UP millers sitting over 300,000 tonne rice stock

Uttar Pradesh millers are sitting over 300,000 tonnes rice stock of last year, which the Food Corporation of India (FCI) and the state government had not taken the delivery of, for utilisation in the public distribution system (PDS).

“FCI and the state government were first to take the delivery by June 30, which was then extended to September 30. But so far, nothing has happened,” UP Rice Millers Association Secretary P C Kanodia told Business Standard.

He alleged non-cooperation both on part of FCI and the state food department, which had left the millers in the lurch.

The state government had to take the delivery of 127,000 tonnes of foodgrain and the rest by FCI. However, FCI was waiting for the state government to take the delivery of rice before following suit.

“We have already written to the state government in this regard but there has been no response,” he said. The millers want either the delivery of rice being taken or they be allowed to sell it in the open market.

Kanodia further said that the paddy purchase mechanism for the millers was neither regularised nor streamlined in the state and the attitude of the concerned departments remained callous.

“The state mandis should be streamlined on the lines of Punjab, where millers get superior quality of paddy at reasonable rates unlike Uttar Pradesh,” he added.

In the backdrop of shortfall in paddy production this year owing to drought, the millers are likely to procure paddy from states like Bihar.

There are about 2,000 and 8,000 rice mills in the organised and unorganised sectors in the state, respectively. The rice milling season normally extends from November to March.

In Uttar Pradesh, millers have to give 75 per cent of rice to the government as levy on predetermined rates for use in PDS.