Frequent and prolonged power cuts have forced Punjab rice millers to shut down their milling operations. Consequently, millers have announced they cannot purchase basmati stocks just as the 1509 variety has started arriving in the mandis.
The millers are demanding an uninterrupted power supply to keep their operations running. Out of the state’s 5,500 rice mills, a small section receives category I supply, while the majority fall under categories II and III, which have been severely affected by power cuts.
“The cuts last as long as 15 hours a day. The situation has been acute for the past 15 days, and because our industry runs round-the-clock operations, we are bearing heavy losses,” said Bharat Bhushan Binta, president of the rice millers association.
He added that if the problem persists, the mills will have to be shut, operations closed, and he raised apprehensions that it will become difficult to process the custom milling rice (CMR). Paddy procurement is expected to begin from October 1.
The rice milling industry faces a worrisome situation as millers are already under pressure to finish custom milling the previous season’s crop stored on their premises, just as freshly harvested basmati begins arriving in the mandis. At least 20,000 tonnes of new basmati have already arrived in the mandis.
The central government has extended the last date for the delivery of CMR for 2025-26 up to November 30, 2026, but this has not resolved the problem. According to reports, out of approximately 5,200 rice mills in Punjab, nearly 80% still have stock from the previous season, and around one million metric tonnes of rice are reportedly yet to be delivered.
The state government and mill owners face a dilemma over clearing the rice stocks from the previous season. Although the state is urging the Centre to evacuate at least 14 lakh tonnes of rice from the previous season, severe power shortages prevent the mills from operating at full capacity.
“If the power cuts continue, the paddy from the previous season stored in the mills cannot be processed and sent to the consuming states under the public distribution system (PDS),” said Ranjit Singh Jossan, vice-president of the Rice Millers Association.
Basant Garg, power secretary and chairman-cum-managing director, Punjab State Power Corporation Limited (PSPCL), said that the power situation has improved significantly and there will be no power cuts.
He said that all state-run and private thermal plants are operating at full capacity, supplying around 5,300 megawatts. However, despite receiving 2,800 megawatts from the central pool, the PSPCL is facing a 550-megawatt shortfall.
According to reports, intense heat and humidity have driven the state’s power demand above 16,500 megawatts.
Under the recently declared CMR Policy 2026–27, the state government has made the timely completion of milling mandatory to qualify for allocations in the upcoming season starting October 1.
“Under the new policy, millers who deliver up to 90% of the rice against the paddy allocated to them in 2025-26 are eligible for fresh paddy allocation for the new season. But in case the power conditions continue, the 90% condition cannot be fulfilled, and the government will have to amend the policy,” said Jossan.
Gurpreet Singh Nibber is an Assistant Editor with the Punjab bureau. He covers politics, agriculture, power sector, environment, Sikh religious affairs and the Punjabi diaspora. His work in agriculture sector has been recoganised by Indian Council of Agricultural Research (ICAR), New Delhi with an award of excellence. He possesses a strong understanding of politics, people and cultural ethos of the land, and believes in fact based ethical journalism. In his career spanning over two decades he continues to write path breaking people centric, investigative and policy driven stories with an indelible impact.Read More