Centre Temporarily Halts Fortified Rice Distribution Across Welfare Schemes
The Central government has decided to temporarily suspend the universal supply of fortified rice across all its welfare programmes, including the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). This move brings significant relief to the rice industry in Punjab, which has been grappling with numerous challenges related to fortified rice kernels (FRK).
Administrative Challenges and Industry Objections Prompt Decision
According to a directive issued on Friday by the Department of Food and Public Distribution, this suspension will remain effective until authorities can identify a more efficient mechanism for delivering nutrients to beneficiaries. The decision follows persistent objections from the rice industry regarding technical and administrative challenges associated with FRK, alongside complaints of black marketing and misuse that have caused substantial financial losses to millers.
Large quantities of fortified rice from the 2023–24, 2024–25, and ongoing 2025–26 seasons are currently stored in warehouses across Punjab. Rice millers have been demanding the disposal of this accumulated stock for months. With the new decision, disposal of old fortified mixed rice will now become possible, helping to ease space constraints in warehouses and providing significant mental and financial relief to millers.
Transition Management and Future Procurement Plans
To manage this transition smoothly, the Ministry of Consumer Affairs, Food and Public Distribution has ordered an immediate halt to all yet-to-be-finalized FRK empanelment tenders and banned fresh empanelment. Manufacturers currently producing FRK must upload their batch details to the designated portal by March 30, after which no new entries will be permitted.
While states and union territories have the option to supply either fortified or non-fortified rice for pending dues of the 2024–25 and 2025–26 Kharif seasons, the Centre has directed that from the 2025–26 Rabi crop onwards, only non-fortified rice will be procured. All existing fortified stock in the central pool will continue to be distributed until exhausted.
Industry Delegation and Government Response
A delegation led by Bharat Bhushan Binta, President of the Punjab Rice Industry Association, met Union Minister Pralhad Joshi on February 12 to apprise him of these pressing issues. BJP National General Secretary Tarun Chugh and Punjab BJP President Sunil Jakhar were also present during the meeting. The rice industry has expressed gratitude to Prime Minister Narendra Modi and Minister Joshi for accepting their demand regarding fortified rice.
Ranjit Singh Jossan, Vice-President of the Punjab Rice Industry Association, confirmed that according to the Centre's official letter, the supply of fortified rice has been temporarily suspended. He emphasized that from the new marketing season 2026–27 onwards, only non-fortified rice will be delivered, providing major relief to the rice industry in Punjab.
Storage Crisis and Movement Challenges
Simultaneously, a severe shortage of storage space in Punjab warehouses has emerged as a critical concern. Currently, approximately 70 lakh metric tonnes of rice delivery remains pending. For smooth clearance, a monthly movement of at least 20 lakh metric tonnes is required. However, in recent months, the movement has been less than 4 lakh metric tonnes per month, leading to growing resentment among millers.
Millers have demanded that the old stock from 2023–24, which has been lying in warehouses for over two years, should be dispatched to other states on a priority basis. However, it was observed that the Regional Office in Chandigarh moved the new 2025–26 stock instead, allegedly deviating from the Central government's policy and leaving older stock unattended.
Seasonal Risks and Urgent Appeals
The rice industry has issued warnings about seasonal risks. With summer approaching after March, there is a heightened risk of increased broken rice percentage. Additionally, from mid-June onwards, the monsoon may cause damage to paddy stored in open areas. Therefore, the industry has appealed to both Central and state governments to immediately enhance rice movement to prevent further financial losses to millers.
This year, the Centre set a target of delivering a total of 102 lakh metric tonnes (LMT) of rice from Punjab to the central pool. Out of this, 20 lakh metric tonnes were designated as improved rice (10% broken). The temporary suspension of fortified rice distribution marks a pivotal shift in addressing the multifaceted challenges faced by the rice industry while ensuring continued welfare support through alternative means.
