Union Minister of Consumer Affairs, Food and Public Distribution, and New and Renewable Energy, Pralhad Joshi, held a press conference yesterday to discuss the Union Government’s initiatives for seamless procurement of paddy and Custom Milled Rice (CMR) in Punjab. The Minister emphasized that the target of 185 LMT for the Kharif Marketing Season (KMS) 2024-25 will be fully met, ensuring that no grain of paddy is left unprocured. He also announced the upcoming launch of an online portal for rice millers to address grievances promptly.
Procurement of paddy in Punjab officially began on October 1, 2024, with 2,700 designated mandis, including temporary yards, to facilitate smooth operations. Although heavy rainfall in September and increased moisture content in paddy caused some delays, the state is now on track to reach its target of 185 LMT by November 2024. As of October 26, 2024, out of 54.5 LMT of paddy arrivals in mandis, 50 LMT has been procured. For comparison, during KMS 2023-24, 61.5 LMT was procured from 65.8 LMT of arrivals by the same date. The Minimum Support Price (MSP) for common paddy has risen significantly, from Rs 1,310 per quintal in 2013-14 to Rs 2,300 per quintal in 2024-25. Currently, 3,800 millers have applied for registration, with 3,250 already allotted work by the Punjab government; more registrations are expected in the coming week.
To ensure adequate storage for CMR, several high-level meetings have been held with the Punjab State Government, focusing on priority actions such as the swift evacuation of wheat stocks to deficit states, hiring CWC/SWC godowns, and expediting the creation of 31 LMT storage capacity under the PEG scheme. Of the national movement plan of 34.75 LMT for October, approximately 40%, or 13.76 LMT, is designated for Punjab. Currently, around 15 LMT of storage space is available in the state. CMR deliveries typically commence in December, by which time sufficient space will be prepared for millers. A detailed monthly plan aims to evacuate 13-14 LMT of wheat from Punjab until March 2025. A high-level committee, chaired by the Chairman and Managing Director of the Food Corporation of India (FCI), is monitoring the movement and storage capacity on a weekly basis to facilitate rice stock storage for KMS 2024-25.
Millers have requested a reduction in the existing Out Turn Ratio (OTR) of 67% set by the FCI, citing that the PR-126 paddy variety yields 4-5% less than usual. Although the PR-126 variety has been used in Punjab since 2016 without previous issues, concerns have emerged due to the rise of hybrid varieties marketed as PR-126, which reportedly have lower OTRs. The OTR standards set by the Government of India are uniform across the country and do not depend on the seed variety, with procurement based on Fair Average Quality (FAQ) specifications. Additionally, a study has been commissioned to IIT Kharagpur to review the current OTR and driage incidentals of paddy, with tests being conducted in various rice-procuring states, including Punjab.
Regarding transportation costs incurred by rice millers, the FCI has empowered regional offices to approve additional charges if vacant storage space is unavailable beyond a 15-day waiting period. Customizations have been made to the procurement portal to accommodate this, resolving the issue to the millers’ satisfaction.
