Punjab govt may find it tough to recover dues from rice mills.

Despite having announced a one-time settlement scheme, the Punjab government may not get back its dues from “defaulter rice millers”, several of which even sold their machinery years back and shifted to other businesses. Around 250 to 300 defaulters, most of them from Gurdaspur, Amritsar, Sangrur, Firozpur, collectively owe the state government Rs 2,000-2,400 crore. Most of these mills owe between Rs 5 crore and Rs 10 crore each to the government. There are over 3000 rice mills in Punjab. Every paddy harvesting season, the state government’s procurement agencies supply paddy to these rice mills for milling (making rice from paddy). After the milling, a part of the rice produce is returned to the state government, which is further supplied to the central pool. Millers get milling charges from the government.