December 24, 2025

FRK rice supply rules spark fresh tussle between Punjab millers and FCI

Delays in Fortified Rice Kernel delivery and strict quality tests threaten milling operations and storage capacity; Punjab seeks 25 LMT non-FRK quota to ease crisis.

CHANDIGARH: The new instructions regarding the production and supply of Fortified Rice Kernel (FRK) rice by the Union Government has led to fresh tussle between rice shellers of Punjab and the Food Corporation of India (FCI).

After the union government had stated this year, out of the 104 lakh tonnes of rice to be generated from the 156 lakh tonnes of procured paddy from Punjab, at least 25 lakh tonnes will be taken as upgraded rice, which has just 10 per cent broken grains. The remaining 80 lakh tonne will be accepted only as FRK-mixed rice for the central pool.

With delays in the supply of FRK rice, milling operations have not started, although the units are stacked with procured paddy. The Punjab government has written to the Centre requesting it to accept 25 lakh tonnes of non-FRK CMR, but so far, no action has been initiated.

A letter dated November 28, sent to Chairman of Food Corporation of India by Secretary-cum-Director, Food and Civil Supplies, Punjab, reads, `"To ensure grain integrity, DFPD from this Kharif has introduced more elaborate testing protocols for pre-testing of Fortified Rice Kernels (FRKs), which is likely to result in comparatively slower pace of supply of FRK by manufacturers to rice millers. In view of slower than expected pace of FRK supply during KMS 2025-26, it is likely that slow supply of FRK may impact rice delivery of Fortified Rice (FR) to FCI during KMS 2025-26. During KMS 2024-25 also, the state was constrained to seek extension in delivery period of milling and delivery of rice during previous Kharif till September 15, 2025 well beyond the March 31, 2025 deadline."

"Accordingly, to avoid being constrained to seek extension in milling period of delivery of rice during KMS 2025-26, it is requested that Punjab be allocated a quota of Non-Fortified Rice of minimum of 25 Lakh Metric Tonnes, on lines of a similar quota being allocated by FCI to Uttar Pradesh Region. It is assured that the state is fully geared up to deliver rice at the earliest with Closure Physical Verifications (PVs) of paddy stocks stored during KMS 2025-26 have almost been completed,’’ it added.

As per the food safety and standards authority of India (FSSAI) norms, chalky grain above 5 per cent is considered unfit for human consumption that FCI as rejected the rice samples and recently suspended it’s two technical officers, a field assistant, and a quality manager as freshly milled 10 per cent of the upgraded rice supplied to the FCI has been found to be defective. Also the laboratory of the corporation has rejected the rice sample because the amount of chalky was more than 5 per cent thus panic spread in rice millers. The millers have warned that further delays in milling will lead to deterioration in the quality of rice with each passing day, leading to financial losses.

Bharat Bhushan Binta president of Punjab Rice Industry Association said that a virtual meeting held last month between FCI’s Executive Director (Quality), senior quality officials, and DFPD’s Under Secretary made it “blatantly clear” that the improved rice supplied by Punjab under last year’s ilot project did not meet the prescribed standard. "Thus they are facing serious challenges in selling this stock under the Open Market Sale Scheme (OMSS),’’ he claimed.

Binta said that they were told that the quality of improved rice procured last year from Chhattisgarh, Andhra Pradesh, and Maharashtra is “considerably better” than the stock received from Punjab. argued that despite these concerns, FCI can easily sell such rice across India under OMSS, as is being done with stocks from other states,’’ he said.

This decision has mounted more pressure on millers in the state. The orders give no deadline or timeline for the samples to be cleared,” said Ranjit Singh Jossan, Vice President of the Association.

He said, "Punjab has been grappling with acute storage shortages for three consecutive years. If FCI lifts the estimated 25 lakh metric tonnes (LMT) of improved rice from the state, the space crisis will ease significantly. But if FCI delays or refuses to accept this stock, Punjab may again face a severe storage crunch, potentially delaying delivery of the season’s total commitment of 105 LMT by more than a year.’’

A high-level meeting between state authorities and rice millers’ associations will be held on Monday, where the issue will be discussed in detail. The Punjab government and the associations are expected to formally raise the matter with the central government to find a resolution. Fortified rice are enriched with micronutrients such as iron, folic acid, B-complex vitamins, vitamin A and zinc.

