Currently, the rice with 10 per cent broken grain is being sold to private players and “maybe” in the next phase the government will consider to supply through the Public Distribution System (PDS).

By BL New Delhi Bureau

After the success of a pilot project last year in four States, the Centre is ready with a plan to segregate broken grain percentage in as much as 50 lakh tonnes (lt) of rice this year. This will improve the quality of the cereal and potentially increase its value in the market when auctioned.

Last year, the Food Corporation of India (FCI) had asked some mills in Punjab, Haryana, Telangana and Andhra Pradesh to segregate the 15 per cent broken rice separately from 10,000 tonnes of grain (in terms of rice) to be processed under the custom milled rice (CMR), in each State. The idea is to reduce the broken grain percentage, normally 25 per cent, in the rice procured for the Central Pool.

As the government has allocated 52 lt of rice for ethanol, it wants the entire quantity should be 100 per cent broken grain. Under the plan, after segregating 15 per cent broken type, the remaining rice will carry maximum 10 per cent broken grain, which will increase its market value, sources said.

How it works

For instance, if a rice mill under CMR system has to supply 100 quintals of rice to FCI, it will supply 85 quintals of rice in one bag and another 15 quintals of broken rice in another bag. The 85 quintal will include 10 quintal of broken rice whereas the entire 15 quintal will be only broken variety.

Speaking on the sidelines of the edible oil conference, organised by the Indian Vegetable Oil Producers’ Association (IVPA), Food Secretary Sanjeev Chopra said that the rice with 10 per cent broken will be auctioned in the open market.

He said that broken rice will be auctioned from the rice mill itself to distilleries to save on transport, storage and fortification costs.

Sources said that there is very poor demand for FCI’s rice when auctioned in the open market, as result the government has been facing problems to liquidate the excess stock after meeting the obligations under welfare schemes including the food security law.

Reining in factor

Currently, the rice with 10 per cent broken grain is being sold to private players and “maybe” in the next phase the government will consider to supply through the Public Distribution System (PDS), he said adding selection of a particular area for PDS sale of that rice (with 10 per cent broken grain) is not feasible right now. “When we do it, we will do it in the entire country,” he said.

Chopra said there is no need now to sell wheat from government stocks under the open market sales scheme (OMSS) as supplies are adequate and prices stable. The market knows that the government has enough stock and can intervene at any time which is a major factor to check price rise.

“Adequate stocks are there. We have procured very healthy quantity, so have all the private players. So there is adequate supply in the market. OMSS is meant for stabilizing the prices, the prices are already stable. So then there is no need for wheat to be offered through OMSS,” Chopra said.

Record wheat output

The government sold about 30 lakh tonnes (lt) of wheat under OMSS during 2024-25 fiscal and about 100 lt in 2023-24.

The country’s wheat production is estimated at a record 117.5 million tonnes in 2024-25 crop year (July-June) out of which the government had purchased 30 mt from the new harvest.

On sugar exports, Chopra said India has already exported about 8 lt of the sweetener so far in the 2024-25 season (October-September) and there will not be any need to extend any quantity is left out after September 30.

The government had permitted 10 lt of sugar for exports in January 2025, allocating mill wise quota. He also said it is too early to decide on export quota for next season.

Published Date: July 25, 2025