A new challenge for millers as rice husk prices fall

By Vibhor Mohan

Punjab rice millers are confronting a new challenge this season owing to plummeting rice husk prices. As paddy straw is increasingly utilised as fuel for biogas plants and industrial units, the demand for rice husk, a by-product of the milling process, has considerably diminished.

In the previous season, rice husk was sold for Rs 5-6 per kg, offering rice millers a source of income to manage expenses such as electricity bills, employee salaries, and machinery repairs. However, the rapid industrial shift towards the use of paddy straw for biogas and fuel has drastically reduced the market for rice husk, with prices falling below Rs 2 per kg.

Rice husk constitutes 28-30% of the processed paddy. Punjab annually produces about 210 lakh metric tonnes (LMT) of paddy (basmati and non-basmati), generating an estimated 70 lakh metric tonnes of rice husk. While this by-product was earlier a valuable resource, the growing preference for paddy straw as a cleaner fuel source has significantly impacted its market value.

During the recently concluded procurement season, 173.65 LMT of paddy was procured through various agencies for the central pool. Punjab food and civil supplies minister Lal Chand Kataruchak announced last week that milling work already kicked off in four districts of the state.

In recent years, however, the focus on mitigating environmental concerns such as stubble burning has led to the promotion of paddy straw as an alternative fuel. Major industrial hubs like Ludhiana and Amritsar have transitioned to biomass gas and paddy straw boilers, resulting in a sharp decline in demand for rice husk.

Ranjit Singh Jossan, vice-president, Punjab Rice Industry Association, suggested that innovative solutions are urgently needed to address this crisis. “Developing industries to manufacture value-added products from rice husk or creating an efficient supply chain to transport husk to other states or countries could help alleviate the problem. Research and investment in this sector are critical to ensuring the sustainability of Punjab’s rice industry,” he said. “With the paddy milling season approaching, over 5,000 rice mills in Punjab face a significant challenge: disposing of surplus rice husk,” he added.

This article has been republished from The Times of India.