News — 27 November 2025

• Record Rice Production in 2025 Kharif Season — Ministry of Agriculture & Farmers Welfare says India’s kharif-season rice output is estimated at a record 124.5 million tonnes, up ~1.4 % from last year. 

• Overall kharif foodgrain production is estimated at 173.33 million tonnes, boosted by favourable monsoon rains, though pulses, oilseeds and cotton output saw a slight dip. 

• Rising supply could exert pressure on global and domestic rice prices — some market analysts suggest that recent upticks in rice prices may not last long given improving supply and inventory levels. 

• On the export front: Indian Rice Exporters Federation (IREF) reports India is targeting 26 new global markets for rice — including Indonesia, Saudi Arabia, Japan, Vietnam, and Mexico — aiming to expand export reach significantly. 

• In parallel, government signals that India aims to double agri-exports over the next five years, opening up more global markets for Indian rice. 

📌 Summary Table

Implication: With large supply, domestic markets might see price stability or softening soon. At the same time, India’s renewed push for export diversification and expansion could help stabilize prices for farmers and create new demand abroad.

Uneven Monsoon Rainfall Raises Paddy Concerns in Punjab & Haryana

Source: Times of India

Despite overall near-normal to excess monsoon rainfall this season, several key paddy-growing districts in Punjab and Haryana experienced uneven patterns—Sangrur (–36%), Muktsar (–32%), and Bathinda (–20%) are among the affected regions. Conversely, areas like Tarn Taran reported 82% above-average rainfall. Punjab recorded a modest 4% rainfall deficit overall. In Haryana, while Ambala, Jind, Kaithal, and Karnal saw low rainfall, Kurukshetra and Hisar exceeded expectations, leading to a 13% overall surplus. Notably, Punjab’s paddy transplantation area surged to an all-time high of 32.46 lakh hectares.

What it means: Uneven rains may impact germination and crop health. Farmers and stakeholders should monitor district-wise irrigation needs and address uneven growth before it affects yields.

India’s Rice Prices Jump 14% as Bangladesh Opens Duty-Free Imports

Date: 17 Aug 2025

India (National) – Rice prices across India soared by up to 14% in just two days, following Bangladesh’s decision to lift a 20% import duty on rice. The move prompted a surge in demand and export shipments, causing significant domestic price pressure. Traders have directed shipments toward Bangladesh through land routes like Petrapole-Benapole, increasing the supply squeeze within India.

Impact on Stakeholders:

Sellers and exporters benefit from increased demand and better rates.

Buyers may struggle with rapidly rising costs.

Transporters see increased activity on export routes.

Rice Route Advisory:
Sellers should capitalize on the current export momentum, while buyers should consider lock-in contracts to mitigate further price surges. Rice Route will continue to monitor this trend and provide real-time insights for trade planning.

📢 Basmati Rice Prices Dip Slightly in Haryana Mandis

Date: 16 Aug 2025

Haryana, India – Basmati rice prices in key Haryana mandis showed a slight dip today, with rates falling by ₹50 per quintal compared to yesterday.

Traders attribute this to weaker domestic demand and higher stock availability in warehouses. While prices remain strong in export markets, local buyers are negotiating harder, leading to reduced margins for sellers.

Impact on Stakeholders:

Buyers benefit from temporary price relief.

Millers & Sellers face tighter margins.

Exporters remain optimistic due to steady overseas demand.

Rice Route Advisory:
Buyers should consider short-term contracts to take advantage of current price relief, while sellers are advised to monitor demand trends closely.

📢 Rice Prices Increase Across Punjab Mandis by ₹100 per Quintal

Date: 16 Aug 2025

Punjab, India – Non-basmati rice prices in major Punjab mandis saw a sharp rise today, with average rates increasing by nearly ₹100 per quintal compared to yesterday.

Local traders reported that the surge is primarily driven by strong export demand from Gulf countries and lower supply in local markets. Many millers believe the upward trend may continue for at least another week if demand remains strong.

Impact on Stakeholders:

Buyers may face higher procurement costs in the short term.

Sellers and Millers stand to gain from improved margins due to increased demand.

Transporters expect busier schedules as rice movement from Punjab to ports accelerates.

Rice Route Advisory:
We recommend buyers to negotiate bulk orders early to avoid higher prices later in the week. Sellers are encouraged to verify buyer credentials before confirming large shipments.

Rice Route will continue to monitor mandi updates and share daily insights to help buyers, sellers, and transporters stay informed.

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