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Wheat procurement nears end, but no clarity on what Centre owes to Punjab
Sources in the Punjab food and civil supplies department say all other states engaged in wheat procurement have also reported delay in release of cost sheet by the Union government
Wheat procurement is nearing its end this Rabi season in Punjab, but the Centre has still not released the cost sheet on what it owes to the state government.
A cost sheet is a document that confirms the accruals, such as rural development fund, market fee and labour and transport charges to be paid to the state for procurement.
Postponed due to the Covid-19 surge, procurement in the state began on April 10. Against the projections for 130 lakh tonne procurement, the four state agencies — Pungrain, Punsup, warehousing corporation and Markfed — and the Centre’s Food Corporation of India have so far procured at least 129.25 lakh tonne wheat and made ₹22,500 crore payments to the farmers.
However, there is no clarity on various taxes the state agencies charge from the buyer of foodgrain, ie, the Centre. The procurement figures are expected to go up further in this week.
Sources in the food department said the payment for gunny bags supplied by arhtiyas (commission agents) have been made after the Centre’s clearance as procurement was hit due to their shortage.
Payments to contractors stuck
The cost sheet is released by the Centre’s food and public distribution ministry. The same ministry mandated direct benefit transfer (DBT) of minimum support price (MSP) to farmers, which was implemented despite the opposition from arhtiyas. Earlier, these agents were a link between the government and farmers, and the entire payment was routed through them.
“Why can’t the ministry release the cost sheet when they have forced the DBT upon us?” said an official of the state food and civil supplies department, who didn’t want to be named. Sources in the department said that all other states engaged in wheat procurement have also reported delay in cost sheet.
After opposition by arhtiyas, the Punjab government managed to bring them on board by making minor changes in public finance management system and allowed them to view payments transferred to farmers attached to them.
“In the past, the Centre used to release provisional sheet before the start of every procurement season, but this time the season is almost over, but there are no signs of the document. It is very important, as without it, all expenditures made by the state government in transportation of wheat from mandis to godowns and the labour involved will be deemed illegal, halting the disbursal,” said the official.
According to another senior official in the department, MSP has been disbursed through the cash credit limit received at the start of the procurement. “But for making other payments, we need clearance from the Centre, and so far payments to the tune of ₹2,000 to be made to transporters and labour contractors are pending,” he said.
The Centre has fixed ₹46 per quintal as dami (commission) to be paid to arhtiyas, but in the absence of the cost sheet, even that can’t be transferred into their accounts.
RDF, market fee and more
The Centre has also failed to provide any clarity on the rural development fund (RDF) to the state government.
During paddy procurement in the last Kharif season, the Centre provisionally allowed the state to charge 1% RDF, instead of 3%, according to provisions of its Agricultural Produce Market Committee Act.
RDF goes to the rural development board led by the chief minister and is used for development in villages.
On being asked for a justification for charging 3%, the state has sent all facts and figures to the Centre, explaining the fund’s importance, but so far there is no response, and the issue remains unclear in the current procurement season.
The cost sheet will also give clarity on market fee (3%) that goes into the kitty of the mandi board that manages 1,850 mandis for procurement of wheat and paddy in Rabi and Kharif seasons.
Principal secretary, food and civil supplies, Punjab, KAP Sinha said he would take up the matter with the Centre.
