CHANDIGARH: The Central Government has issued directions to states for registration of criminal cases and recovery of double the cost of shortages found in paddy and rice stocks stored on rice millers’ premises regarding the physical verification of paddy lying unmilled.
The Union Ministry of Food and Public Distribution on September 23, wrote to Additional Chief Secretaries and Principal Secretaries (Food) of 23 states and Union Territories; Punjab, Haryana, Himachal Pradesh, Jammu and Kashmir, Chandigarh, Uttar Pradesh, Uttarakhand, Rajasthan, Delhi, Tamil Nadu, Andhra Pradesh, Puducherry, Karnataka, Kerala, Telengana, Odisha, Assam, Tripura, West Bengal, Madhya Pradesh, Maharashtra, Bihar, Chhattisgarh, Jharkhand and Gujarat who’s copy is with this newspaper.
"I am directed to refer to this department’s SOP for PV of unmilled paddy issued by vide letters of even no dated July 30, 2025 and October 6, 2025 and to enclose herewith a copy of the revised SOP for PV of unmilled paddy for compliance with immediate effect in supersession of earlier SOPs. Along with the SOP the suggestive framework indicating the actions to be taken on finding recorded in JPV report is as flows," the letter reads.
The standard operating procedure (SOP), issued by the ministry in it’s letter mandates recovery of the value of shortages during JPV may be made from the defaulter miller at double the rate of acquisition cost of CMR along with with 12 per cent interest and debarment from government milling for two years in cases of shortages found during physical verification, besides registration of First Information Report (FIR) against the defaulter miller.
The letter further states that the provisions regarding the actions to be taken against shortages found during JPV may be incorporated in the agreement with the millers.
The state governments may adopt or continue with statutory mechanisms in the respective state within the overall frame work of action on findings during JPV.
The ministry has asked the Food Corporation of India (FCI) and state agencies to jointly conduct physical verification of stocks.
The Centre’s directions have drawn a strong reaction from rice millers, who have sought clear, scientific and uniform standards for physical verification and shortfall in milling yield before paddy procurement begins on October 1 and the new milling season starts.
Talking with this newspaper, Punjab Rice Millers Association President Bharat Bhushan Binta demanded that before the procurement of paddy begins on October 1 and the new milling season starts, clear, scientific and uniform standards should be prescribed for physical verification and shortfall in milling yield for rice millers.
He said that the Centre’s letter provides for recovery, 12 per cent annual interest, FIR and debarment from government milling for up to two years in case of shortages found during physical verification, but given the present situation in Punjab, the technical aspects must be scientifically examined before taking such action.
Binta said that Punjab is currently facing a severe shortage of space and, if paddy has to be stored in mills for a long period, sometimes up to 12 months, prolonged storage can increase moisture, damage and discolouration in paddy.
Despite this, millers are required to deliver rice to the Food Corporation of India as per prescribed specifications, making it important to distinguish between technical milling yield variation and actual physical shortage.
He said that shortages arising due to hybrid paddy, different varieties, moisture, losses during drying, percentage of broken rice, milling recovery and other technical reasons should not automatically be treated as paddy shortage, theft or misappropriation.
He also demanded that during physical verification, broken rice, rejected rice and other by-products generated during the milling process lying in the mill should also be treated as part of the available stock and included in the overall stock assessment.
Ranjit Singh Jossan, vice-president of the rice millers association said, "A clear distinction must be made between actual physical shortage, quality variation and technical shortfall in milling yield. During Joint Physical Verification, the presence of the miller or his authorized representative, scientific measurement of stock, assessment of moisture, agency-wise reconciliation, recording of written objections and a mechanism for re-verification in disputed cases should be ensured."
"Before fixing final liability on any miller, registering an FIR or debarring him from government milling, he should be given proper notice, an opportunity to present his case and an opportunity for re-verification." he said.
"If actual diversion, misappropriation or misuse of government paddy by a miller is established, action should be taken as per law, but no miller should be treated as an offender merely on the basis of a technical shortfall in milling yield," he said.
"shortages arising from hybrid paddy, different varieties, moisture, drying losses, broken rice and milling recovery should not automatically be treated as paddy shortage, theft or misappropriation." he said.
Jossan said that not even a single bag of government paddy should go missing, but at the same time honest millers should not be held responsible because of measurement errors, prolonged storage, technical variations or unclear verification procedures. Every bag of paddy must be properly accounted for, but every account must also be verified in a fair, transparent and scientific manner.
The millers are also demanding that broken rice, rejected rice and other by-products generated during milling and lying at mills be included in the overall stock assessment.
Sources in the state food and civil supplies department said that such SOPs from the Union Government were common and the state government had also imposed similar norms. But however, added that the millers’ concerns would be dealt with sympathetically.
