High Level Meeting: Ahead of Paddy Harvesting, FCI Seeks 100% ‘Improved Rice’ from Punjab

Ahead of paddy harvesting in the state beginning from October 1, the Centre government has asked Punjab to supply 100% ‘Improved Rice’ under Custom Milled Rice (CMR) during KMS 2026-27. The rice millers in the state said that are ready but have sought additional processing compensation, a 15-day deadline for lifting the resultant broken rice, and an advance guarantee of storage space for the rice to be delivered to government agencies.

A high-level meeting was held on Monday at the Regional Office of the Food Corporation of India (FCI), Chandigarh, regarding the procurement of 100% improved rice from Punjab and various issues concerning the State’s rice shellers and millers.

The meeting was attended in person by senior FCI and Punjab government officials at the FCI Regional Office, while Sanjeev Chopra, Secretary, Department of Food and public distribution, Government of India, participated through video conferencing from Delhi.

Among those present were Ravindra Aggarwal, Chairman cum Managing Director, FCI; Rahul Tiwari, Principal Secretary Punjab; and other senior officials. The Rice Millers Association, Punjab, was represented by a delegation led by its President, Gian Chand Bhardwaj, along with Ashwani Kumar, General Secretary Jai Pal Goel, Chairman and other senior office-bearers of the Association.

“This year, the target for procuring paddy in Punjab is expected to be 180 lakh tonnes, out of which around 120 lakh tonnes of rice will be prepared after milling, based on the 67% Out-Turn Ratio (OTR) specification set by FCI.

Of the 120 lakh tonnes, nearly 20 lakh tonnes will fall under the broken rice category, while the remaining around 100 lakh tonnes will be Improved Rice, which will be distributed through PDS,” said Bhardwaj. While FCI and Central officials maintained that Punjab would have to move to 100% Improved Quality Rice in the coming KMS, Bhardwaj said the millers were willing to implement the programme but warned that the additional cost could not be passed on entirely to the industry.

The Punjab Rice Millers' Association has sought at least ₹50 per quintal of paddy as additional processing compensation, over and above the existing custom milling charges. The Chairman said the new process would require machinery modification or upgradation, besides increasing expenditure on electricity and labour, while potentially reducing rice recovery.

The millers have also demanded that the resultant broken rice be lifted from mill premises within 15 days. They said prolonged retention of broken rice would consume valuable storage space and could expose them to additional storage costs, quality deterioration and financial losses.

The association wants the government or its agencies to bear any losses arising from delayed lifting.The millers said that under the existing CMR process, around 1,155 bags of paddy are required to produce one consignment of about 580 new bags of rice, each weighing 50 kg.

This means that the millers' storage liability is effectively around 50%. Under the proposed Improved Quality Rice process, however, they claim that around 1,395 bags of paddy would be required to produce the same quantity of 580 new bags of rice.