EXPLAINER: Are Haryana millers at risk of black marketing pressure

Rice millers and dealers of the state have expressed concern over the limited number of authorised supplies for fortified rice kernels (FRK), mixing of which is mandatory in the delivery of the custom-milled rice (CMR) by the rice millers. As many as four suppliers have been authorised to cater to the needs of nearly 1,400 rice millers involved in CMR across the state. Here is what you need to know about the issue and challenges being faced by the millers.

What is FRK and why is it important?

FRK are rice grains enriched with a high volume of micronutrients such as iron, folic acid and vitamin B12, which is prepared from rice flour. For the prevention of anaemia in the country and the state, the Union Government had decided to distribute fortified rice in the CMR in the proportion of 1 per cent. Under the CMR policy, the rice millers deliver 67 per cent of rice from allotted paddy to the Food Corporation of India (FCI).

 What questions have millers raised on the current FRK supply system?

The rice millers and dealers are angry because the state government has assigned only four FRK suppliers to provide nearly 30,000 metric tonnes to nearly 1,400 millers of the state who are involved in CMR. Many millers have received only a small quantity, which is inadequate for proper CMR delivery. The millers argue that due to the shortage of FRK, they are not able to start the delivery of CMR. This shortage leads to delays in rice delivery, inflated rates of FRK and a growing risk of black marketing, making it difficult for them to comply with the government mandates regarding the delivery of CMR. They suspect financial losses, as some millers have already purchased high-moisture paddy that can get spoilt if the milling is delayed. The Haryana Rice Millers and Dealers Association says some millers are under stress to deliver CMR as they are not getting FRK.

Why are the millers concerned about being blackmailed?

As per the millers, fear of being blackmailed prevails among them. They say limited choice gives disproportionate power to the suppliers over millers, who are under pressure to deliver CMR on time. They say pressure to deliver CMR timely forces them to purchase FRK, creating a situation where some millers can be exploited. They argue the sampling of the FRK of these suppliers is not complete.

How many suppliers have been assigned in Punjab for FRK supply?

The millers have pointed out that in Punjab, 109 suppliers have been authorised to supply FRK. With a larger number of suppliers, Punjab experiences smoother distribution with prices of FRK ranging between Rs 40kg-Rs 49kg, which reduces the risk of delays or black marketing. In contrast, the millers in Haryana are receiving FRK at around Rs 57 per kg, which is higher than Punjab.

What actions have the millers already taken to address the problem?

On February 10, the Haryana Rice Millers and Dealers Association met Anshaj Singh, Director-General of the Food, Civil Supplies and Consumer Affairs Department, who assured them that 20 per cent of the FRK supply would be available by February 28, but the millers argued that so far there was insufficient supply. They also assembled in Karnal on February 19 to highlight the issue. On Friday too, the millers also met the Karnal District Food Supply Controller, demanding proper supply of FRK. Besides, they demanded immediate government intervention, including retendering of FRK supply, and an increase in the number of suppliers.

How much rice do the millers have to supply by the end of February?

Under the new schedule of the CMR, the millers must deliver 15 per cent CMR by December-end, 25 per cent by January-end, 20 per cent by February-end, 15 per cent by March-end, 15 per cent by May-end and the remaining 10 per cent by June-end. As per the millers, without adequate FRK, these targets were impossible to meet.