Punjab's rice milling industry is facing an unprecedented storage crunch as the Centre extends CMR delivery deadlines, causing previous season's stocks to clash with an expected bumper harvest.
- Centre extends Custom Milled Rice (CMR) delivery deadline to November 30, 2026.
- Approximately 80% of Punjab's 5,200 rice mills still hold stocks from the previous season.
- Expected paddy production for this year is projected to exceed 19 million tonnes.
- Lack of storage space in FCI godowns is hindering the movement of old stocks.
The agricultural landscape of Punjab is currently grappling with a logistical nightmare. The Central Government has extended the deadline for the delivery of Custom Milled Rice (CMR) for the 2025-26 crop to November 30, 2026. While this may seem like a mere administrative extension, it has triggered a systemic crisis for millers who are now seeing the previous season's stocks bleed into the current harvesting cycle.
Traditionally, the milling cycle in Punjab followed a predictable rhythm: 70-80% of milling was completed by March, with the remainder finalized by June. However, in recent seasons, this timeline has stretched into September. With paddy harvesting slated to begin in late September or early October, millers are terrified that they will have no physical space to store the incoming fresh crop, especially with a bumper harvest on the horizon.
Why This Matters
BozokMedia analysis shows that this is not merely a storage issue but a failure of the supply chain equilibrium. When the Food Corporation of India (FCI) cannot clear old stocks due to decreased demand from other states, the bottleneck shifts backward to the private millers. This creates a dangerous cycle where mills operate 24/7 without maintenance breaks, increasing operational costs and risking machinery failure.
"The space crunch can be eased only if the Centre facilitates exports and some rice is moved out of Punjab to create a vacuum for the new crop."
The crisis is further exacerbated by the limited capacity of government godowns. According to Gyan Bhardwaj, President of the Rice Millers’ Association, Punjab, nearly 10 lakh metric tonnes of rice from the previous season remain undelivered. Even in border districts like Hoshiarpur and Pathankot, where rice is shipped to Jammu and Kashmir and Himachal Pradesh, movement has slowed significantly due to low demand from those regions.
Adding to the tension is the government's crackdown on 'rice recycling.' The Ministry of Consumer Affairs has directed strict monitoring to prevent the mixing of old and new grains. However, millers argue that prolonged storage leads to moisture loss and weight reduction in paddy, forcing them to procure rice from other states to avoid heavy penalties from the FCI—a practice the government labels as recycling.
| Metric | Traditional Cycle | Current Situation |
|---|---|---|
| Milling Completion | By June-end | Extending to September/November |
| Maintenance Window | 5-6 Month Break | Continuous Operation |
| Expected Production | Standard Targets | 19 Million+ Tonnes (Bumper) |
Frequently Asked Questions
Q1: Why is the CMR delivery deadline being extended?
The deadline was extended because demand for rice from other states has declined, leading to slower movement of grain from Punjab's FCI godowns.
Q2: What is 'rice recycling' in the context of Punjab mills?
It refers to the allegation that millers mix different batches of rice or procure from other states to compensate for weight loss caused by prolonged storage.
