Punjab: Godowns filled to brim, fresh paddy crop to spell trouble for millers, govt
Ruchika M Khanna
Tribune News Service
Chandigarh, August 11
A bumper paddy crop in the upcoming season should have usually sent waves of excitement in an agrarian state like Punjab, but not this time. The reason: The state faces a severe space crunch for storing the next paddy crop.
Plea to allow duty-free export
Bal Krishan Bali, president of the Punjab Basmati Rice Millers and Exporter Association, said since the granaries were overflowing and there was no space for this season’s crop, the government should allow duty-free export of non-basmati rice. “This will benefit farmers. The outstanding stock can be released in the open market at a controlled rate of Rs 2,800 per quintal to ensure fair pricing and prevent market inflation,” he said.
Rice millers in the state have threatened that they won’t accept paddy from the government for milling when the season starts in October. The paddy that they received in the 2023 kharif marketing season has been milled and around 6 lakh tonne produce is still lying at their units. Ideally, this should have been lifted by March 31. Though the season was extended to June 30, almost 40 days later, there is little sign of the rice being shifted from their premises to the government godowns, which are filled to the brim.
“We have to incur losses as regards the quantity of produce to be delivered. Rice loses moisture, or could face insect/pest infestation. In 2023-24, the rice millers suffered huge losses due to delay in milling of paddy. The stored paddy lost moisture and we had to buy rice from the open market to supply the exact quantity to the government,” said a rice miller from Ferozepur. It may be mentioned that for every 100 quintals of paddy given to millers, they have to ensure that 67 quintals of rice is delivered to the government agencies.
“A variety of paddy (PR 126) and some hybrid seeds being promoted by the state government have lower rice overturn ratio from paddy (around 62 per cent). Those who got these varieties for milling also have had to buy rice from the open market to give the specified quantity to the government,” said another Jalandhar-based miller.
He added since these varieties were being again promoted on a large scale for this kharif season (2024-25), they were apprehensive of losses this time too.
“Senior officials from the Food and Supply Department, led by Secretary Vikas Garg, held meetings with millers from Ludhiana and Jalandhar yesterday. We apprised him of our concerns, telling him that we won’t be able to mill the paddy this year. He has assured to resolve these issues, especially of space crunch,” he added.
Garg said the state government was in touch with the Centre to resolve the issue of lack of space for storing the bumper paddy crop expected in October. “They will be moving rice stocks out of Punjab soon,” he said.
Sources say with the rice consuming states themselves growing and becoming self-sufficient in paddy, there were few takers for Punjab’s paddy.
“We are trying to move rice from the godowns of Punjab to other recipient states. This will start in the next one-two months, especially as the Centre has decided to sell rice under the Open Market Sales Scheme. From the next month onwards, we hope to create space for storing 20-30 metric tonne (MT) grains,” Regional General Manager of the Food Corporation of India told The Tribune.
However, 185 LMT paddy expected in October will yield 122 LMT rice. Where that huge quantity will be stored is what is now being debated in the highest echelons of the state government.
