Punjab seeks incentives for modernising rice milling sector

CHANDIGARH: Punjab Government has sought fiscal incentives from Planning Commission for the upgradation and modernisation of state rice mills in the 12th five year plan to eliminate "considerable" delay in delivery of rice to central pool by improving efficiency of rice milling sector.

"It is for the first time that the incentives have been sought by Punjab from Planning Commission for the modernisation of rice milling sector as it is necessary to replace obsolete machinery to make the sector efficient and stop delay in rice delivery," a senior official of Punjab Food and Supplies Department said.

Punjab has also sought incentives for carrying out research and development in rice milling sector to boost manufacturing of indigenous machineries.

Planning Commission has constituted a working group to examine whether incentives could be doled out to states for grain milling across the country in 12th Five year plan (2012-2017), the official said.

Punjab has pointed out that delay in rice delivery to central pool by rice millers causes financial burden to state government with payments to state getting delayed.

"We have to bear additional financial burden due to delay in rice delivery to central pool as reimbursement from Centre also gets delayed," the official said.

State borrows funds from banks for making payment to farmers for paddy procurement every year and it gets reimbursed later. Notably, rice millers have been delaying rice delivery to the Centre for the past many years.

Punjab, which contributes has 40 per cent share of rice in central pool, has 3,460 rice milling units in the state with installed capacity of 6,500 tonne per hour.