Centre rules out state-specific relaxation in paddy procurement norms

By Sanjeeb Mukherjee

The government on Sunday virtually ruled out giving any specific relaxation in paddy procurement norms to any state, including Punjab, saying whatever easing will be done would apply to all uniformly.

Food Minister Prahlad Joshi did not say it explicitly but alluded to it while speaking with reporters.

Rice millers in Punjab have been up in arms for the last few weeks, declining to lift paddy from mandis (wholesale markets) and demanding the easing of procurement norms.

Their primary demand is that the out-turn ratio (OTR) from paddy to rice as set by the Food Corporation of India (FCI) at 67 per cent be reduced for Punjab as the new hybrid paddy varieties such as PR-126 give 4-5 per cent lower OTR (post-milling yield) than usual.

Lower OTR means that millers are incurring losses in milling FCI paddy into rice. They also want a per quintal reimbursement of the loss in milling of varieties such as PR-126.

The issue has snowballed into a major political controversy with farmers blocking roads in several districts, demanding quick lifting of paddy from mandis, which are overflowing with grains.

The opposition BJP on Sunday submitted a memorandum to Punjab Governor Gulab Chand Kataria. The party accused the ruling AAP government of “tardy” paddy lifting. Former chief minister Amarinder Singh too has taken up the cause of farmers.

The Centre on Sunday said the PR-126 variety had been in use in Punjab since 2016 and never before had any such issues been reported.

“OTR norms prescribed by the Government of India are uniform all over India and are agnostic of the seed variety. Procurement all over the country is primarily based on uniform specifications, commonly called Fair Average Quality (FAQ),” Joshi told reporters.

The Centre has also commissioned a study by IIT Kharagpur to review the present OTR and driage incidentals for paddy for which tests are being conducted in different rice-procuring states, including Punjab.

“Unless the result of that study comes, we cannot unilaterally lower the OTR norm for one state,” an official said. According to data, till October 26, 2024, around 5.45 million tonnes of paddy arrived in Punjab mandis, of which around 5 million tonnes (around 92 per cent) have been procured by the FCI, despite a late start to the season.

During the same period last year, around 6.58 million tonnes of paddy had arrived in Punjab mandis, of which around 6.15 million tonnes (around 93.4 per cent) were procured.

The government also dismissed reports of storage space shortage affecting paddy procurement in Punjab, terming them “misinformation” created with “vested interests”.

Joshi said the Centre plans to evacuate 1.3-1.4 million tonnes of wheat monthly from Punjab until March 2025. An online portal to address rice millers’ grievances will be launched soon.

The minister said the government was distributing rice via the public distribution system (PDS) and to states like Tamil Nadu on a demand basis.

This article has been republished from The Business Standard

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