1. Paddy procurement system not functioning in Odisha: CAG

Paddy procurement system not functioning in Odisha: CAG

Noting that a robust system for paddy procurement was absent in Odisha, the Comptroller and Auditor General said Paddy Procurement Centres were not functioning properly...

By: | Bhubaneswar | Published: September 26, 2016 10:16 PM
CAG said PPCs were not functioning properly as delay/ non-opening of such centres, absence of godown facilities, non-calibration of weighing machines and non-intimation of actual dates of procurement to farmers were noticed. (PTI) CAG said PPCs were not functioning properly as delay/ non-opening of such centres, absence of godown facilities, non-calibration of weighing machines and non-intimation of actual dates of procurement to farmers were noticed. (PTI)

Noting that a robust system for paddy procurement was absent in Odisha, the Comptroller and Auditor General today said Paddy Procurement Centres (PPC) were not functioning properly due to delay in their opening and in the absence of godown facilities.

Odisha State Civil Supplies Corporation (OSCSC) procured paddy valued at Rs 25,509 crore during 2010-15, but subsidy of Rs 581.68 crore for the period was not released by the Centre due to delay in finalisation of accounts, said the CAG report on General and Social Sector for the year ended March, 2015.

It said PPCs were not functioning properly as delay/ non-opening of such centres, absence of godown facilities, non-calibration of weighing machines and non-intimation of actual dates of procurement to farmers were noticed.

Against marketable surplus of 8,512.44 quintals, 17,981.51 quintals–9,469.07 quintal excess–paddy was procured from 25 farmers and 1,914.19 quintal procured from 19 farmers who had no agricultural land, it said.

Similarly, paddy was also procured without verifying farmers’ identity, without issuing vendors receipts, while payments to farmers were either delayed or not paid, it said.

In seven test checked districts, MSP of Rs 22.61 crore was paid to 2,635 farmers for procurement of 18,001.96 MT of paddy with a delay ranging from 2 to 188 days, the CAG said.

“Thus, a robust system to manage the procurement operation of paddy under MSP scheme was not established and the same was not commensurate to the magnitude of the procurement involved (Rs 25,509 crore) for 1010-15,” it said.

Instead of conducting required quality analysis, arbitrary deduction of 2 to 4 kg was made from the quantity offered for sale by farmers. As a result, an estimated 2.51 MT paddy worth Rs 305.17 crore might have been unduly passed on to the millers during 2010-15, the CAG report said.

Cover and Plinth (CAP) covers valuing Rs 1.24 crore purchased in December 2014 for creating CAP facilities to store procured paddy during the intervening period of delivery to millers was not utilised, the report said.

In all 211 millers were selected during 2010-15 Kharif Marketing Season (KMS) without verifying required documents like certificates from State Pollution Control Board, Encumbrance Certificate, DIC registration certificate. Against eligible limit of 5.75 lakh MT of paddy, 170 millers were permitted to take delivery of 9.48 lakh MT of paddy, resulting in excess delivery of 3.73 lakh MT, it said.

Against eligible limit of 5.75 lakh MT of paddy, 170 millers were permitted to take delivery of 9.48 lakh MT of paddy, resulting in excess delivery of 3.73 lakh MT, it said.

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