- (1.) The dispute in this bunch of writ petitions is between the Government and the rice millers on account of condition of 67% Out Turn Ratio (recovery percentage) (hereinafter referred to as 'O.T.R.') of custom milled rice fixed by the Union Government vide circular dated 25.10.2011. In order to ensure equitable distribution of the food grains and to prevent exploitation of farmers, the Government has been purchasing food grains from farmers after paying a price known as Minimum Support Price. The food grains so purchased is harnessed into the Central Pool for distribution through Public Distribution System. For achieving the objective, the Government has framed various Control Orders under the provisions of Essential Commodities Act, 1955 and also issues notifications/executive instructions from time to time.
(2.) In case of paddy, it is purchased from farmers at Minimum Support Price, which is notified every year. After purchase, the paddy is given for hulling to licensed rice millers. The millers through a mechanical process, remove the husk and bran layers from the paddy, resulting into production of rice. The rice millers are under an obligation to return the specified quantity and quality of rice to the Government depending upon the paddy supplied to it. The process is known as 'Custom Milling of Rice (for short C.M.R.). During the kharif season 2011-12, the Government of India issued a circular letter dated 25.10.2011 fixing the Minimum Support Price of rice. The said circular also provides that O.T.R for common rice will be 67% of the paddy supplied for hulling.
(3.) The petitioners have challenged fixing O.T.R. (recovery percentage) of 67% for common rice being absolutely arbitrary, illegal and unreasonable and without considering the fact situation prevailing in different regions and part of the State of Uttar Pradesh. It is also pointed out that the said O.T.R., vide circular dated 31.8.2004, was fixed as 62% and now it has been arbitrarily increased to 67%. It is also pointed out that in view of the damage of the rice during recovery from hybrid common raw paddy, 67% recovery as per specification is not possible.;