Punjab faces a major challenge in paddy procurement due to a severe shortage of storage space. To address this, the Council of Ministers, led by Chief Minister Bhagwant Singh Mann, approved the Custom Milling Policy for the 2026-27 paddy season. This policy allows rice millers to receive fresh paddy even if they have not finished delivering rice from the previous crop.
New eligibility rule for rice millers in Punjab
Under the new policy, millers who have delivered up to 90 per cent of the rice from the paddy allotted to them in 2025-26 will be eligible to receive fresh paddy for milling. The concession is designed to ensure that milling operations are not disrupted when procurement of the new crop begins later this month.
This move comes as Punjab has been assigned a target to procure around 180 lakh metric tonnes (LMT) of paddy during the forthcoming season. The state is working to manage the logistics of this large-scale procurement while dealing with limited storage capacity.
Why Punjab introduced this milling policy change
The decision directly addresses the storage space crunch that threatens to slow down the procurement process. By allowing millers who have cleared most of their previous obligations to take on new paddy, the government aims to keep the milling pipeline moving.
This policy creates a practical balance — millers must show progress on old deliveries before getting new stock, but they are not required to finish 100 per cent of their previous quota. The 90 per cent threshold acts as a middle ground to keep operations running smoothly.
Our Take: A practical step for a pressing problem
To put it plainly, this policy shows that the Punjab government understands the ground reality of paddy procurement. Requiring full delivery before allowing fresh paddy would have created a bottleneck, especially with storage space already stretched thin.
In our view, the 90 per cent rule is a sensible compromise. It pushes millers to clear most of their old stock while ensuring the new crop does not wait indefinitely. The real test will be whether this policy holds up when procurement actually begins and whether millers respond as expected.
For farmers and the public, this means fewer delays in the procurement cycle. For millers, it offers a clear path to keep their businesses active. The coming weeks will show if this policy delivers on its promise.
