For thousands of rice mills across India, government custom milling is the backbone of the business — and its paperwork is the biggest operational headache. This guide explains the Custom Milled Rice (CMR) process end to end: what it is, what you are obligated to deliver, the season schedule, how it differs by state, and where mills most often lose money or fall out of compliance.
What is Custom Milled Rice (CMR)?
Under CMR, the government — through the Food Corporation of India (FCI) and state agencies — buys paddy from farmers at the Minimum Support Price (MSP) and gives that paddy to selected private rice mills to mill on its behalf. The miller does not own the paddy; it mills the government's paddy and delivers finished rice back into the central pool. In return the miller earns milling charges (and keeps the by-products, subject to state rules).
This is fundamentally different from open-market milling, where the mill buys its own paddy and sells its own rice. Under CMR you are handling someone else's grain against a strict obligation — so tracking allotment, milling, and delivery accurately is not optional.
The miller's core obligation: 67% + 1% FRK
For Kharif Marketing Season (KMS) 2024–25, a miller is required to deliver 67% rice against the total paddy allotted, of which 1% must be Fortified Rice Kernels (FRK). In plain terms: for every 100 quintals of paddy you receive, you owe 67 quintals of rice back to the pool.
This is where recovery matters. If your mill's real milling recovery runs below the assumed out-turn, you make up the shortfall from your own pocket. (See our guide on calculating milling recovery.)
Obligation and out-turn rates are re-notified every marketing season and can differ by state and paddy grade — always work from the current KMS notification, not last year's.
The delivery schedule
CMR delivery is staged across the season so the government receives rice steadily rather than in one lump. For KMS 2024–25 the schedule ran roughly:
| By end of | Cumulative rice to be delivered |
|---|---|
| November | 15% |
| December | 40% (a further 25%) |
| January | 65% (a further 25%) |
| February | 90% (a further 25%) |
| 15 March | 100% (final 10%) |
Missing a milestone risks penalties and affects future allotment, so mills need a live view of "delivered vs due" at every checkpoint — not a spreadsheet reconciled after the fact.
How CMR differs by state
The CMR concept is national, but procurement runs through state portals and agencies, and the rules differ in the detail:
- West Bengal — procurement via the e-Paddy portal, with agencies such as WBECSC and BENFED. (See our dedicated West Bengal rice-mill software page.)
- Uttar Pradesh — procurement through the Food & Civil Supplies Department (fcs.up.gov.in), using biometric E-PoP (Electronic Point of Purchase) devices at purchase centres. (See our Uttar Pradesh rice-mill software page.)
- Odisha — procurement operated through OSCSC. (See our Odisha rice-mill software page.)
- Bihar — PACS-based procurement via esahkari.bihar.gov.in with the SFC. (See our Bihar rice-mill software page.)
A mill operating across, or moving between, states has to satisfy each state's portal, forms, and deadlines — which is why generic accounting software rarely fits.
Where mills lose money and fall out of compliance
- Allotment vs delivery drift — losing track of exactly how much paddy was allotted, milled, and delivered against each memo.
- Out-turn shortfall — real recovery below the assumed rate, quietly funded by the miller.
- Transit and "bata" — handling transit excess/shortage correctly.
- The 7.1 / out-turn reconciliation — the final settlement that ties allotted paddy to delivered rice and by-products; errors here trigger recovery notices.
- Security deposit and physical verification — staying audit-ready against stock checks.
How software makes CMR manageable
The entire CMR lifecycle — levy memo → camp/pickup → gate receipt → milling → CMR delivery → reconciliation — is a tracking problem with hard deadlines and government forms. A rice-mill ERP that models it natively keeps allotment, milling, and delivery reconciled in real time, so you always know what you owe, what you've delivered, and where you stand for the 7.1 settlement.
Run your entire CMR obligation on one system
Millingo, Svasamm's rice-mill ERP, tracks levy memos, camp pickups, CMR deliveries and release orders, and does the 7.1 out-turn reconciliation — with the state-specific workflow for West Bengal and beyond built in. See Millingo → or book a free consultation.
Frequently asked questions
What is Custom Milled Rice (CMR)?
CMR is rice a miller produces from government-supplied paddy. A state agency or FCI procures paddy from farmers at MSP and hands it to selected mills, which mill it and return finished rice to the central pool for milling charges.
How much rice must a miller deliver under CMR?
For KMS 2024–25, 67% rice against allotted paddy, including 1% Fortified Rice Kernels (FRK), delivered on a staged schedule. The exact rate and dates are notified each season and vary by state.
What is FRK in CMR?
Fortified Rice Kernels — rice kernels enriched with micronutrients (iron, folic acid, B12) that must be blended into the delivered rice (1% for KMS 2024–25) as part of the government's fortification programme.