Of the nearly 124 lakh metric tonne (LMT) of rice delivered to the Food Corporation of India (FCI) by millers after the 2023-24 paddy season, only a paltry 7 LMT has been produced in the state so far. This staggering shortage, where more than 117 LMT remains in stock in FCI godowns across Punjab, has left millers and shellers facing storage problems and economic losses.
Last year, Punjab bought about 185 LMT of paddy, which was sent to more than 5,000 rice mills for processing. The millers were expected to finish milling by March 31, but FCI could not meet this deadline as they were not willing to deliver the full amount of rice in this timeline. Instead, small amounts were taken every month, and the process continued until September 30, just a day before the start of the new paddy harvest and procurement season.
Rice millers are now refusing to accept new paddy for milling, demanding that FCI first create space by removing last season’s rice from Punjab. Without this, they say there will be no place for this year’s crop to be processed throughout the year. The delay in moving rice not only affects the operation but also causes damage to the paddy stored in the mills due to the hot season and then the monsoon season, which leads to weight loss, discoloration, and other quality issues.
Rakesh Jain, a leading rice miller and office bearer of the Punjab Rice Millers association, said that they have already suffered huge losses due to long storage of government paddy in their husks. “Last year, we faced losses amounting to thousands of rands, and we cannot repeat this. When 92% of the rice was given to FCI in July and it is not moved, how can we hope that the system will work well in the coming months as demanded by FCI,” he asked.
Jain also warned that this situation could cause chaos in this procurement period. As the millers refuse to put in the paddy, there will be no place in the mandis (grain markets) for the farmers to bring their new crop. “If the government does not act quickly, farmers will face great difficulties as their crops will not be in need,” he added.
“This crisis highlights the serious failure of FCI, as it is struggling to manage the large stock in Punjab. The millers have made it clear that they will prioritize buying their paddy directly from the money and mill as per the government’s demand, but they will not be responsible for storing the paddy bought by the government unless the stock is from last year. we were removed,” he said.
With the new paddy season already underway, the urgency of the situation cannot be overstated. Unless the FCI steps up its efforts to remove rice from the country, both rice millers and farmers could face major disruptions in the coming months, said Tarsem Saini, president of the Punjab Rice Millers’ Association.
While FCI Director General B Srinivasan told The Indian Express that there is about 117 LMT of rice in Punjab at present, Punjab Food and Civil Supplies minister Lal Chand Kataruchak on Friday said the government is working to ensure that Paddy is lifted on time.
He said, “FCI will remove 15 LMT of rice from Punjab by the end of October and the work will be completed by sending 20 trains, three containers and small trucks. On December 31, about 40 LMT of rice will be removed from the slums and adequate storage space will be created. We are also building more godowns in Public Private Partnership (PPP) mode and the last 90 LMT storage facility will be built in March next year. We will not be short of storage space for grain.” He further added that the arhtiyas have started the purchase of Basmati from Friday itself and the state government is sympathetic to their demands and the issues raised by them.
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