Kota, March 16 The rice industry in Bundi and Kota is facing a production halt, putting around 10,000 workers at risk, as the ongoing conflict in West Asia has stalled export shipments to the region, and 300 crore worth of Basmati rice is stuck at seaports and storage, millers said on Monday.
Ramandeep Sharma, a rice miller and President of Bundi District Laghu Udhyog Bharti, said that at least 25,000 quintals of rice is processed per day across nearly 35 rice industries in Bundi and Kota, and 80 per cent of this rice is exported to the UAE, Iran, and Iraq.
The Iran-Israel war has resulted in a halt to the export of around 3,75,000 quintals of rice worth 300 crore, which is stuck at seaports and storage, in the past 15 days, he added.
Meanwhile, the threat of unemployment looms large over nearly 10,000 workers — 60 per cent of them from Bihar — working in rice industries in Bundi and Kota, as unit owners are considering stopping production due to the unavailability of extra storage space, millers said.
Besides, shipping companies transporting rice to Iran and Iraq have been denied insurance for transportation from seaports due to war conditions. Furthermore, the transportation costs of shipping companies have also been hiked more than 10 times, which has further adversely affected rice prices on the ground, Sharma said.
Till today, the rice market rate has crashed by nearly 10 per cent, he added.
If war conditions do not normalise and exports are not resumed in the next few days, production will have to be stopped in rice processing units, he added.
Sharma urged the state government to grant special concessions for rice millers and the labourers working there.
Gourav Nuwal, Secretary of Bundi Rice Mill Association, said the West Asia conflict has adversely hit Bundi Basmati rice exports. Ship containers loaded with rice have been put on hold due to the war, and nearly 4 lakh tonnes of rice are presently stuck at Kandla Port.
The rice export price is down to Rs 700–800 per quintal. Bundi rice millers are also overloaded with rice stored in their godowns and storages, he added.
Nuwal demanded a special relief package for the rice industry. "The government should come up with some package or special portfolio for affected industries during war conditions, as was done during the Covid-19 period," he said.
Bundi's rice industry thrives on an annual turnover of around Rs 4,000 crore, and 15 lakh tonnes of Basmati rice are produced annually in Bundi, Kota, and Baran, noted another rice miller, Bhanu Nyati.
A few rice mills in the city have reduced production and resorted to maintenance; however, no labourer has been asked to stop working, said Badrilal, a rice mill labour contractor.
"We had already suffered losses of Rs. 1,000–1,500 per quintal due to the Russia-Ukraine war, and the ongoing war has further aggravated our concerns," said Balwant Singh of Barkheda village in Bundi district.