Ishwardi’s rice mills face existential crisis

Hundreds of traditional husk rice mills have been facing an existential crisis as auto rice mills, rising costs and labour shortages squeeze their operations in Ishwardi, Pabna.

Once a thriving rice-trading hub, Jaynagar had rows of rice mills and drying yards along the nearly seven-kilometre road from Velupara to Rooppur in Pakshi. The upazila once had 706 husk rice mills, but only around 60-70 are now operating.

Most of the closed mills have been abandoned, while some drying yards have been rented out for garages and other purposes. Around 20,000-30,000 workers have also changed professions, according to people involved in the industry.

Alhaj Shamsul Alam, president of the Ishwardi Upazila Rice Mill Owners’ Group, said, “Husk rice mills are facing a crisis because of electricity prices, demand charges, meter rents, price discrepancies between paddy and rice, and higher production costs than auto rice mills. Many owners have lost their capital and become loan defaulters.”

According to the Ishwardi Upazila Rice Mill Owners’ Group, all 706 mills were once members of the organisation. Although around 100 members remain, only 60-70 mills are currently operating. Even these mills are struggling due to prolonged losses, debt and a shortage of working capital.

Rashidul Alam, a rice mill owner from Charmirkamari on IK Road, said, “Husk rice mills have been closing because of higher electricity bills, labour shortages, unpaid dues after supplying rice to different markets and competition from auto rice mills. Many owners borrowed money and became loan defaulters after suffering losses.”

Local traders said Jaynagar was known as the country’s second-largest rice-trading hub from 1988 to 2010. Paddy was brought from different districts and processed at local husk mills. Numerous mills operated along both sides of IK Road from Velupara to Rooppur, while hundreds more operated in Dashuria, Awtapara, Chilimpur and Muladuli.

More than 100 rice agencies developed around these mills, supplying rice to Dhaka and other cities across the country.

The situation changed after the expansion of auto rice mills after 2010. Currently, 17 auto rice mills are operating in the upazila. Equipped with modern technology and lower production costs, they quickly captured the market, leaving traditional husk mills struggling to compete.

Rayhan Pramanik, a mill owner from Awtapara, said, “The production cost of auto rice mills is much lower than ours. It is impossible to survive by competing with them. Labour shortages and rising wages are also major problems.”

Rice mill owners have demanded low-interest loans on easy terms, lower electricity costs and realistic prices for rice supplied to government food warehouses.

Mahabul Alam Dulal Sardar, general secretary of the Pabna District Auto Major Husk Rice Mill Owners’ Association, said, “Auto rice mill owners receive large loans at low interest rates, while husk rice mill owners have to operate with high-interest loans. Unable to repay loans because of losses, many have sold or closed their mills.”

Mill owners said processing paddy into rice takes 8-10 days in a husk mill, compared with only one or two days in an auto rice mill. Faster production and lower costs have made it increasingly difficult for traditional mills to remain competitive.

Ishwardi Upazila Food Controller Md Shahinur Alam said around 80 rice mills are on the government list for rice procurement. Allocations are made according to production capacity, generally ranging from 7 to 25 tonnes. Auto rice mills receive higher procurement targets because of their greater capacity.

Ishwardi Upazila Agriculture Officer Md Abdul Momin said, “I have heard that there were more than 700 husk rice mills in the upazila. The number has now declined significantly. Paddy cultivation here is comparatively limited, and paddy is brought from other districts for processing. So, the closure of husk mills has no direct impact on local paddy cultivation.”

According to those concerned, the complete closure of the husk rice mills would affect not only mill owners but also thousands of workers and people involved in the paddy and rice trade.

Once an important foundation of Ishwardi’s economy and employment, the traditional husk rice milling industry is now struggling for survival as modern auto rice mills continue to expand their market share.