CIBIL score mandatory for milling govt paddy in Punjab

Rice millers, desirous of milling government paddy in Punjab, should have a CIBIL score not less than 600 and should also submit credit report, according to a new custom milling paddy policy.

The decision is aimed to check allotment of government paddy to non-eligible rice millers.

Punjab cabinet led by Chief Minister Amarinder Singh today gave nod to the new policy, with the aim of ensuring seamless procurement of paddy from farmers and delivery of rice into the Central Pool from more than 3,710 mills operating in the state.

"To strictly check allotment of government paddy to non-eligible parties for the first time ever, the millers would be mandatorily required to submit a certified credit report, along with complete Credit Information Bureau India Limited (CIBIL) report for all their financial transactions from their bankers for this purpose.

The miller desirous of doing milling of government paddy should have a CIBIL score not below 600 and CIBIL Micro, Medium and Small Enterprises Rank (CMR) should be 6 or lower," according to an official spokesperson.

In addition, the miller would have to submit a bank guarantee equal to the value of five per cent of acquisition cost of total paddy to be stored in mill premises, he said.

The scheme for Custom Milling of Kharif 2018-19 paddy would be followed by all the procuring agencies -- PUNGRAIN, MARKFED, PUNSUP, Punjab State Warehousing Corporation (PSWC), Punjab Agro Foodgrains Corporation (PAFC), including Food Corporation of India and the rice millers with the Department of Food, Civil Supplies and Consumer Affairs Punjab acting as the nodal department.

A spokesperson said the sole criterion for allotment of free paddy to mills during Kharif marketing season 2018-19 would be the miller's performance in the previous year and an additional percentage-wise incentive would be provided to mills as per their date of delivery of rice against milling of custom milled paddy.

Mills which had completed their milling by January31, 2018 would be eligible for additional 15 per cent of free paddy, the spokesperson said, adding that those who had completed delivery of rice by February 28, 2018 would get an additional 10 per cent of free paddy.

For the first time, mills with dryers and sortexes already installed in the premises would be eligible for five per cent additional allocation of paddy on account of each separately, the spokesperson added.

The newly established rice mills shall be allocated 2,500 MTs of paddy for one tonne capacity with subsequent allocation of additional 500 MTs of paddy for every additional tonne of capacity, subject to maximum allocation of 4,000 MTs.

The state was expected to procure 190 Lakh metric tonne of paddy and the target was to complete the Custom Milling of Paddy, thereby delivering all due rice to Food Corporation of India, by March 31, 2019.

Under the milling schedule prescribed, millers would have to deliver 35 per cent of their total rice due by December 31, 2018 and 60 per cent of total rice due by January 1, 2019; 80 per cent of total rice due by February 29, 2019 and total rice due by 31st March, 2019.

For time-bound redressal of any dispute, a first-time provision of an Arbitral panel of three arbitrators has been made in the policy.