Centre Ensures Smooth Paddy Procurement in Punjab with Support for Rice Millers

Key Highlights

• Target of 185 LMT paddy for Kharif Marketing Season 2024-25
• New grievance portal for rice miller’s concerns
• Increased MSP for paddy to Rs. 2,300 per quintal
• Additional storage and rapid wheat evacuation plans
• FCI authorizes extra transport charges for delayed storage

The Union Government is actively working to ensure the smooth procurement of paddy in Punjab for the 2024-25 Kharif Marketing Season, aiming to meet a target of 185 lakh metric tonnes (LMT). New measures have been introduced to support rice millers with better storage, transportation, and a system to address their concerns.

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Key Government Support for Paddy Procurement

The Union Minister for Consumer Affairs, Food and Public Distribution, Pralhad Joshi, has confirmed that the government is committed to the successful procurement of the targeted paddy quantity this season. He announced that a new grievance redressal portal would soon be available to help rice millers resolve their issues promptly. This initiative is part of broader efforts to reduce grain wastage and streamline the entire procurement process.

Procurement Drive Began October 1, 2024

Punjab’s paddy procurement drive started on October 1, 2024, with 2,700 mandis, including temporary centers, set up across the state. Although heavy rains in September caused delays, the procurement process has progressed steadily. As of October 26, around 50 LMT of paddy has been procured out of 54.5 LMT brought to the mandis, keeping pace with last year’s numbers.

Additionally, the government has increased the Minimum Support Price (MSP) for paddy to Rs. 2,300 per quintal, offering better financial security for farmers compared to Rs. 1,310 per quintal in 2013-14.

Rice Millers’ Role and Support

So far, about 3,800 rice millers have applied for registration, with 3,250 already assigned tasks by the Punjab government. Many more are expected to join soon, further supporting efficient procurement. To manage the new stock of Custom Milled Rice (CMR), the government has taken steps to improve storage availability and expedite the transfer of wheat from Punjab to areas with limited stock. Additional storage will be leased from the Central and State Warehousing Corporations, and plans are underway to create 31 LMT of storage through the Private Entrepreneur Guarantee (PEG) scheme.

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Storage and Movement Plan

The government has outlined a national movement plan of 34.75 LMT of stock for October, with Punjab allotted about 13.76 LMT. Around 15 LMT of storage space is currently available, expected to grow by December as CMR deliveries commence. To stay aligned with storage needs, a high-level committee led by the Food Corporation of India’s (FCI) Chairman and Managing Director is closely monitoring the storage plans.

Response to Rice Millers’ Concerns on Yield Standards

Rice millers have voiced concerns about the Out Turn Ratio (OTR) standard set by the FCI, which measures the yield of rice from paddy. Millers say hybrid rice varieties yield about 4-5% less than the expected 67% OTR. To address this, the government has requested IIT Kharagpur to conduct a detailed study on these standards, with testing ongoing across major rice-producing states.

Additional Support for Transportation

To help millers further, FCI has authorized regional offices to allow extra transportation costs if storage space at designated depots remains unavailable for more than 15 days. This flexibility ensures that millers do not face excessive delays in transporting rice stocks.

These initiatives by the Centre are expected to support both farmers and rice millers, ensuring an efficient and secure procurement season for all stakeholders involved.

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CMV360 Says

The Centre's new measures aim to make paddy procurement in Punjab smooth and efficient. By improving storage, addressing rice miller’s concerns, and also ensuring fair pricing, the government is supporting farmers and millers alike, fostering a stable Kharif season with minimal wastage and streamlined operations.