Already Khariff season is in troubleshoot throughout the states, centre’s new demoralizing decision had made rice miller unhappy.

Central Government’s decision to reduce milling charges to about Rs.10 per quintal (around $1.6 per ton), down about 33% from around Rs.15per quintal (around $2.4 per ton) in this kharif season, has displeased the rice millers.

Apart from this, the Union government has also removed the transportation charges from milling charges. For the past 40 years, FCI used to pay the transportation charges if the distance is within 8 Km from grain market to FCI warehouse or government warehouse.

But new guidelines says that if the distance from the beginning point to warehouses is below 8 Km, the FCI will not pay the transportation charges instead it has decided to reimburse all transportation costs starting from zero kilometre, without fixing the rate per kilometre which is to be reimbursed to rice millers.

Tarsem Singh Saini, president of the Punjab rice miller association said that the centre’s decision has made the rice miller unhjappy as till now they have not fixed the rate per km at which which is to be reimbursed to rice millers as transportation cost.

Millers are complaining against the government’s new guidelines.While the tariff commission of the government adviced the government to increase the millling charges the government has decreased the milling charges from Rs15 per quintal to Rs 10 per Quintal.

Rice millers want government to ficx the transportation rates before reimbursement for the delivery of procured paddy to warehouses.

Likely lower output from this kharif (June – December) season and the government’s previous directive to cap levy rice procurement from millers at 25% for the 2014-15 procurement season (October – September) from the existing 30-75% are already likely to impact millers’ incomes this year. The new directive adds to millers’ woes, according to local sources.

However, the decision may reduce government bill on FCI subsidies. The new government has planned a restructuring program of FCI, has been facing liquidity crunch for sometime due to lesser allocation of funds against the estimated subsidy bill in the last three-four years. In August this year, the FCI has written to the government to clear its subsidy dues of around Rs.50,000 crore (around $8.2 billion) in a phased manner.