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Procurement hits roadblock as millers refuse to lift, store paddy

By, Patiala
Oct 03, 2024 07:12 AM IST

The millers in Punjab have been protesting against the storage of approximately 80,000 metric tonnes of paddy at the mills, which is yet to be milled and accepted by the FCI due to space constraints.

The Punjab Rice Millers Association general house on Wednesday unanimously decided not to participate in this year’s paddy procurement process and allow government agencies to store grains in their mills till the time their issues are resolved.

Labourers in Bhagtanwala grain market of Amritsar amid strike by commission agents (arhtiyas), labourers and millers, on Wednesday. (Sameer Sehgal/HT)
Labourers in Bhagtanwala grain market of Amritsar amid strike by commission agents (arhtiyas), labourers and millers, on Wednesday. (Sameer Sehgal/HT)

The millers in Punjab have been protesting against the storage of approximately 80,000 metric tonnes of paddy at the mills, which is yet to be milled and accepted by the FCI due to space constraints, besides concern about out turn ratio (OTR) of hybrid varieties. They have requested that scientific studies be conducted to ascertain the actual OTR (ratio of paddy to rice conversion).

In a unanimous decision during a general house, millers declared that they would neither provide jute sacks used for grain storage nor would apply for paddy allotment. They also resolved not to enter into any agreements with the government until their demands were resolved.

Tarsem Saini, president of the Punjab Rice Millers Association, said, “We don’t have the space to store fresh paddy for milling, as our storage is already full. Despite repeated requests, no arrangements have been made. Given the losses we’re already facing, we are compelled to refrain from participating in this year’s procurement process.”

Paddy this season was sown over 32 lakh hectares and experts have predicted a bumper crop of 230 lakh tonnes with the state food and civil supplies fixing a target of 185 lakh tonnes for procurement. The state contributes up to 45% of paddy of the total country’s need for the PDS. Paddy procurement officially began in Punjab on October 1 and besides rice millers, arhtiyas and mandi labourers are also on strike seeking a resolution to their demands.

As per reports the Food Corporation of India (FCI), which is the nodal agency for the management of food grains in the country, is facing paucity of space.

As many as 175 lakh tonnes (wheat and rice) have piled up in the state due to the slow movement of train rakes to consumer states.

Under the current arrangement, the government agencies are supposed to procure paddy, which is then sent to the mills for processing. Once milled, the rice is handed over to the FCI for storage or distribution of the same through the Public Distribution System (PDS).

For every 100 quintals of paddy, millers are required to return 67 quintals of rice to the government agencies and in case the yield is less the millers are supposed to cover losses.

The millers have reported that delays in the FCIs have resulted in moisture loss and now the grain yield after shelling has fallen below the permissible limit of 14%.

Chief minister Bhagwant Mann on Tuesday wrote a letter to the Union consumer affairs minister seeking his intervention to accept the state rice millers’ demand for shifting wheat and rice out of Punjab for the creation of adequate space for storing fresh paddy.

In a letter to the Union minister, Mann said generally FCI receives milled rice by March 31 but during Kharif Marketing Season 2023-24 the central agency could not provide space for the milled rice and the delivery period had to be extended up to September 30.

Under these circumstances, millers of Punjab are reluctant to lift and store paddy, which will be coming to the mandis during KMS 2024-25, Mann said.

Mann asked the Union government to compensate millers in case the milling goes beyond March 31 on account of shortage of space with the FCI. Mann said almost all the demands of the millers are genuine so the Centre should consider these demands sympathetically and resolve these issues on priority.

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