India: New directives on rice milling charges

28/10/2014,

The Central Government of India decided to reduce charges for rice millers to about Rs 10 per quintal (around $ 1.6 per tonne), down about 33% from around Rs. 15 per quintal (around $2.4 per tonne), for the crop of the recently concluded 2014 main Kharif season. At the same time, the new directives include the suspension of the payment of transportation costs from the grain market to the Food Corporation of India (FCI)/Government warehouses, which were entirely supported by the FCI for distances not exceeding 8 kilometres or reimbursed to the millers for longer distances. Within the new regulation, FCI will not deal with transport and all transportation costs (regardless of the distance) starting from the beginning point to warehouse will be reimbursed to rice millers but the rate per kilometre which is to be reimbursed has not being fixed yet.