Punjab allows use of miller premises for staggered paddy procurement amid Covid-19

The decision was taken by the chief minister on the basis of a proposal of the food and civil supplies department, after examining the concerns raised by the Punjab Rice Industry Association

To ensure smooth and seamless procurement of paddy during the Kharif season amid Covid-19, chief minister Captain Amarinder Singh on Tuesday announced a slew of amendments to the custom milling policy (CMP) 2020-21, including allowing use of miller premises as mandi yards.

With the go-ahead to restoration of the bank guarantee clause included in the custom milling policy (CMP) 2020-21 to the previous year’s provisions, the required bank deposit percentage will come down to 5% from the existing 10%. (HT file photo)

The chief minister approved deletion of clause 12 (j) of the CMP for this purpose. The clause deals with those millers who are also commission agents/arhtiyas and, under existing rules, were not allowed to be allotted to the agency for which they were operating as commission agents, according to an official spokesperson.

The decision was taken by the chief minister on the basis of a proposal of the food and civil supplies department, after examining the concerns raised by the Punjab Rice Industry Association.

The CM has also given the nod for other amendments in the CMP provisions, including restoration of the bank guarantee clause and sale of existing mills. With the go-ahead to restoration of the bank guarantee clause included in CMP 2020-21 to the previous year’s provisions, the required bank deposit percentage will come down to 5% from the existing 10%.

Under the amended rules, the miller shall now have to submit a bank guarantee to the agency concerned before the actual storage of paddy in his/her premises, equal to the value of 5% of acquisition cost of free paddy above 5,000 MT. The bank guarantee shall be released on delivery of due rice to Food Corporation of India.