'No space crunch in Punjab': Centre dismisses concerns over paddy storage

The Centre on Sunday dismissed reports of storage space shortage affecting paddy procurement in Punjab, terming them "misinformation" created with "vested interests".

Union Food Minister Prahlad Joshi on Sunday assured that creating adequate storage space remains the government's responsibility.

"Some rumours are being spread. I want to clearly state that creating space is our responsibility. We will take care of that," Joshi said during a media briefing, accompanied by Food Secretary Sanjeev Chopra and FCI Chairman Vanita Rattan Sharma.

The state currently has 14 lakh tonne storage capacity, which will increase to 16 lakh tonne by November 1. An additional 31 lakh tonne capacity is being developed under the Private Entrepreneur Guarantee (PEG) scheme.

The minister highlighted that 3,800 millers have applied for paddy lifting, with 3,250 already allocated stock for rice conversion. The government has cleared payments worth Rs 9,819.88 crore, of which Rs 7,641 crore has reached farmers.

The ministry has formed a high-level committee under the FCI chairmanship to monitor storage capacity and movement plans weekly. Out of the national movement target of 34.75 lakh tonne for October, Punjab has been allocated 40 per cent (13.76 lakh tonne).

The Centre plans to evacuate 13-14 lakh tonne of wheat monthly from Punjab until March 2025. An online portal to address rice millers' grievances will be launched soon.

The minister said the government is distributing rice via PDS and to states like Tamil Nadu on demand basis.

Addressing concerns over lower out-turn ratio (OTR) from paddy to rice, particularly with the PR-126 variety, Joshi said IIT-Kharagpur has been commissioned to conduct a detailed study.

"PR-126 variety has been in use since 2016 without issues. The national OTR standard remains at 67 per cent regardless of variety," he added.

The minister said there are reports of widespread use of hybrid varieties being passed off as PR-126 in Punjab. These hybrid varieties reportedly have significantly lower OTR compared to genuine PR-126 paddy, affecting millers' ability to meet mandated norms.

Joshi also ruled out any relaxation in OTR norms for Punjab's rice millers.

The Centre has engaged IIT-Kharagpur to review current OTR norms and drainage incidentals for paddy. The study is currently in progress.

On the issue of additional transportation charges faced by millers, the Food Corporation of India (FCI) has delegated powers to regional offices. They can now approve extra transportation charges if designated depots have no vacant space beyond a 15-day waiting period.

"The necessary customisation for enabling the same has been made in the procurement portal and the issue has been resolved," the minister said.

The procurement began early on October 1 following heavy rains, with 49.88 lakh tonne paddy procured so far. Saturday alone saw procurement of 5.34 lakh tonne.