Rice millers in Fatehabad are threatening to stop paddy procurement. The reason is a delay in lifting custom-milled rice (CMR) that they have already prepared for government agencies for the 2025-26 kharif season.
The millers say that ready rice is sitting at their mills because government agencies are not accepting deliveries on time. This delay is also holding up the release of their bank guarantees and fixed deposit receipts (FDRs), which is putting them under serious financial pressure.
What Fatehabad rice millers are demanding from government agencies
The millers have submitted a memorandum to the Deputy Commissioner. In it, they have made two clear demands. First, they want the government procurement agencies to immediately lift the CMR that is already prepared and lying at their mills. Second, they want the bank guarantees and FDRs to be released immediately after the deliveries are completed.
According to The Tribune, the delay over CMR has sparked a boycott threat by the Fatehabad rice millers. The millers have warned that they may stop procuring paddy if their demands are not addressed.
Financial pressure behind the procurement halt threat
The core issue is money. When millers process paddy into rice for government agencies, their bank guarantees and FDRs are tied up until the delivery is complete. If agencies do not lift the rice on time, the millers cannot get their money back. This creates a cash flow problem that makes it hard for them to continue buying new paddy from farmers.
The millers argue that this is not just their problem. If they stop procuring paddy, it could affect the entire supply chain in the region. Farmers who rely on selling their paddy to these millers could face delays or difficulties in selling their crop.
"The millers have submitted a memorandum to the Deputy Commissioner and warned that they may stop procuring paddy if their demands are not addressed." — The Tribune
What happens next for Fatehabad paddy procurement
The ball is now in the court of the government agencies and the administration. The Deputy Commissioner has received the memorandum, and the millers are waiting for a response. If the agencies start lifting the CMR quickly and release the bank guarantees and FDRs, the crisis could be resolved. If not, the millers have made it clear that they will stop procuring paddy.
This is a situation that needs quick action. The longer the delay, the more financial strain on the millers, and the higher the risk of a procurement halt that could hurt farmers in the region.
Our Take: A delay that hurts the entire paddy supply chain
To put it plainly, this is a bureaucratic delay that is causing real damage on the ground. The millers have done their part — they have processed the rice and are ready to deliver. The government agencies are not holding up their end of the deal, and that is costing the millers money.
In our view, the demand for immediate release of bank guarantees and FDRs is reasonable. When a miller completes a delivery, there is no reason to hold their financial documents any longer. The delay only creates distrust and makes it harder for millers to plan their business.
The warning to stop paddy procurement is serious. If it happens, farmers will feel the impact first. The administration should treat this as an urgent matter and ensure that the agencies lift the CMR without further delay. A quick resolution is in everyone's interest — the millers, the farmers, and the government's own procurement targets.