Paddy custom milling gains momentum as Chhattisgarh govt changes policy

The Chhattisgarh government has accelerated custom milling to convert into rice the paddy procured at the minimum support price (MSP).  

The government has procured record 10.73 million tonnes (mt) of paddy in the kharif marketing season 2022-23, marginally lower than the target of 11 mt it had set. The volume of paddy procured in the 2021-22 season stood at 9.8 mt. The state has paid Rs 22,670 crore to 2.4 million registered farmers against the paddy purchased.  

According to food department officials, the state-run marketing federation has lifted paddy of 9.6 mt from 2,617 centres set up across the state. The government has issued a delivery order for the lifting of more than 10.1 mt of paddy.  

The custom milling gained pace after Chief Minister Bhupesh Baghel ordered changing the policy of lifting paddy, which could save about Rs 150-200 crore of the state exchequer, Food Secretary T K Verma said. 

“Like last year, arrangements were made for rice millers to directly lift the paddy from the procurement centers for custom milling,” Verma said.  

Earlier, paddy purchased at the centres was shipped to warehouses from where the millers would lift paddy, making transporting expensive. While only 300,000 tonnes of paddy were transported to warehouses in the current season, the figure was 2.3 mt last time. 

The government’s incentive of Rs 120 per quintal as an incentive to millers was also a reason behind the rising pace of custom milling, Verma said. This year, 249 new rice mills were set up in the state, taking the number of registered millers to 2,284.  

He said paddy had given impetus to Chhattisgarh's economy and industrialisation, creating new employment opportunities.