Chhattisgarh govt bans rice transportation from state

The Chhattisgarh government has banned transportation of rice from the state, fearing a shortage and subsequent price escalation.

The decision came following rice millers' reported reluctance over custom milling of paddy provided by the state government. Under the practice, the rice would be returned after the milling to the Food Corporation of India and the state government. A fee was set by the state for this; the government also bore the transportation cost of paddy supply to the mills.

According to food department officials, a little more than 2.5 million tonnes of paddy procured in the kharif marketing season 2012-13 was still in the godowns. The government had procured a record 7.3 mt from farmers this year. The officials blamed millers for the delay. Last year, the government had procured six mt and by end-June, 98 per cent of custom milling was done.

The government feared milling was being done of paddy purchased directly from farmers and then sold to other states. Hence the latest order. Without permission of the director of food, no rice is to go out of Chhattisgarh.

Millers, not willing to be identified, says the government is to blame for the situation. "A huge quantity of paddy that had not been lifted for custom milling had been damaged in the rains following negligence of the officials," one said, adding the government wanted to use such paddy although it would fail to produce good quality rice.