Ahead of paddy procurement, storage squeeze forces Punjab to ease rice milling norms

Ahead of the paddy procurement season in Punjab, the government has relaxed the Custom Milling Policy to ease storage constraints. The Cabinet approved the changes on Saturday for the Kharif Marketing Season (KMS) 2026-27, allowing rice millers to receive fresh paddy if they have delivered at least 90% of rice from their previous allocations.

This is a departure from the earlier rule that required millers to complete 100% delivery against their previous-season allocations to access fresh paddy. With storage and evacuation already under pressure, millers are struggling to clear old stocks as they prepare for the upcoming bumper procurement season. As of September 1, only 91.19 lakh metric tonnes of paddy had been delivered to government agencies, compared to the expected 105.63 LMT based on the 67% out-turn.

The backlog has exposed the strain on Punjab's evacuation network, with 49,819 wagons awaiting movement of rice while only 32,062 MT was transported in a single day. The custom milling deadline has been extended to October 31, but millers argue the 90% criterion would allow them to receive fresh paddy without waiting until then, as the actual delivery against the previous allocation is expected to be completed by March 31.

The storage situation in Punjab remains strained, with stocks estimated at nearly 271 lakh tonnes against a capacity of around 180 LMT. The issue has been repeatedly raised by Chief Minister Bhagwant Mann, who has sought faster evacuation of stocks through railway rakes. Rice millers have also flagged the space crunch, citing delays in moving rice as hindering milling operations.

Despite challenges, the government has assured that it will procure every grain offered by farmers during KMS 2026-27.