Odisha Doubles Rice Milling Charge for Millers, Boost Paddy Procurement

KEY TAKEAWAYS:

Odisha has doubled rice milling charges for both raw and parboiled rice.
The decision aims to support millers facing rising operational costs.
Officials expect the move to improve paddy procurement and processing efficiency.

BHUBANESWAR: The Odisha rice milling charge has been significantly increased after the state government approved a proposal to double payments made to rice millers. The decision is expected to improve paddy procurement operations, address long-pending concerns of mill owners and strengthen Odisha’s agricultural supply chain.

Chief Minister Mohan Charan Majhi approved the proposal on Friday, marking one of the most significant revisions in milling charges in recent years.

Odisha Rice Milling Charge Hiked Across Categories

Under the revised structure, the milling charge for parboiled (Ushuna) rice has been increased from ₹20 to ₹40 per quintal.

Similarly, the charge for raw (Arua) rice has been raised from ₹10 to ₹20 per quintal.

The revision effectively doubles compensation for millers who process paddy procured by government agencies.

Why the Government Increased Milling Charges

Rice millers have been demanding higher milling rates for several years, citing a sharp rise in operational expenses.

Key cost pressures include:

Higher labour wages
Increased fuel prices
Rising electricity expenses
Costlier machinery maintenance
Inflation in processing inputs

Without a revision in charges, many millers argued that processing government-procured paddy had become financially challenging.

The government’s decision acknowledges these economic realities while aiming to maintain a smooth procurement ecosystem.

How the Odisha Rice Milling Charge Hike Could Benefit Farmers

Although the immediate beneficiaries are rice millers, the move could also have positive effects for farmers.

A financially healthier milling sector can help ensure faster processing of procured paddy, reducing bottlenecks during procurement seasons. This may improve the efficiency of grain movement from farms to storage facilities and eventually to the public distribution system.

The second-order effect is equally important. Stronger participation by millers could encourage smoother procurement operations, helping farmers receive timely support and reducing delays in the agricultural supply chain.

What It Means for Odisha’s Paddy Processing Ecosystem

Officials believe the revised milling charges will incentivize millers to expand participation in government procurement programmes.

Odisha is one of India’s major paddy-producing states, and efficient milling operations play a critical role in converting procured grain into rice for distribution and consumption.

By addressing the financial concerns of millers, the government hopes to create a more sustainable processing ecosystem capable of supporting future increases in paddy production and procurement.

The decision is expected to provide immediate relief to mill owners while contributing to the long-term stability of Odisha’s agriculture and food security network.

Also Read | Odisha Monsoon Forecast Points to Raja Festival Arrival, El Niño Remains Key Concern

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