HYDERABAD: In a surprising move, the State government has amended its policies regarding the allotment of paddy to rice mills involved in criminal cases and violations of the Essential Commodities Act (ECA). The decision, aimed at addressing the issue of excess paddy production and limited milling capacity, has raised concerns about potential unfair practices in the rice industry.
Previously, the government had strict regulations in place, preventing the allotment of paddy to mills that were embroiled in criminal cases related to the purchase, sale, recycling, and misappropriation of PDS rice. However, the recently issued GO, which amends the previous GO, now permits the allocation of paddy to mills involved in such cases after October 1, 2021.
This move by the State government comes despite objections from the Union government, which had criticised the State’s failure to take action against erring rice mills during the previous procurement season. The prolonged deadlock between the two governments resulted in custom-milled rice rotting away in mills.
The revised GO (GO. Ms. No. 23) dated October 18, 2022, initially outlined the prohibition on allotting paddy to rice millers facing cases under the Essential Commodities Act or criminal charges related to the purchase, sale, recycling, and fraudulent documentation of PDS rice. However, the fresh GO, issued on May 10, 2023, introduced a significant amendment. Under the new GO, the allotment of paddy is now restricted only to mills facing cases booked within one year from the date of allotment, regardless of whether the cases have been resolved or not.
This amendment effectively allows rice mills engaged in illegal practices to receive paddy allocations once again, causing concerns about the fairness and integrity of the industry. This decision comes as the State government anticipates a paddy procurement volume ranging from 60 to 80 lakh tonnes during the ongoing procurement drive.
A rice mill owner, speaking on the condition of anonymity, expressed doubts about the government’s projected procurement figures, suggesting that the actual quantity may be closer to 60 lakh tonnes. However, according to data released by the Civil Supplies department, as of Friday, the government has established 7,175 purchase centres and has procured 19.62 lakh tonnes of paddy, with 18.52 lakh tonnes already transferred to rice mills across the State.