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

As paddy harvesting commences in Punjab from October 1, the Central government has mandated the state to deliver a full 100% of 'Improved Rice' under the Custom Milled Rice scheme for the KMS 2026-27. Rice millers in the region confirm their readiness but have requested additional compensation for processing, along with a 15-day deadline for retrieving the resulting broken rice and an advance guarantee for storage facilities for rice meant for government agencies.

A high-level meeting was convened on Monday at the Food Corporation of India's Regional Office in Chandigarh to discuss the procurement of 100% improved rice from Punjab and related matters concerning the state's rice shelling and milling operations. This meeting is particularly significant as the central government's demand represents a significant increase from the previous season, when only around 11-12 lakh tonnes of improved quality CMR were procured from Punjab under a pilot project.

Improved Quality Rice refers to rice processed to meet higher-quality standards, ensuring superior milling quality and desirable grain characteristics. These rice varieties are intended for distribution under the public distribution system (PDS). Broken rice, in contrast, consists of rice kernels that fracture into smaller pieces during milling, resulting in a product typically distributed through the Open Market Sale Scheme for utilization in ethanol production, distilleries, poultry and cattle-feed industries, and the open market.

Representing the Rice Millers Association of Punjab was a delegation led by its President, Gian Chand Bhardwaj, alongside Ashwani Kumar, General Secretary, Jai Pal Goel, and various senior officers. The association urged the government to cover any financial losses arising from delayed retrieval of broken rice, stating that prolonged storage of such rice could lead to quality degradation and financial losses. The millers have demanded a 15-day window for lifting broken rice from their premises to mitigate these risks.

Notably, under the existing CMR process, approximately 1,155 bags of paddy are required to produce one 580-kg bag of new rice, implying that the millers bear storage responsibility for about 50% of the paddy. However, the proposed Improved Quality Rice process demands around 1,395 bags of paddy to yield the same quantity of new rice, with only 580 bags destined for FCI.

The remaining 805 bags—equivalent to roughly 58.5% of the total—would have to be stored by the millers themselves, adding to their financial burden. The association has thus sought FCI's advance confirmation of storage capacities by March 31, 2027, and a comprehensive district-wise and agency-wise storage plan.