EXPLAINER: Why are rice millers and dealers opposing CMR policy 2025-26

The Haryana Government has rolled out its new Custom-Milled Rice (CMR) policy for 2025-25, sparking sharp criticism from rice millers and dealers across the state. While the government claims the policy will strengthen rice procurement and ensure higher quality rice for the Central pool, the millers argue that it adds extra financial and operational burdens. Here is how the new CMR policy is different from the previous policies.

What is the CMR policy?

A miller is required to deliver 67 per cent rice with 1 per cent fortified rice kernels (FRK) against the total allotted paddy under the CMR policy. The milling charges for the rice millers have been fixed at Rs 10 per quintal for paddy for raw rice and Rs 20 per quintal for parboiled rice, which are given only after the completion of milling operation and satisfactory delivery of rice to the Food Corporation of India (FCI). All by-products such as broken rice, husk and bran are the property of the millers. The whole milling process covers all operations, including drying, de-husking, filling, stitching, inspection, weighment, sampling, transportation and delivery of rice to the FCI godowns. Each bag must carry a stitched slip with details of the mill, centre, district, rice category, weight, contact number and crop year. Transportation charges will be paid as per State-Level Committee (SLC) rates. The GST will be applicable on all recoverable amounts. They have to maintain mandatory fortification compliance as per FSSAI norms. Deductions for penalties, interest and quality cuts, if any, will be made from the millers’ bills after due notice.

What are the major changes in the new CMR policy?

The major change in the new CMR policy is the reduction of permissible broken rice in deliveries from 25 per cent to 10 per cent, which the millers say is unrealistic, since breakage is a natural outcome of milling. They argue that the government compensates only Rs 2.23–Rs 3.33 per quintal for handling broken rice, while actual costs are around Rs 25 per quintal.

What issues have rice millers raised regarding transporters under the new policy?

The rice millers and dealers have expressed concern over inadequate transportation facilities for shifting paddy from the grain markets to the FCI godowns. They allege that many transporters secure the tenders despite lacking sufficient vehicles to handle the workload, creating operational difficulties during the peak season. In some cases in the past, the transporters submit fake vehicle numbers to the administration, which prevents timely movement of paddy. The millers argue that these issues not only delay deliveries but also place an additional burden on both farmers of space crunch in the grain markets and for the millers of making it challenging to meet the deadlines set under the CMR policy.

What issue rice millers have raised regarding the allotment of godowns for CMR delivery?

The rice millers have raised concerns over the allotment of FCI godowns located far from their mills for the delivery of CMR. They say in the past two seasons, the distance created significant operational difficulties, including logistical challenges. Despite repeated requests to have godowns allotted near their mills, their demand has not been accepted. The millers are asking the government and the FCI to consider their request and provide nearby godowns to ease the delivery process and ensure timely compliance with the CMR requirements.

What is the expected arrival of paddy this year and the share of procurement agencies?

As per an estimate from the Agriculture and Farmers Welfare Department, paddy is expected to be sown over an area of around 13.97 lakh acres this year. It is estimated that around 84 lakh metric tonnes (MT) of paddy will arrive at mandis and purchase centres. Out of this, the procurement agencies are expected to purchase about 54 lakh MT of paddy. These agencies will contribute approximately 36 lakh MT of CMR to the central pool, which accounts for 67 per cent of the delivered rice.

What is the new schedule for CMR delivery?

As per the CMR policy 2024-25, each miller must deliver 15 per cent of rice by the end of November, another 25 per cent by December-end, further 25 per cent by January-end, another 25 per cent by February-end, and the remaining 10 per cent by March 15. However, later the deadline was extended to June 30. In the new policy, the government has already accepted their demand and fixed the deadline as June 30. Now, the millers have to deliver 15 per cent of rice by December-end, 2025, further 25 per cent by January 2026-end, further 20 per cent by the end of February, further 15 per cent by end of March, further 15 per cent by May end and remaining 10 per cent by June 30. The failure to deliver within this schedule could invite penalties on a day to day basis.

What is the MSP of paddy?

The Centre has fixed Rs 2,369 per quintal for common paddy, while Rs 2,389 per quintal for grade ‘A’.

What are the requirements for registration of rice millers?

All millers must register online via the e-Kharid portal and also on FoRTrace for tracking. Each miller has to pay Rs 3,000 non-refundable fee per mill and have to submit location details with latitude and longitude verified by officials, registration is valid for one year only.

What are the fortification requirements under the policy?

Mills must blend fortified rice kernels (FRK) automatically using approved blending equipment. Blending efficiency tests must be done batch-wise to ensure uniformity. They have to maintain separate records for FRK procurement, blending, and stock.