State cracks whip on defaulting rice millers as delivery deadline nears

With the June 30 deadline fast approaching for the delivery of custom-milled rice (CMR), several rice millers have fallen significantly short of targets set under the 2024-25 procurement season. Despite repeated extensions and reminders, many have delivered less than half of their allotted quota to the Food Corporation of India (FCI).

Custom-milled rice default

– According to data from the Food, Civil Supplies and Consumer Affairs Department, only 72% of the expected rice has been delivered so far

– Out of 56,28,869 quintals of paddy allotted to 144 rice mills, the department expected 38,09,056 quintals of rice in return

– However, only 27,50,708 quintals have been delivered, leaving a shortfall of 10,58,348 quintals

According to data from the Food, Civil Supplies and Consumer Affairs Department, only 72% of the expected rice has been delivered so far. Out of 56,28,869 quintals of paddy allotted to 144 rice mills, the department expected 38,09,056 quintals of rice in return. However, only 27,50,708 quintals have been delivered, leaving a shortfall of 10,58,348 quintals.

Twelve rice mills have delivered less than 40% of their quota, prompting the department to initiate strict action. In particular, four rice mills based in Nissing — Krish Cereals Pvt. Ltd., Krish Rice Mill, RN Foods and SK Foods — are now facing property attachment proceedings.

“These mills have been served final warnings. If they fail to meet the delivery deadline of June 30, penalties will be imposed as per the CMR policy,” said Anil Kumar, District Food and Supplies Controller (DFSC).

A communication has already been sent to the District Revenue Officer (DRO) to begin the pledging process of the properties owned by the erring rice mills and their guarantors. Once this process is complete, formal property attachment will follow.

Collectively, the four defaulting mills were allocated 2,02,402.125 quintals of paddy and were expected to supply 1,36,965.518 quintals of rice. So far, they have delivered only 1,737.116 quintals, with a staggering 1,35,228.4 quintals still pending.

The break-up of performance is — Krish Cereals Pvt. Ltd.: Allotted 59,933.625 quintals of paddy; required to deliver 40,557.084 quintals; delivered only 289.437 quintals.

Krish Rice Mill: Given 17,524.875 quintals of paddy; delivery target was 11,859.083 quintals; delivered 289.536 quintals.

RN Foods: Allotted 59,904 quintals; no rice delivered to date.

SK Foods: Required to deliver 42,854.17 quintals; has delivered 1,158.144 quintals so far.

Under the CMR Policy 2024-25, millers are required to deliver 67% rice with 1% Fortified Rice Kernels (FRK) from the total paddy allotted. The delivery schedule mandated staggered submission: 15% by November-end, 25% each in December and January, another 25% by February-end and the remaining 10% by March 15. Despite the FCI extending the final deadline to June 30, several mills have continued to miss targets.

“We are closely monitoring the situation and have already initiated the property pledging process. Defaulting mills will face consequences if deliveries are not completed within the extended timeline,” the DFSC said.

Haryana Tribune