas of farmland.

This article has been republished from The Times of India.