Managerial Issues and Constraints Faced by Rice Mills in Jammu

Abstract:

The rice milling industry plays a crucial role in the agricultural economy by transforming paddy into consumable rice. Despite its

significance, rice mills face numerous managerial and operational constraints that hinder efficiency and profitability. This study

examines the key managerial issues and constraints faced by rice mills in the Jammu district of Jammu and Kashmir, analyzing

factors such as power supply, labor availability, working capital, and taxation. Data from two rice mills were collected and analyzed

to identify critical issues. The findings indicate that 80% of small rice mills experience frequent power supply interruptions, leading

to a 25% reduction in capacity utilization. Working capital constraints were a significant concern, with 70% of mill owners reporting

difficulty in accessing financial support for procurement and operational expenses. Labor shortages were prevalent, with 60% of

mill owners struggling to retain skilled workers. Additionally, taxation policies, including GST compliance, posed a challenge

for 50% of rice millers due to lack of awareness and regulatory complexity. The study recommends targeted policy interventions,

infrastructure improvements, and financial support mechanisms to enhance the sustainability of rice mills in the region.

High working capital requirement is the most critical constraint limiting rice mill operations due to difficulty in accessing timely financial support.
Frequent power supply interruptions significantly reduce capacity utilization especially in small mills lacking dedicated electricity infrastructure.