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“You cannot sell below cost without aid, these will be hard times”

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“You cannot sell below cost without aid, these will be hard times”

“We are sorry we had to raise the prices of our products, but it was necessary given what is happening with the costs of electricity and raw materials.” Maria Grazia Tagliabue, president of SP, a rice mill based in Stroppiana, is sorry for the customers who stop to buy rice and other products in the shop, on Statale 31 that connects Vercelli with Casale Monferrato: the operating costs of the plants, technologically all avant-garde, have skyrocketed. And one of the inevitable consequences is that SP had to make an increase in the one kilo package of Carnaroli: from 2.50 euros, the price maintained until a fortnight ago, to 4 euros, the current price. «The costs of electricity have risen in an impressive way – says the entrepreneur – and we had to adjust the prices, but reluctantly. It is obvious that it is a displeasure towards our customers: we left the prices low as long as it was possible, after which we were forced to raise them because it was a question of selling below cost. In addition, the price of paddy rice on the market is skyrocketing, and for this reason too it was necessary to increase it ».

The SP Stroppiana rice mill is one of the largest in the rice-growing area and one of the most advanced from a technological point of view. Every year, since 2000, the year of foundation, the plants are able to produce about 120,000 tons of white rice from paddy rice, the rice cut in the field and dried by farmers. The rice mill also produces for third parties, from classic varieties such as Carnaroli to imported varieties such as Basmati. It is also one of the first companies in Italy to subject rice to a closed cycle disinfestation treatment with carbon dioxide. All this involves a large use of energy, with costs that have however increased dramatically in the last year: “We go from 950,000 euros of expenditure for electricity in 2021 – continues Tagliabue – to a forecast of 2.8 million euros for this year to make the whole plant work, which must remain on: it is not possible to turn off a part of the machinery to save electricity. We are talking about a company that produces foodstuffs, therefore primary goods ». The property has seen a gradual increase in electricity costs: in January the average purchase price was 224.50 euros per megawatt hour, which went to 308.07 euros in March, and then again at 441.65 euros. July and € 543.15 in August. But the worst is yet to come, as the estimates for the winter are € 704.62 for the month of November, and € 880.06 for December. “State aid is needed for the whole sector – concludes Tagliabue -, otherwise it is hard to go on. Others have managed to keep prices as before, but without any profit margin ».

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