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Punjab Rice Mills Face Storage Crunch as CMR Deadline Extended
Punjab grows and mills a lot of rice.
Some rice and paddy from the previous harvest are still stored at mills and government warehouses.
The government has given mills until November 30, 2026, to deliver some of the old rice.
But a new paddy harvest is expected to begin around September or October.
Millers worry there will not be enough room for the new crop.
They want the government to help export rice and move it out of Punjab.
Officials are asking for closer checks to prevent old rice from being mixed or recycled improperly.
The Food Corporation of India says demand from other states has fallen, slowing the movement of Punjab’s rice.
The Centre extended the deadline for delivering 2025-26 Custom Milled Rice to November 30, 2026.
Punjab’s rice mills still hold previous-season paddy, while about 10 lakh metric tonnes of rice remains undelivered.
Millers fear filled government warehouses will leave too little space for Punjab’s incoming fresh paddy crop.
The Centre ordered field monitoring, mill-wise delivery schedules and age testing to check possible rice recycling.
Millers are seeking exports and faster movement of rice, while FCI attributes the slowdown partly to weaker demand from other states.
- Who
- Punjab’s rice mills, the Centre, the Punjab government, the Food Corporation of India and rice millers’ representatives.
- What
- The Custom Milled Rice delivery deadline was extended amid delayed milling, undelivered old rice and a shortage of storage space.
- Where
- Punjab, including areas where rice is moved by road to Jammu and Kashmir and Himachal Pradesh.
- When
- The extension was announced Thursday; the new delivery deadline is November 30, 2026, while fresh paddy harvesting is expected to begin in late September or early October.
- Why
- Milling has been delayed, demand from other states has weakened, and government storage capacity is heavily occupied before the next paddy crop arrives.
Government and FCI Position
Millers’ Position
Reason for the delay
Government and FCI Position
The Food Corporation of India says increased local procurement in other states has reduced demand for rice from Punjab, slowing grain movement and worsening the storage crunch.
Millers’ Position
Millers say the central problem is inadequate storage space and the continued presence of old stocks when fresh paddy arrives.
Rice recycling allegations
Government and FCI Position
The Centre directed Punjab and the Food Corporation of India to monitor deliveries and check for possible rice recycling, including through field-level tracking and age tests.
Millers’ Position
Punjab millers say recycling allegations should not be treated as established facts and argue that prolonged storage reduces paddy weight, sometimes forcing them to obtain rice from other states to avoid penalties.
Proposed solution
Government and FCI Position
The Centre has emphasized scheduled, mill-wise delivery and monitoring of remaining Custom Milled Rice.
Millers’ Position
The Rice Millers’ Association wants the Centre to facilitate exports and move some rice out of Punjab to create storage space and reduce continuous operating costs.
Key facts
- New CMR deadline
- November 30, 2026
- Punjab rice mills
- Around 5,200
- Mills with previous-season paddy
- Millers estimate nearly 80 per cent
- Undelivered previous-season rice
- Around 10 lakh metric tonnes
- Punjab production target
- 18 million tonnes
- Expected Punjab production
- More than 19 million tonnes
- Traditional milling schedule
- About 70–80 per cent completed by March and the remainder by June-end
Quotes
A Punjab rice miller
A rice miller quoted in the report discussing storage-related losses
“Prolonged storage causes the moisture content of paddy to fall, reducing its weight.”
indianexpress.com
“Earlier, at least, we used to get a 5–6 month rest period for maintenance work.”
indianexpress.com
Sources
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