Telangana: Bank guarantees mandatory for CMR paddy allotment
The state government issued fresh guidelines on Tuesday for paddy procurement making the bank guarantee or security deposit mandatory for CMR operations with effect from the Kharif marketing season 2024-25
Hyderabad: Allotment of paddy to the millers for custom milling will be made from now onwards against bank guarantee or a security deposit. The state government issued fresh guidelines on Tuesday for paddy procurement making the bank guarantee or security deposit mandatory for CMR operations with effect from the Kharif marketing season 2024-25.
The criteria for this allocation will be varying based on the miller’s history of defaults. Millers with no previous history of default will merit consideration for the CMR allotment with either ten per cent of the value of the paddy in form of bank guarantee or 25 per cent as security deposit on the approved milling capacity.
Previous defaulters who have cleared CMR dues along with penalty will be considered for allotment of paddy against 20 per cent as bank guarantee or 25 per cent as the security deposit. Previous defaulters who have cleared 100 per cent dues with 25 per cent penalty pending must provide 25 per cent as bank guarantee or security deposit towards the 25 per cent pending penalty component in addition to 25 per cent on the approved milling capacity of the mill.
