Centre Seeks States' Views on 10% Broken Rice Limit for FCI Supply
Govt Seeks States' Views on 10% Broken Rice Limit for FCI

Central Government Seeks State Feedback on Stricter Rice Quality Standards for FCI

The central government has initiated consultations with several states, including Telangana, regarding a significant change in rice procurement standards for the Food Corporation of India. The proposal under consideration involves supplying custom milled rice with a maximum broken rice content of just 10%, a substantial reduction from the current allowance of up to 25%.

Current Procurement Standards and Proposed Changes

At present, states across India have been supplying custom milled rice to the Food Corporation of India with broken rice percentages reaching as high as 25%. Government sources indicate that while achieving the proposed 10% broken rice standard is technically feasible, it would necessitate compensation for rice millers who would incur additional costs to meet the stricter quality requirements.

"When rice with almost zero percent broken content is readily available in open markets, albeit at premium prices, supplying custom milled rice with a maximum of 10% broken rice should not present insurmountable challenges," explained a government official familiar with the discussions. "The Food Corporation of India aims to auction surplus rice in open markets after fulfilling its public distribution system obligations through fair price shops. Market demand for rice containing 25% broken content has been declining steadily."

Telangana's Procurement Performance and Response

The Telangana state government is expected to engage in detailed discussions with rice millers to ensure that custom milled rice supplied to the Food Corporation of India contains less than 10% broken content. This comes against the backdrop of Telangana's impressive procurement performance during the current season.

Officials have confirmed that the state government has procured over 71 lakh metric tonnes of kharif paddy to date, representing the highest procurement quantity ever recorded in Telangana's history. Of this substantial procurement, the central government has placed an indent for 54 lakh metric tonnes to be supplied to the Food Corporation of India.

The total Minimum Support Price value of the procured paddy in Telangana amounts to an impressive 16,912 crore rupees. The procurement breakdown reveals that over 32 lakh metric tonnes consist of coarse variety paddy, while another 39 lakh metric tonnes comprise fine grade paddy. All procured paddy has already been transferred to mills for processing.

Shift in Cultivation Patterns and Payment Statistics

"This season witnessed farmers cultivating fine variety paddy across more acres compared to coarse variety," noted a senior official from the civil supplies department. "This shift can be attributed to the government's incentive of providing a 500 rupee bonus per quintal for fine variety paddy, encouraging farmers to prioritize higher-quality cultivation."

Payment statistics reveal that of the total Minimum Support Price value exceeding 16,912 crore rupees for procured paddy, the government has disbursed 16,602 crore rupees to farmers, achieving an impressive 98% payment rate. Additionally, bonus payments totaling 1,425 crore rupees have been successfully provided to eligible farmers.

The proposed reduction in broken rice percentage represents a significant quality enhancement initiative for India's public distribution system. While implementation would require careful coordination between central and state governments along with appropriate compensation mechanisms for rice millers, the move aligns with evolving market preferences for higher-quality rice products.