Punjab Cabinet Approves Custom Milling Policy to Ease Paddy Storage Crisis

In a bid to tackle the acute storage crisis ahead of the upcoming paddy procurement season, the Punjab Cabinet led by Chief Minister Bhagwant Singh Mann has approved the Custom Milling Policy 2026-27. The new policy allows rice millers to receive fresh paddy allocations even if they have not completed delivery of rice from the previous season. Under the revised guidelines, millers who have deposited at least 90 percent of their allotted rice from the 2025-26 crop into the central pool will be eligible to procure paddy for the new season. The move aims to ensure that milling operations remain uninterrupted when government procurement begins later this month. Punjab expects a production of 18.5 million metric tonnes of paddy this season, with a target of procuring 18 million metric tonnes through state agencies. However, warehouses are already overflowing. Sources in the Food and Civil Supplies Department revealed that Punjab’s total storage capacity of 28 million metric tonnes is fully occupied with stocks from previous years. Slow lifting of rice by the Centre for distribution to other states has further aggravated the problem. Ordinarily, millers are required to deliver rice by March 31 following procurement. This year, due to storage constraints, the deadline has been extended to October 31. With the 2027 Assembly elections on the horizon, the state government is keen to ensure a smooth procurement process for farmers. Recently, CM Mann met Union Food Minister Pralhad Joshi, requesting the lifting of 1.8 million metric tonnes of rice by September 20, a demand yet to be fulfilled. In addition to the milling policy, the Cabinet also approved the Punjab Foodgrain Transport Policy 2026 and the Punjab Foodgrain Labour and Cartage Policy 2026. Finance Minister Harpal Singh Cheema stated that these measures are designed to streamline procurement and logistics. The Cabinet further sanctioned the filling of 251 vacant posts in government hospitals at Dhuri, Malerkotla, and Chamkaur Sahib, strengthening healthcare services in key constituencies.