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Punjab flags ₹5,400 cr pending procurement incidentals arrears from Centre
Punjab government seeks ₹5,400 crore from Centre for unpaid expenses from 2021-22, amid concerns over arhtiyas commission rates and procurement costs.
The Punjab government on Thursday sought over ₹5,400 crore towards pending incidental expenses — including mandi labour charges, interest differential and gunny bag costs — incurred during the rabi and kharif procurement seasons from 2021-22 onwards that have not been reimbursed by the Centre as per rates fixed by the jute commissioner and the Punjab Mandi Board.
Officials said this demand is over and above the ₹9,000 crore in pending rural development fund (RDF) and market fee arrears on foodgrain procurement to be recovered from the Centre.
These issues were raised in a meeting in Chandigarh with Union secretary food and public distribution, Sanjeev Chopra, on Thursday evening. Punjab chief secretary KAP and principal secretary food and civil supplies Rahul Tiwari, along with other officials, represented the state.
In a memorandum submitted to Chopra, it was stated that while issuing provisional cost sheets from 2021-22 onwards, the Union department of food and public distribution did not allow rates for various components in accordance with the principles of procurement incidentals (PPIs).
“The provisional cost sheet (PCS) wise gap in cash credit limit (CCL) account due to less fixation of incidental rates from the rabi marketing season 2021-22 was also submitted to the central ministry. The main unresolved components, where rates were not allowed as per the PPIs, led to gaps in the CCL accounts,” the memorandum said.
The memorandum lists a sum of ₹1,144 crore as pending because labour charges have not been reimbursed as per the rates fixed by the Punjab Mandi Board. The state government has sought a rate revision.
A whopping ₹3,807 is pending because the Centre reimburses 0.6% to 1% rate of interest, which is less than what is being paid by the state government to the State Bank of India, on CCL.
Explaining the gap, a senior government functionary, in the know of the matter, said the interest component on CCL is a strain on the state’s coffers.
“For example, in the yearly procurement of food grains (paddy in kharif and wheat in rabi) from Punjab, which amounts to nearly ₹80,000 crore, the interest component is huge. We have taken up the matter with the Centre’s food ministry. In case the pending amounts are released, it will ease the state’s coffers,” said a state government official, requesting anonymity.
Enhancement of arhtiyas commission
The Punjab officials also raised the issue of a hike in arhtiyas commission. The commission for arhtiyas has remained unchanged since 2019 and has been capped at ₹46 per quintal for wheat and ₹45.88 per quintal for paddy by the Centre.
An official in the state government said that, as per the Punjab Agriculture Produce Marketing Act of 1961, the commission for arhtiyas was 2.5% of the minimum support price (MSP), which will be ₹64.63 per quintal on wheat in the upcoming procurement from April.
“However, the Centre may again allow the arhtiya commission at a rate of ₹46 per quintal for wheat as per previous practise, which may lead to unrest among the arhtiyas in the upcoming season,” the official added, who didn’t wish to be named.
He further said that the commission for wheat procured at silos is being paid at half the rate — ₹46 per quintal — compared to the commission allowed for regular purchases in mandi yards, despite similar services being provided. “It is therefore requested that the arhtiya commission at silos be brought at par with that in mandis,” he said.
