Rice millers issue ultimatum ahead of paddy procurement in Odisha

Bhubaneswar, Nov 14: A fresh challenge has emerged for the Odisha government ahead of the commencement of the kharif paddy procurement season, with rice millers threatening to withhold cooperation unless their long-pending demands are addressed within the next 10 days.

The All Odisha Rice Millers Association has issued an ultimatum to the government, warning that it may stop participating in paddy lifting and milling operations from December 1 if key issues remain unresolved.

The association has submitted a 12-point charter of demands, including clearance of Custom Milled Rice (CMR) stocks, payment of pending milling incentives, and revision of transportation charges.

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One of the major concerns raised by millers is the acute shortage of storage space.

According to the association, nearly 63 lakh tonnes of rice were produced during the previous kharif season, of which only around 36 lakh tonnes have been lifted. As a result, nearly 30 lakh tonnes of rice reportedly remain stocked in mills across the state.

The association questioned how new paddy stocks would be accommodated when a substantial quantity of old rice remains uncleared.

It has also demanded immediate settlement of outstanding dues, enhanced driage allowances for raw rice mills, and reimbursement of actual costs incurred on storage, custody, insurance and bank guarantee commissions.

Apart from financial concerns, millers have flagged operational issues affecting the procurement process. They alleged that FAQ-grade paddy is not being supplied uniformly in standard 37.5-kg bags and expressed dissatisfaction over losses caused by poor-quality gunny bags.

The association has also sought compensation for natural moisture loss in paddy and resolution of issues related to VLTD devices.

Furthermore, it has demanded a revision of the existing two per cent deviation limit during stock verification.

The state government has reportedly assured the association that the concerns are being examined seriously and that efforts are underway to find an early solution.

The standoff comes at a crucial time when Odisha is preparing for a large-scale paddy procurement exercise, with a target of producing around 53 lakh metric tonnes of rice. Farmers are set to receive Rs 3,100 per quintal for paddy, making smooth procurement critical.