Punjab Government Approves a New Scheme for Rice Mills and Paddy

Punjab Cabinet led by Captain Amarinder Singh on Monday approved the Punjab Custom Milling Policy for Paddy (Kharif 2019-20) ahead of the upcoming paddy harvest season with more security provisions, including criminal penalty for diversion of rice.             

As reported, the scheme aimed at ensuring seamless milling of paddy and smooth delivery of rice to the Central Pool from more than 4000 mills NSE -4.13 % operating in the state. The Department of Food, Civil Supplies, and Consumer Affairs Punjab will act as the Nodal Department, says official.

The government body reported that the sole criterion for allotment of free paddy to mills during KMS 2019-20 would be the miller's performance in the previous year i.e. KMS 2018-19. An additional percentage-wise incentive would be provided to mills as per their date of delivery of rice against milling of Custom milled paddy, including RO paddy in the previous year.

Mills which had completed their milling by 31st January 2019 would be eligible for an additional 15% of free paddy while who had completed delivery of rice by 28th February would get an additional 10%.

In order to ensure the security of paddy stocks, millers this year would be required to furnish bank guarantee equal to the value of 5% of the acquisition cost of allocable free paddy above 3000 MTs. The move would further enlarge the ambit of guarantee clause to over 1250 more rice mills, taking the total number of such mills to around 1900. In addition, millers will also have to deposit Custom Milling Security at the rate of Rs. 125 for each MT of paddy stored.

“The state is expected to procure 170 Lakh MTs of paddy with total area under paddy sowing being 29 Lakh hectares this year coming down from 31.03 Lakh hectares the previous season”, says official. The target was to complete the Custom Milling of Paddy, thereby delivering all due rice to Food Corporation of India, by March 31, 2020.