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Aug
25

Haryana Rice Millers Draw Line Over Unsettled CMR Stocks

A fresh dispute over the handling of Custom-Milled Rice (CMR) is threatening to disrupt paddy procurement in Haryana, with rice millers deciding to stay away from the upcoming CMR operations scheduled to begin on October 1. The decision comes amid growing frustration over large quantities of processed rice remaining stored at mills because the Food Corporation of India (FCI) has reportedly stopped accepting further stocks.

Around 6.5 lakh MT of CMR, valued at nearly Rs 2,800 crore, from the previous procurement season is still awaiting acceptance by the FCI. The issue has continued despite discussions involving the state leadership, Union ministers and senior officials of the Food, Civil Supplies and Consumer Affairs Department. Millers have also held a protest outside the department’s directorate in Chandigarh.

The dispute has become particularly serious because the Union government had initially set a paddy procurement target of 55 lakh MT, while government agencies eventually procured around 62 lakh MT and allocated the grain to nearly 1,400 rice millers across Haryana. Although the deadline for delivering CMR to the FCI was extended until September 30, 2026, millers say they are unable to clear their stocks because acceptance has effectively been restricted.

For the millers, the problem goes beyond storage. Payments related to milling and transportation are also pending, creating additional financial pressure. They fear that the undelivered rice could eventually result in their being classified as government defaulters, preventing them from participating in the next procurement cycle. As a result, registration for the upcoming season has already been affected.

The millers are seeking a clear mechanism for handling the accumulated stocks, along with compensation for storage and holding expenses. They also want adequate protection against financial losses arising from discolouration and deterioration of rice while stocks remain in their custody. Delays in the release of milling dues have further aggravated their concerns.

Karnal millers have extended full support to the state-level association and have indicated that they will not register for the coming season until the matter is resolved. The district association has also stressed that millers have regularly supported government procurement operations, including by providing storage space and crates for wheat when required.

Another point of contention is the difference in treatment between states. Haryana millers say Punjab received permission for CMR delivery on July 3, allowing stocks there to be accepted, while Haryana millers who sought permission from June 30 continued to face difficulties. Although approval was reportedly received from the Union government at the end of July, acceptance of Haryana’s CMR remained restricted.

With the new procurement season approaching, the responsibility now rests with the state and Centre to resolve the impasse. Timely acceptance of rice, settlement of pending dues, compensation for storage costs and safeguards against stock deterioration will be crucial to prevent the dispute from affecting the procurement system.