In a major relief to rice millers across the state, the Food Corporation of India (FCI) has extended the deadline for delivering custom-milled rice (CMR) to June 30, easing fear of penalties due to delays. Earlier the deadline under the CMR policy 2024-25 was March 15. Here is what you need to know on what led to this extension and the issues millers continue to face.
What is the Custom-Milled Rice (CMR) Policy?
Under the CMR policy, a miller is required to deliver 67 per cent rice with 1 per cent fortified rice kernels (FRK) against the total allotted paddy. As per the CMR policy 2024-25, each miller must deliver 15 per cent of rice by the end of November, another 25 per cent by December-end, further 25 per cent by January-end, another 25 per cent by February-end and the remaining 10 per cent by March 15. The failure to deliver within this schedule could invite penalties, so the extension has come as a major relief for the millers.
Why was there a delay in starting CMR deliveries?
Although deliveries were scheduled to begin in November, several issues caused delays. The delay in finalisation of godown assignments for receiving rice by the FCI, delay in finalisation of the agency for supply FRK to millers were among the key reasons behind the delay in starting the CMR deliveries. After the rice millers raised these issues, the FCI officially allowed the millers to start deliveries only from December 15, a full month after the scheduled start.
What was the issue with godown allotments?
FCI introduced e-WINGS portal to automate godown allocation for millers. However, rice millers alleged that they were assigned godowns far from their milling units, increasing transport costs and causing logistical challenges. The Rice Millers and Dealers Association of the state highlighted that the millers were grappling with distant godown assignments, affecting timely deliveries. The millers alleged that the mismanagement further contributed to the delays in fulfilling the CMR delivery assignment.
How did GST rates affect millers and was there any relief?
Yes, the GST posed a major hurdle. Initially, the FRK was taken at 18 per cent GST. The millers bought FRK at around Rs 5,000 per quintal + 18 per cent GST, but were only reimbursed 5 per cent GST by the government, creating a financial gap. The issue was raised repeatedly by the miller associations with CM Nayab Singh Saini, Union Minister Manohar Lal Khattar and others, after which the 55th GST Council meeting in December, chaired by Union Finance Minister Nirmala Sitharaman, reduced the GST on FRK from 18 per cent to 5 per cent, easing financial pressure on the millers.
How much paddy was allotted and how much rice needs to be delivered?
Rice millers have been allotted 53,98,661.32MT of paddy, against which they have to deliver 36,53,274.51MT of rice. So far, the rice millers across the state have delivered 30,53,683.43MT, which is around 83.5 per,cent.
What is the district-wise status of rice delivery?
Rice millers of Ambala have delivered 96.85 per cent rice, while Fatehabad millers 98.83 per cent, Hisar millers 62.59 per cent, Jind millers 86.26 per cent, Kaithal millers 72.58 per cent, Karnal millers 70.26 per cent, Kurukshetra millers 79.95 per cent, Palwal millers 73.53 per cent, Panchkula millers 88.26 per cent, Panipat millers 19.04 per cent, Rohtak millers 72.10 per cent, Sirsa millers 96.54 per cent, Sonepat millers 25.12 per cent, and Yamunanagar millers 88.98 per cent.
What challenges are millers facing now despite the extension?
Even after the extension of the deadline, the millers continue to face shortage of space in the godowns assigned by the FCI for the delivery of rice. The millers are demanding that the FCI allocate nearby godowns to save on time and transport costs
