CHANDIGARH: Standoff between the Rice Millers of Punjab and the Union Government has turned rife ahead of the implementation of the Centre’s decision to procure Improved Rice containing 10 per cent broken rice from Punjab for the Central Pool during Kharif Marketing Season 2026-27.
The milliling industry stated that it is fully prepared to cooperate in implementing the new system, but will not accept the additional costs arising from increased milling, processing, electricity, labour, quality testing and storage.
At a high-level meeting held at the regional office of the Food Corporation of India in Chandigarh, a delegation of the Punjab Rice Industry Association highlighted these issues before senior officials, including the Joint Secretary of the Department of Consumer Affairs, Food and Public Distribution, the Executive Director of the Northern Zone from the FCI Headquarters and the General Manager of the Punjab Region.
The meeting was chaired online by Secretary, Department of Food and Public Distribution, Sanjeev Chopra.
Leading the delegation, association president Bharat Bhushan Binta and Vice-President Ranjit Singh Jossan said that under the new system, mills would have to undertake additional sorting, grading and processing to produce rice that meets the improved quality specifications.
This would increase the use of machinery and thereby the expenditure on electricity and labour, raising the overall production cost.
Under such circumstances, carrying out the additional work at the existing milling charges would not be commercially viable.
Regarding the quantity of Improved Rice, the association demanded that its target should not exceed 25 per cent of the total rice supplied to the Central Pool.
"If Punjab supplies approximately 125 lakh metric tonnes of rice to the Central Pool, the quantity of Improved Rice should be capped at a maximum of 30 lakh metric tonnes," the association said.
Binta, comparing the present permissible limit of 25 per cent broken rice in ordinary rice and proposed Improved Rice with only 10 per cent broken rice, pointed out that additional processing is needed.
Despite this constraint, the existing milling charge of Rs 2.23 per quintal is far below the actual cost involved.
The association therefore demanded that the milling charge be increased to at least Rs 50 per quintal.
Vice-President Ranjit Singh Jossan said that if the government requires millers to produce rice of a higher quality, the additional actual cost associated with the process must also be reimbursed.
He said that assigning additional work and responsibility to the industry without compensating it for the resulting expenditure would directly affect the financial viability of rice millers.
The association described the storage of 100 per cent broken rice as one of the major practical challenges arising from the new policy.
Jossan said that during the previous season, 100 per cent broken rice generated from Improved Rice had to be stored by millers within their mill premises for eight to ten months.
"This not only resulted in additional storage expenditure but also created a shortage of space in mills for milling the new paddy crop."
Describing the existing storage charge of Rs 1.23 per quintal per month as inadequate, the Association demanded a minimum storage charge of Rs 8 per quintal per month.
The industry leaders pointed out that the Central Government provides Rs 10.78 per quintal for government warehouses and Rs 3.96 per quintal for open storage to state governments.
Against this backdrop, they said, a minimum storage charge of Rs 8 per quintal for storing government rice at millers’ own premises stands justified.
General Secretary of the association Jolly Garg raised the issue over timely lifting of 100 per cent broken rice and said that the industry had continuously faced difficulties in disposing of such stocks for the past two years.
"Prolonged storage of the material at mills reduces available storage capacity and adversely affects milling operations during the following season," he said.
The association therefore demanded that 100 per cent broken rice be disposed of within 30 days.
It also called for a transparent system for issuing lifting orders and demanded that lifting be carried out on a “first come, first served” basis.
Complaints were also raised at the meeting regarding alleged harassment of millers by buyers participating in government auctions in the name of quality and deductions of up to Rs 100 per quintal.
The association demanded the introduction of a uniform, scientific and transparent quality-testing mechanism to address the issue.
According to the industry leaders, since the Improved Rice policy was issued late, the new bags were initially released to millers as per the previously applicable rice milling ratio.
Subsequently, the higher cost of additional bags was deducted from the mill owners, against which the association had raised objections.
For the upcoming season, the association demanded that the total Improved Rice target and the individual allocation of each miller be clearly communicated before implementation of the policy.
It also demanded that final written instructions regarding FRK blending, 25 per cent broken rice, Central Pool rice specifications and the procurement procedure be issued before the commencement of Kharif Marketing Season 2026-27.
Written clarification was also sought regarding the cost of plastic bags required for the disposal of 100 per cent broken rice and the submission of tax invoices.
They said that the FCI or the Central Government should clearly specify the agency with which tax invoices are to be submitted so that unnecessary delays in settling millers’ bills can be avoided.
On the transportation policy, association member Kamal Garg demanded full reimbursement of actual freight for delivery of rice beyond 40 kilometres, along with complete exemption from back-movement charges.
The association also stated that until an official amendment is made to the policy, payment of freight to millers for distances up to 40 kilometres should be ensured under the existing arrangement.