The fine rice milling has become unprofitable, and to support the rice industry, the government has removed the Minimum Export Price (MEP) on Basmati rice and also reduced the export duty on non-Basmati rice by 10% last month. Due to higher prices of new paddy, milling costs in rice mills of Uttar Pradesh, Haryana, and Punjab have increased significantly, and the arrival of new paddy in the markets has decreased considerably. As a result, rice mills are facing a shortage of milling material, and buyers are not showing up. Furthermore, there is a risk in exports to Iran, but considering the milling shortage, the likelihood of price increases is growing. On the other hand, the arrival of Kharif paddy in Haryana and Punjab has increased, but the quality of rice produced from this paddy is not very good. This has led to an increase in the demand for high-quality rice, and milling costs have gone up as well.