The rice mill sector in the Khammam district is headed for main problem after the strong power cuts and no minimum support pledge by the government. This led to verge of closure to maximum rice mills in the district mainly of parboiled rice and these mills have been affected so badly that to think about their revival is almost impossible task.

The situation in the district is that about one third of the raw rice mills and 2 of the 32 parboiled units are functioning.

The closure of parboiled mills has deprived 3000 people of work and same with the case of workers of raw rice mills.

Food Corporation of India (FCI) has said that they will take only 25% of the total rice production as a tax from rice miller per year at which R. Venkateswara Rao, a rice miller was found quoted as saying that this is a huge amount to the farmers to pay. Rice millers on this issue have already talked to the state government and they are approaching to the centre government.

Rice production in the neighboring state is up like in Tamil Nadu, Kerala, West Bengal and Odisha. Production of finer varieties of raw rice was also affected in Khammam district because of the delayed supply of water to the command area of Nagarjunasagar left canal.