Why FCI extended CMR delivery deadline, and what is means for Haryana’s rice millers
In a major relief to rice millers across the state, the Food Corporation of India (FCI) has extended the deadline for delivering custom-milled rice (CMR) to June 30, easing fears of penalties due to delays.
Earlier, the deadline under the CMR policy 2024-25 was March 15.
Here is what you need to know about what led to this extension and the issues millers continue to face.
What is the Custom-Milled Rice (CMR) Policy?
Under the CMR policy, a miller is required to deliver 67 per cent rice with 1 per cent Fortified Rice Kernels (FRK) against the total allotted paddy. As per the CMR policy 2024-25, each miller must deliver 15 per cent of rice by the end of November, another 25 per cent by December-end, further 25 per cent by January-end, another 25 per cent by February-end, and the remaining 10 per cent by March 15. Failure to deliver within this schedule could invite penalties, so the extension has come as a major relief for millers.
Why was there a delay in starting CMR deliveries?
Although deliveries were scheduled to begin from November, several issues caused delays. Delays in finalization of godown assignments for receiving rice by the FCI and in finalisation of the agency for supplying FRK to millers were among the key reasons behind the delay in starting the CMR deliveries. After the rice millers raised these issues, the FCI officially allowed millers to start deliveries only from December 15, a full month after the scheduled start.
What was the issue with godown allotments?
FCI introduced the e-WINGS portal to automate godown allocation for millers. However, rice millers alleged that they were assigned godowns far from their milling units, increasing transport costs and causing logistical challenges. The Rice Millers and Dealers Association of the state highlighted that millers are grappling with distant godown assignments, affecting timely deliveries. The millers alleged that this mismanagement further contributed to delays in fulfilling CMR delivery assignments.
How did GST rates affect millers and was there any relief?
Yes, GST posed a major hurdle. Initially, the FRK was taxed at 18 per cent GST. Millers bought FRK at around Rs 5,000 per quintal + 18% GST, but were only reimbursed 5% GST by the government, creating a financial gap. The issue was raised repeatedly by miller associations with CM Nayab Singh Saini, Union Minister Manohar Lal Khattar, and others, after which the 55th GST Council meeting in December, chaired by Union Finance Minister Nirmala Sitharaman, reduced the GST on FRK from 18% to 5%, easing financial pressure on millers.
How much paddy was allotted and how much rice needs to be delivered?
Rice millers have been allotted 5398661.32MT of paddy, against which they have to deliver 3653274.51MT of rice. So far, the rice millers across the state have delivered 3053683.43MT, which is around 83.5 percent.
What is the district-wise status of rice delivery?
Rice millers of Ambala have delivered 96.85 per cent of rice, while 98.83 percent by millers of Fatehabad, 62.59 per cent from Hisar, 86.26 per cent by millers of Jind, 72.58 per cent from Kaithal, 70.26 per cent from Karnal, 79.95 from Kurukshetra, 73.53 per cent from Palwal, 88.26 percent from Panchkula, 19.04 per cent from Panipat, 72.10 percent from Rohtak, 96.54 per cent of Sirsa, 25.12 per cent by Sonepat, and 88.98 per cent by the millers of Yamunanagar.
What challenges are millers facing now despite the extension?
Even after the extension of the deadline, the millers continue to face a shortage of space in the godowns assigned by the FCI for the delivery of rice. Millers are demanding that the FCI allocate nearby godowns to save on time and transport costs.
Haryana Tribune