Gunny bags not offloaded, Rlys fines state Rs4 cr

Aman Sood

Tribune News Service

Patiala, April 20

Amid the wheat glut in various markets across Punjab, labour pangs have brought along another problem for the cash-strapped state government.

Due to labour shortage, the five state procurement agencies that operate in Punjab have not been able to offload gunny bags used to store wheat. The stock lies stacked in 300 wagons stranded at eight railway stations across the state since April 11.

Now, the Indian Railways has made it clear to the procurement agencies that it would not allow the offloading of the jute bags till these bodies paid penalty — to be furnished through demand drafts —for delaying the process.

Sources said the penalty had already crossed Rs4 crore. They said the delay had been caused as labour unions were staging dharnas in support of their demands and, in the process, ensuring that the gunny bags were not offloaded.

The Railways, as per rules, can levy an hourly fine of Rs150 per wagon in case the agency concerned fails to offload the stock ordered by it upon its arrival at a railway station. The penalty is hiked subsequently.

“The fine in the present case has been revised as demurrage charges to Rs600 per wagon per hour,” said Bhupinder Singh, railway goods supervisor. “The wagons can now be offloaded only when the Railways receives the entire pending fine through a demand draft. We do not accept payments through cheques as these can get dishonoured and, thus, cause delay in payment,” he said.

At present, the 300 wagons stranded in Punjab are costing the state Rs2.1 lakh per hour (Rs50 lakh a day). Each wagon has 130 bales and each bale comprises 500 bags worth Rs25 each. The wagons are stranded in Ferozepur, Sangrur, Muktsar, Sirhind, Bathinda, Barnala, Khanna and Patiala.

Interestingly, these stranded wagons have meant that the railway lines on these stations cannot be cleared for other trains, thus resulting in losses for the railways. “We have re-routed rail traffic due to failure of the agencies to clear these wagons,” said Bhupinder.

A senior Food and Civil Supplies official confirmed to The Tribune that the amount to be paid as fine was inevitable now, and that the five state procurement agencies would have to share the burden.

Mohan Singh, Patiala unit president of the Punjab Palledar Mazdoor Sangharsh Committee Food Agencies, said their committee was against the tendering process of labour and wanted direct payment. “The government can cough up crores as fine to the Railways, but is reluctant on paying the poor labourers,” he said.

About the penalty and how it’s calculated

 Due to labour shortage, the five state procurement agencies in Punjab have not been able to offload gunny bags from railway wagons 

The stock lies stacked in 300 wagons stranded at eight railway stations across the state since April 11 

The wagons are stranded in Ferozepur, Sangrur, Muktsar, Sirhind, Bathinda, Barnala, Khanna and Patiala

The Railways, as per rules, can levy an hourly fine of Rs 150 per wagon (penalty is hiked subsequently) in case the agency concerned fails to clear wagons 

The fine in the present case has been revised as demurrage charges to Rs 600 per wagon per hour

At present, the 300 wagons stranded in Punjab are costing the state Rs 2.1 lakh per hour (Rs 50 lakh fine a day)

Only demand draft, please

The wagons can now be offloaded only when the Railways receives the entire fine through a demand draft. We do not accept payments through cheques as these can get dishonoured and, thus, cause delay in payment. — Bhupinder Singh, railway goods supervisor

3.5 lakh bales needed 

• Punjab needs approximately 3.5 lakh bales (each bale contains 500 bags of Rs 25 each) of gunny bags for wheat procurement this season 
• The state is the biggest contributor of foodgrain to the Centre’s procurement drive
• Under the Jute Packaging Act, 1987, the use of jute bags is mandatory for packing foodgrain and other materials beyond 25 kg a pack
• Punjab has faced difficulties in the past in getting timely supply of gunny bags for procurement of wheat and paddy 
• The gunny bags are supplied from Kolkata where the jute mills are located
• Punjab has been pleading for flexibility in the Jute Packaging Act so as to ensure alternate sources for procuring bags to tackle the shortage in supply