Haryana: 80,000 MT wheat stock damaged in 2017-2021, says CAG

The Comptroller and Auditor General (CAG) has pointed out that Haryana's procurement agencies failed to maintain the health of wheat stock, resulting in damage to 79,967 MT of wheat from 2017 to 2021, resulting in a loss of Rs 174.58 crore.

According to CAG, it is the responsibility of procurement agencies such as HAFED, Haryana State Warehousing Corporation (HSWC), and the Food and Supply Department (FSD) to maintain the health of stock until its delivery to the FCI. For ensuring health during storage, it is essential to maintain storage worthiness of storage space and storability of grains. It was the FCI that declared that the wheat was damaged due to “inadequate and improper storage conditions, poor preservation techniques, official apathy and negligence of custodian staff.”

The CAG mentioned that the higher percentage of damaged wheat in FSD (66,722 MT) indicated poor internal control and poor monitoring. Over 43,000 MT of damaged wheat was lying with the FSD, for which a departmental committee was formed in 2022. The tender notice included a condition that bidders must have an average annual turnover of at least Rs 15 crore over the past three years. Due to this condition, only four firms, including three consortium firms which were not engaged in the manufacturing of cattle or poultry feed, could technically qualify.

It was against the FCI guidelines (July 2014) for the disposal of damaged grains, which stipulate that damaged grains should be disposed of through tender/auction to bona fide manufacturers/consumers of feed only on the best commercial terms, following a transparent procedure, said CAG.

The report added that, meanwhile, FSD had realised a lower revenue of Rs 14.18 crore compared to the minimum disposal rates of HSWC and Rs 9.30 crore in contrast to the minimum disposal rates of HAFED for the disposal of damaged wheat during 2018-19 and 2019-20.

Excess payment of Rs 73.97 cr made to farmers in 2021

*The Food and Supply Department faced an extra burden of interest of Rs 222.24 crore due to the higher interest rates of Cash Credit Limit and funds arranged from the state budget, as it didn’t explore availing loans at competitive rates

*A penalty of Rs 54.90 crore, to be levied on transporters for the delay in lifting stock, was not imposed

*Rs 9.91 crore was payable as interest due to delayed payment beyond three days of issuing the exit gate pass, involving 2.28 lakh farmers. Only Rs 1.02 crore had been paid to 64,000 farmers

*In December 2021, an excess payment of Rs 73.97 crore was made to farmers, but Rs 27.37 crore is still recoverable, as of December 2024