The recent spell of heavy rains across the State has not only damaged standing crops in the initial plant growth stage but also damaged huge quantity of paddy produced and procured during the recent Rabi/Yasangi season with uncertainty still looming over the lifting of custom milled rice (CMR) by the Centre or Food Corporation of India (FCI).
According to officials of the State Civil Supplies Corporation (CSC), there were about 94 lakh tonnes of paddy stocks with millers stored in their mills or other storage spaces including in open areas outside the rice mills. The paddy pertains to both the Rabi season and the last Kharif/Vanakalam season.
After the Centre/FCI’s refusal to procure parboiled rice processed during the Rabi season, the State government has taken up procurement with two to three weeks of delay. About 50.67 lakh tonnes of paddy produced in the Rabi season was procured by paying about ₹9,900 crore to farmers and spending an equal amount on gunny sacks, stitching material, transportation and procurement of other necessary material.
The mills could not take up processing the paddy as CMR since June 7 considering that the FCI has stopped lifting the rice citing various reasons, including doubts over stocks in the mills. In the meantime, the CSC got the test milling done for Rabi paddy for processing it as raw rice as sought by the Centre.
Officials of the CSC stated that the paddy damaged in the rains was estimated to be around 5 lakh tonnes to 8 lakh tonnes mostly in the combined Nizamabad, Karimnagar and Medak districts and its cost would be in the range of ₹1,500 crore to ₹2,000 crore. At several places, the paddy stocked outside the mills has even sprouted making it useless for milling.
The rice millers association met here recently and raised serious concerns over the soaked paddy, stating that the loss caused would be a huge burden on them unless its cost is waived or borne by the State government or the Centre/FCI. The CSC officials said the paddy damaged in the rains would be useful only for brewing liquor (beer) or for processing as cattle/bird feed.
Last week, it was decided to take up the proposal for auctioning the damaged paddy in the first phase to the Chief Minister for taking a decision, after a high-level meeting of the Civil Supplies department, which was also attended by the representatives of the rice millers association.
“Hopes were raised when BJP leaders from the State, including MPs and a Union Minister, announced last week that the FCI/Centre had agreed to lift the CMR after their meeting with the Union Minister for Food and Public Distribution. However, there has been no progress in that direction since then although we have been making efforts constantly requesting the FCI authorities to lift the CMR”, a senior CSC official told The Hindu.