The Odisha government today debarred five rice mills of Sambalpur from procuring paddy since these mills were found hoarding paddy even the procurement process started in the district.
Though Kharif paddy procurement process began in the district from today, the five rice mills were found stocking paddy, officials said.
The officials of Revenue Department and Civil Supply Department had conducted raids in 10 rice mills here on November 13 and found around 20,000 bags of paddy stacked in five of them.
The owners of the rice mills had also failed to explain from where they got the paddy before the beginning of procurement.
Civil Supply Officer Pitambar Acharya said, the five rice mills would be issued show cause notices after verification and they would not be involved in the paddy procurement process until they come up with proper explanations about the paddy stock.
Altogether 51 millers in the district were supposed to take part in the paddy procurement process in the district.
While the minimum support price is Rs 1,550 per quintal for common paddy, for Grade A paddy it is is Rs 1,590 per quintal.
The state government has set a tentative target to procure 2,55,882 ton of paddy in the district during the current crop season.
At least 34,285 farmers have registered for selling paddy.
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