Chandigarh, July 8 -- Despite the Centre reducing the reserve price of 100% broken rice from Rs.2,320 to Rs.2,000 per quintal, Punjab's rice millers have expressed concern over the state's exclusion from the Open Market Sale Scheme (OMSS) e-auction. Last week the Union ministry of consumer affairs, food and public distribution issued directions to begin the Open Market Sale Scheme, but excluded surplus states which particularly include Punjab, Haryana and Uttar Pradesh. "Sale of rice to state governments under OMSS is restricted only to non-surplus states which require additional rice to meet their requirement for their own notified schemes," the July 2 order said. Punjab has huge foodgrain stocks, including rice (180 lakh tonne) and wheat (135 lakh tonne) of the previous season, which have completely choked state warehouses. To make matters worse, 51 lakh tonnes of paddy of last year's kharif season is waiting to be shelled, which will add another pile of 34 lakh tonnes to the existing stocks. Though the state government requested the evacuation of excess grain, movement remains restricted. "We have sought clarification from the Centre as Punjab has been excluded from the scheme and the scheme has no benefit for the state," said principal secretary Rahul Tewari. "If it is a clerical error, it can be rectified; otherwise, the decision is detrimental to the state's interest," he added. Currently, rice millers are holding one lakh tonnes of 100% broken rice, which is deteriorating in quality. This stock is expected to surge by an additional 18 lakh tonne during the upcoming kharif season. This influx follows a new central directive requiring rice-producing states to segregate 15% of their total broken rice stocks for sale under the OMSS. "Where would we sell those stocks when we have been excluded from the policy? We fail to understand the idea behind this decision," asked Bal Kishan Binta, president, Rice Millers Association, Punjab. Rice millers suspect the decision may have been influenced by the ethanol industry, which is currently seeking to procure broken rice at the revised reserve price. Ethanol producers in the northern states were heavily dependent on maize, however, its rising cost (Rs 2,200 per quintal) subsequently drove down the price of broken rice. "Excluding Punjab and Haryana from the e-auction under OMSS denies millers and traders access to the market while benefiting a limited class of buyers, who are ethanol producers," said Ranjit Singh Jossan, vice-president, Rice Millers Association. "However, it is to be seen when ethanol producers are issued release orders to purchase the broken stocks from the two states," he added. He questioned how huge stocks of broken rice lying in mills will be liquidated if the e-auction route remains unavailable, issuing a warning that delays in disposal of the broken stocks will aggravate storage constraints, increase financial liabilities and intensify working capital pressures ahead of the upcoming paddy procurement season. Jossan urged the Centre to restore Punjab and Haryana to the OMSS e-auction system to ease surplus stocks in the state. Following the policy revision on July 2, Punjab is not allowed to participate in the OMSS e-auctions....