With the Centre refusing to give Telangana additional time to hand over rice due to be supplied to the Food Corporation of India (FCI) from the 2021-22 kharif season, the State Government has decided to levy a penalty of 25 per cent on millers who failed to meet their obligations before the deadline expired.

After the deadline ended on March 31, about 2.2 lakh tonnes of paddy was left unmilled in about 500 mills. “They have to pay 25 per cent penalty on the value of the rice that is not delivered to the FCI. They have to pay an additional 12 per cent penalty to be eligible to supply paddy in the 2022-23 marketing season,” a senior Government official said.

“Despite several requests from the State Government, the Centre refused to give any further extension of time beyond March 31,” he said.

To be used in PDS

The State government will take the leftover stocks and use them for the public distribution system needs. It, however, put a clause. It asked the millers to pay at least a fifth of the penalty to get eligibility to hand over the stocks. “Subsequently they should clear the remaining penalty in four equal instalments along with interest and complete the delivery of rice from the leftover paddy stocks,” the official said.

The government asked the millers to expedite the process as fresh paddy stocks from the 2022-23 rabi season are expected to arrive.

More trouble

Each year, the State Government allots quotas for purchasing paddy to different mills based on the Central procurement requirements. The millers process the paddy and supply rice to the FCI on behalf of the State Government. 

The millers are in for bigger trouble as the deadline for delivery of the rabi 2021-22 season ends on May 31. “About two-three lakh tonnes of paddy from the rabi 2021-22 season is still lying with several mills,” a miller from Karimnagar told businessline.

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