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

Aiming to streamline the procurement of paddy and Custom Milled Rice (CMR) in Punjab, Union Minister for Consumer Affairs, Food and Public Distribution, and New and Renewable Energy, Pralhad Joshi, has assured the successful procurement of the targeted 185 lakh metric tonnes (LMT) for the Kharif Marketing Season (KMS) 2024-25. Addressing the media, Joshi highlighted that the Union Government’s measures would prevent any grain wastage, adding that a grievance redressal portal for rice millers is being launched to swiftly address issues faced by stakeholders.

Punjab’s procurement drive began on October 1, 2024, with the establishment of 2,700 mandis, including temporary ones, to facilitate smooth procurement operations. While heavy September rains and increased moisture content caused a slight delay, the procurement process has been steadily advancing. By October 26, out of 54.5 LMT of paddy arriving at mandis, 50 LMT has already been procured, a number closely aligned with last year’s figures for the same period. The Minimum Support Price (MSP) for paddy has also been raised significantly from Rs. 1,310 per quintal in 2013-14 to Rs. 2,300 per quintal in 2024-25, providing greater financial security for farmers.

This year, approximately 3,800 rice millers have applied for registration, with 3,250 already allotted tasks by the Punjab government. More millers are expected to join in the coming week, adding to the efficient handling of procurement targets. Storage arrangements are also a key priority, with the government undertaking various initiatives to accommodate the new CMR stocks. Meetings with the Punjab state administration have resulted in plans for rapid wheat evacuation to shortage areas, leasing additional godown spaces from the Central and State Warehousing Corporations, and expediting the creation of 31 LMT of storage under the PEG scheme.

With an All-India movement plan of 34.75 LMT for October, Punjab has been allocated around 13.76 LMT, with 15 LMT of storage space currently available. This capacity is expected to increase by December when CMR deliveries typically commence, as the government prepares a strategic depot-wise plan for monthly wheat clearance from Punjab until March 2025. To ensure that procurement operations remain smooth and aligned with storage demands, a high-level committee led by the Food Corporation of India’s (FCI) Chairman and Managing Director monitors the storage plan on a weekly basis.

Another issue raised by millers concerns the Out Turn Ratio (OTR) standard set by the FCI, which measures the rice yield from paddy. Millers argue that hybrid varieties marketed as PR-126 yield 4-5% less than the expected 67% OTR. In response, the government has tasked IIT Kharagpur to conduct a detailed study to evaluate these OTR norms, with tests being conducted across major rice-producing states.

To support millers further, FCI has authorized regional offices to permit additional transportation charges if designated depots lack storage space for over 15 days.