Surplus Stocks Find a Home: Centre Approves Lifting of Additional 4 Lakh Tonnes of Rice from Odisha

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In a significant move that brings much-needed relief to the Odisha government and the state’s farming community, the Union Ministry of Consumer Affairs, Food and Public Distribution has approved the lifting of an additional four lakh tonnes of rice into the central pool. This decision effectively resolves the mounting crisis over the disposal of surplus custom-milled rice (CMR) in the state.

Breaking the Logjam

For months, Odisha had been grappling with a massive surplus of approximately 12 lakh tonnes of rice. This stock remained after meeting the requirements of the National Food Security Act (NFSA) and the State Food Security Scheme (SFSS). The situation had become critical as the state faced severe storage bottlenecks, with millers unable to accept new harvests due to lack of space.

With this latest approval, the Centre has further revised the paddy procurement estimate (in terms of rice) for the 2024-25 Kharif Marketing Season (KMS) from 58 lakh tonnes to 62 lakh tonnes.

A Timeline of Relief

The resolution did not happen overnight. The journey to this clearance involved several stages of intervention:

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  • October 2025: The original estimate of 50 lakh tonnes was first revised to 58 lakh tonnes.

  • Early December 2025: Rice millers in Odisha went on strike, refusing to participate in the new procurement cycle until the old stock was moved. The state government intervened by increasing transportation charges and promising faster evacuation.

  • December 23, 2025: The final approval for the remaining 4 lakh tonnes was communicated, bringing the total central lifting target to 62 lakh tonnes.

Of the remaining surplus, the state has already utilized approximately 82,000 tonnes by distributing an additional monthly quota of 5 kg to PDS beneficiaries.

The Parboiled Rice Challenge

A major part of the “rice woe” stemmed from the high production of parboiled (Ushuna) rice in Odisha. While the state is a leading producer of this variety, the Food Corporation of India (FCI) had previously slowed down lifting due to lower demand in other states like Bihar and West Bengal.

A high-level delegation, led by Union Minister Dharmendra Pradhan, had recently met with Central officials in New Delhi to specifically urge for an increase in the parboiled rice quota. This latest approval is seen as a direct outcome of those negotiations, ensuring that the financial interests of Odisha’s “Annadatas” (farmers) are protected as they transition into the next harvest season.

What This Means for Farmers

With the FCI now ramping up the evacuation process—transporting nearly 2 lakh tonnes in the last fortnight alone—storage space is finally opening up. This ensures that the state’s ambitious target of procuring 93 lakh tonnes of paddy for the 2025-26 season can proceed without logistical hitches, maintaining the momentum of the agricultural economy.

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