Wheat procurement from Apr 1, state awaits funds

Sarbjit Dhaliwal

Tribune News Service

Chandigarh, March 27

Even as the procurement of wheat is scheduled to begin on April 1, the state government is still waiting for the sanction of the cash credit limit (CCR) of Rs20,093 crore by the Centre.

The government is expecting wheat production in the range of 168 lakh tonnes. Of this, 120 lakh tonnes is expected to arrive in the grain markets for procurement and the remaining will be retained by farmers for personal use.

The government has been facing problems in getting the CCR sanctioned on time ever since the BJP-led NDA formed the government at the Centre.

During the paddy procurement season in October-November last year, the final installment of the CCR was delayed for weeks. The farmers and commission agents had to resort to agitation to get their dues cleared.

The payment to the labour related to the paddy season was cleared only a few weeks ago. The money sanctioned under the CCR is paid to the farmers, labour and others concerned in lieu of the foodgrain procured for the central pool.

The Union Finance Ministry has been insisting that the state government should first settle the money advanced as CCR to the state in previous years. The state government, on the other hand, has been pressing the Centre to clear its pending bills worth several thousands of crores spent on the procurement and transportation of the foodgrain.

There are pending bills worth Rs26,000 crore to be settled between the state government and the Centre. The committee set up by the Centre to settle the “disputed” amount has already submitted its report. Sources said the report by and large vouched the claims such as transport charges borne by the state government. However, it wanted that the claims should be settle with prospective effect and not retrospectively.

Raj Kamal Chaudhary, Secretary, Punjab Food and Supplies Department, said: “We will raise our objections to certain parts of the report at a meeting on the matter to be held in Delhi tomorrow. We will insist that certain bills with regard to the transport charges should be cleared from the back date.” The committee was headed by PK Jha, Additional Secretary to the Union Government.

Besides transportation charges, there is an issue regarding the payment of difference amount of rotten foodgrain sold in auction at a far less price than the procurement price. As the Centre had not moved the foodgrain stock for years from Punjab, a part of it decayed and became unfit for human consumption. It had to be sold in an auction. The state government has maintained that clearing stock was the responsibility of the FCI and it (state) could not be held responsible for the rotten foodgrain.