My Grandfather runs a Rice Mill. In his rice mill, they get the paddy… remove the husk and charge a nominal amount for the milling process. The rice owner can opt to sell the husk to the mill owner.
Normally, the farmers bring truck load or a small cart load of rice in gunny bags. So it always sounded a profitable business for him. Recently when I visited his mill, I got shocked to see that there were no one there & he was idle in the cash counter.When i questioned what happened to his mill business, he unraveled few things.
After the government announced 1Kg rice for a 1 rupee, farmers are not willing much to involve in agriculture. Also the rain did not help farmers as it did 20 years before. So now all the farmers are going for daily labour work, which fetches them 300 rupees average.
While we were discussing this, A guy came with a small bag of paddy. After my Grandpa’s completed the account with the guy,he told me that his business faced a 3 rupee potential loss with that transaction. His milling fee was 15 Rupees & the farmer sold out the 6 kg husk costing 18 rupee. If no one buys the husk from my grandfather, it might be a 3 rupee potential loss.
In village,they use husk to feed cattle. Now they opt to feed it with rice which is 66 percent cheaper from the government.
Husk is 3 Rupee per Kg & Rice is 1 Rupee per Kg!
P.S. All the rupees mentioned in this post are Indian rupees.