10% broken rice cap for PDS to trigger storage crisis: Millers
Chandigarh, July 4 -- The Centre's decision to supply rice with broken content restricted to 10% for the public distribution system (PDS) under the Pradhan Mantri Gramin Kalyan Ann Yojana (PMGKAY) will result in storage crisis and financial losses, Punjab millers have said.
According to the July 1 decision of the Union cabinet, out of 25% broken content in shelled rice, 15% will be kept by the rice millers to be sold under the open market sale scheme (OMSS) and the rice with 10% broken quantity will be handed over to the Food Corporation of India for supply to consumer states. Three years ago, the Centre had asked the rice millers to start trials for separating broken rice, which has now been adopted as a policy. Every 100-kg sample of paddy when shelled gives two-third (67 kg) rice, out of which 25% (nearly 17.5 kg) is broken rice which, earlier, was part of the PDS supplies. "This will lead to storage crisis and financial losses," said rice miller Ranjit Singh Jossan, vice president of the Punjab Rice Millers Association.
Punjab already has rice stocks totalling 135 lakh tonnes awaiting liquidation. Every year, separating the 15% broken rice will result in 18 lakh tonnes in private stocks to be disposed of when the Centre opens OMSS.
In a message on X, Union minister of consumer affairs, food and public distribution Pralhad Joshi termed the decision as historic and transformative to strengthen India's food security architecture. "For the first time in nearly three decades, the quality standards for rice distributed under the PMGKAY have been upgraded, ensuring better-quality food with dignity for over 80 crore beneficiaries," he said.
The revised specifications will apply to the rice distributed under the PMGKAY and the NFSA, through which over 80 crore people receive 5 kg of free foodgrain every month, while families covered under the Antyodaya Anna Yojana (AAY) receive 35 kg of free grain per month.
According to Jossan, the policy's success will depend on how the government addresses the growing stock of broken rice generated during the production of improved-quality rice. "The revised standards require rice mills to undertake significantly more sorting than before. Earlier, broken rice within the prescribed limits formed part of the final rice supplied to the government. Under the new norms, much of that grain will now have to be separated, increasing the volume of broken stock," he added.
Rice millers argue that the prevailing market prices are significantly higher, discouraging purchase of broken rice by ethanol producers and the animal feed industry. The association has urged the Centre to revise the reserve price from Rs.2,320 per quintal to around Rs.1,800. A market-linked price will accelerate sale and free up storage space before the next procurement season, they say. Rahul Tewari, principal secretary, Punjab food and civil supplies, said, "We have flagged the issues arising from the decision to separate the broken rice. In case those issues are resolved, the stock disposal won't be a problem."...
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