Punjab Rice Millers Defy Government Ban, Buy Hybrid Paddy Despite Low OTR

Strategic Insights -

Despite a legal battle earlier this year, rice millers in Punjab have made a surprising shift from their strong opposition last year, when they refused to accept government-procured hybrid paddy varieties citing low milling outturns. However, with unpredictable weather conditions affecting crop yields this year, millers are now storing these same hybrid varieties to meet the demand for the ongoing kharif marketing season.

Key Takeaways:

  • Rice millers in Punjab have defied the state government-imposed ban on the sale of hybrid (non-Basmati) paddy seeds and are now storing government-procured hybrid paddy varieties to meet the demand for the ongoing kharif marketing season.
  • Hybrid varieties gave farmers 5-6 quintals more per acre, but millers rejected them last year on the pretext of low OTR, despite the FCI requiring a minimum OTR of 67 per cent.
  • The Punjab government banned the sale of hybrid paddy seeds in the state ahead of the 2025 kharif season, citing low OTR and high cost of seeds, but the ban was implemented too late, as many farmers had already procured hybrid seeds from adjacent states like Haryana and Himachal Pradesh.
  • Experts dispute the claim that hybrids inherently lead to low OTR and blame it on "improper harvesting and drying practices," and not the seed variety.
  • Outdated machinery in many rice mills also contributes to the poor milling performance, and experts suggest that the Punjab government should regulate and monitor the sale of quality hybrid seeds rather than imposing blanket bans.
  • Eight hybrid varieties, officially recommended for Punjab, are offered by companies such as Savannah, Bayer, Corteva, and VNR, which yield up to 35-40 quintals per acre and mature in 125-130 days.
  • Farmers call millers' sudden shift to buying hybrid paddy 'hypocrisy', while experts demand a consistent and science-backed policy on hybrid paddy to balance the interests of farmers, millers, and the government.

Statistics:

  • Average yield reduced to 22-23 quintals per acre in many parts of Punjab against the average 28-30 quintals per acre earlier, worrying shellers that they won't have enough paddy to keep their mills running.
  • OTR might come good, but farmers are against taking the risk, as last year the ratio was 60-63 per cent which resulted in significant loss.
  • Total area under cultivation in Punjab is not mentioned.

Sources:

  • IE Online Media Services Pvt. Ltd. (2025), distributed by Contify.com.