Food Corporation of India hits pause on rice procurement due to TS govt irregularities

New Delhi [India], July 20 (ANI): The Food Corporation of India (FCI) has paused rice receipts from the 'Central pool' to Telangana under the Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) alleging that the state government had deprived the beneficiaries of the central public distribution scheme and failure to comply with set standard operating procedures by defaulting millers.
Central agency FCI in several letters to the K Chandrashekhar Rao (KCR)-led Telangana government had reminded them to address issues immediately and furnish an action-taken report after multiple irregularities were found in the physical verification of the mills.
The central food distribution and procurement agency found that the Telangana Rashtra Samiti government in the state, despite having lifted a considerable quantity of rice from the central pool had not distributed it among the beneficiaries.
The state has already lifted 1.90 lakh tonnes from Decentralized Procurement Scheme stocks during April and May, sources told ANI.
In March this year, a list of defaulter millers where shortages of rice had been noticed was communicated to the State government and was being asked to take immediate actions. As many as 453,896 bags of paddy were found short in a total of 40 mills, sources said.
Again in May, shortages of another 137,872 bags were noticed in 63 mills.
During verification of the rice stocks, the Central team alleged that the paddy was not stored in a countable position due to which the physical verification of stocks could not be completed due to the lack of proper bookkeeping and standard operating procedures by the defaulting millers.
In a recent letter addressed to the Civil Supplies Department of the Government of Telangana, the center's decision to put on hold rice procurement was enumerated with the reason behind this decision. "Despite considerable time period has lapsed, till date no concrete strict action has been taken by the state government in above regard against default millers where shortages have been noticed," read the FCI letter.
Taking into consideration the inaction by the state government against defaulter millers and non-distribution of PMGKAY foodgrains, the FCI, through a letter, informed that there would be no further rice receipts in the central pool till further orders.
"Here it is pertinent to mention that PMGKAY is a Government of India scheme where free food grains are being distributed among poor people. Because of the non-distribution of free rice stocks, already lifted by the State Government, the beneficiaries are deprived of the benefits of PMGKAY," it said in the letter.
Under the PMGKAY scheme which was launched during the initial days of Covid-19 pandemic, the Centre provides 5 kilograms of free food grains per person per month in addition to the subsidized ration provided through the public distribution system.
The Union government, procures food grains at minimum support prices for distribution at subsidised prices through the public distribution system (PDS).
Telangana procures rice from its farmers based on its own requirements and after keeping what it requires for PDS distribution, the remaining rice is transferred to the FCI.
The FCI has an agreement with states on how the procurement takes place.
Telanagana CM, KCR has been agitating against the Centre for "dicriminating" against the state for refusing to buy its parboiled rice - rice that has been partially boiled before husking.
Some states consume parboiled rice while others do not. The Centre has argued that since the demand for such variety of rice is low, it would be a waste to buy in excess quantities. (ANI)