Paddy procurement in Punjab may face delays as FCI is slow to lift the milled rice

Faridkot 

Raghbir Singh Brar

Faridkot

Email:raghbirsinghbrar@gmail.com

August 12,20126

 With roughly 30 percent of milled rice from the previous season still waiting to be lifted by the Food Corporation of India (FCI), the upcoming paddy procurement season in Punjab—typically starting on October 1—faces potential delays and disruptions.

The Rice Millers Association has issued a statewide wake-up call, holding a key meeting in Kotkapura attended by millers from Faridkot, Jaitu, and Kotkapura. Association leaders, including National President Tarsem Saini and State President Gurdeep Singh Cheema, urged millers across the state to stand united and refuse to bow to pressure.

According to Harpal Singh Sandhu, District President of the Rice Millers Association, Faridkot, rice millers are running out of storage space and are forced to operate intermittently.

“We are facing a lot of problems because the FCI has not yet lifted all the milled rice from us. Some years back, all the milling was completed by March 31 and soon afterwards, the milled rice was lifted by the agency. But still, 30 percent of rice has to be lifted by the FCI,” said Sandhu. “We don’t have any space to store milled rice, so we keep the paddy stock lying with us instead of milling it all in one go. Last year, we had about 15 per cent space, but for the upcoming season, we have nothing left so far.”said Harpal Singh Sandhu.   

Millers pointed out that these delays carry significant financial losses. Beyond ongoing staff salaries and operational expenses, rice naturally loses moisture content as summer progresses—dropping from the accepted 14 percent down to 11–12 percent after March. Millers are then forced to financially compensate FCI for the resulting weight shortage. Several millers have already been forced to shut down, while others are on the verge of closure.

Sources within the industry note that the issue is increasingly tied to political friction between the Union Government and the AAP-led State Government of Punjab ahead of the February 2027 Assembly elections. Industry observers suggest that slow grain movement could create bottlenecking at the mandis, causing anger among farmers that may impact the state government politically.

Although Punjab’s Chief Minister recently met with the Union Agriculture Minister to address the impasse, millers express concern over administrative changes. One rice miller noted that the General Manager position at FCI, traditionally appointed from the Punjab cadre, is now being filled from the UT cadre, leading to reduced communication between the state government and the agency.

Punjab cultivates paddy across approximately 32.76 lakh hectares—representing about 78 percent of the state’s total agricultural area. Nearly 5,000 rice mills (shellers) process this paddy for the FCI to supply the Public Distribution System (PDS) across India. However, limited storage capacity at FCI facilities and sluggish grain transit out of the state have created recurring supply chain bottlenecks over recent seasons.