Punjab clears OTS to revive sick rice mills, speed up paddy lifting: Minister Lal Chand Kataruchak

The Punjab government has approved a dedicated One-Time Settlement (OTS) Policy 2025 for rice millers to resolve long-pending dues, revive idle units, and ensure faster lifting of paddy during the Kharif Marketing Season, Food, Civil Supplies and Consumer Affairs Minister Lal Chand Kataruchak said.

The minister said the Mann-led government is committed to safeguarding every stakeholder in procurement and views mill owners as an integral part of the system. He noted that 1,688 millers together owe around Rs 12,000 crore to the state—about Rs 10,000 crore as interest and Rs 2,181 crore as principal—and that the new OTS requires payment of 50% of the principal to settle accounts.

How the OTS will work

• Eligibility and timeline: Defaulter millers can file applications on the Anaaj Kharid portal within one month of notification.
• Payment options: Millers may clear the recoverable amount immediately, pay a lump sum within one month, or opt for three monthly instalments.
• Objective: Cut protracted litigation, settle agency cases, revive sick units, and create more employment while ensuring smoother, quicker paddy lifting from mandis in KMS.

Why it was needed

• By rule, every miller must settle accounts with each state procurement agency after milling to remain eligible for next year’s custom milling allotment.
• Several rice mills failed to deposit dues over the years, were declared defaulters, and became entangled in court/arbitration proceedings that have remained pending for long.

According to Kataruchak, the OTS is designed to unlock stuck capacity, de-clog legal bottlenecks, and stabilise the procurement chain for farmers ahead of peak arrivals. Principal Secretary Rahul Tiwari and Director Varinder Kumar Sharma were present.

This article has been republished from The Babushahi.com