-104.35
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-5,301.00
-104.35
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-31.65
+ 125.00
+ 125.00
-1,284.00
Updated - July 07, 2026 at 08:21 PM.
| New Delhi
The CCEA) last week approved a new scheme named Rice Milling Transformation (RMT) under which the share of broken grain in rice supplied from the stock managed by the Food Corporation of India (FCI) has been reduced | Photo Credit: PICHUMANI K
The Cabinet Committee on Economic Affairs (CCEA) last week approved a new scheme named Rice Milling Transformation (RMT) under which the share of broken grain in rice supplied from the stock managed by the Food Corporation of India (FCI) has been reduced – from the current 25 per cent to 10 per cent in raw (white) rice and from the current 16 per cent to 5 per cent in parboiled rice.
Why is the scheme launched?
The Government has a record high of 122.64 million tonnes (mt) of foodgrain stock in the Central Pool as of June 1. It covers 68.34 mt of rice (including 42.84 mt of paddy), 53.41 mt of wheat and 0.9 mt of coarse grains. Some of the grains are lying in the open and need immediate evacuation. The current scheme will allow the government to transfer the maximum quantity out of 42.84 mt of paddy it has in stock to millers. Besides, the government will not have to lift 15 per cent of broken rice to be separated during processing, which can translate to saving space for about 4 mt. The broken rice, though under the government account, will be sold from the premises of rice millers, which will help the government save on transport costs.
How different is it from a similar scheme in Andhra Pradesh under a pilot project?
In Andhra Pradesh, the government ran a pilot scheme under which the broken rice was left with millers. In turn, they were compensated with an incentive of ₹110/quintal, as they were supposed to deposit the same 67 kg of rice containing 10 per cent broken grain from processing 100 kg of paddy, as per norms. Earlier, 67 kg of rice contained 16.75 kg of broken rice (@25 per cent). After the launch of the new scheme, millers will deliver 57 kg (including nearly 7 kg of broken grain @10 per cent) to FCI and retain with them 10 kg, which will be later auctioned by FCI.
What quantity of rice will be processed under the new quality norm in phase I?
The government has allocated 50 lt of rice under Phase I, which includes 37.5 lt of raw rice and 12.5 lt of parboiled rice. Punjab has been allotted the maximum of 14 lt of raw rice, followed by Andhra Pradesh with 10.5 lt of raw rice and 2 lt of parboiled rice. Haryana has been allotted 8 lt, Chhattisgarh 3 lt and Madhya Pradesh 1 lt of raw rice. Odisha has got 1 lt of raw rice and 7 lt of parboiled rice, while 3.5 lt of parboiled allotted to Telangana.
How beneficial will it be for ethanol distilleries?
The government has announced the open market sale scheme (OMSS) policy under which the 15 per cent separated broken rice will be auctioned from rice millers’ premises at a base price of ₹20/kg. This price is lower compared with the separate price of ₹23.20/kg announced for ethanol distilleries. If any distillery ropes in an agent or directly even participates in the auction and is able to get at ₹20-21/kg from any of its nearby rice mill his cost of production will be lower and it will be able to sell ethanol at a higher rate. Oil marketing companies buy ethanol at a higher rate when the biofuel is made out of rice purchased from the open market than from the government’s rice-for-ethanol programme.
Published on July 7, 2026
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