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Centre won’t stand guarantee for Punjab’s paddy purchase
Ruchika M Khanna
Tribune News Service

The mismatch and objection

The Expenditure Department has objected to the mismatch in Punjab’s actual foodgrain stocks and the ones it is projecting in the records submitted to the Ministry of Food

The FCI says actual wheat stock available in Punjab is 97 lakh tonne, but the state has quoted a higher figure on record

The government has reportedly been asked to reconcile its records and reply to the objections by Friday

Chandigarh, October 16
The Centre has refused to stand guarantee for the Rs 23,000 crore cash credit limit the Punjab Government needs to procure 140 lakh metric tonne paddy. Punjab has so far received Rs 8,500 crore for the purpose.

Sources told The Tribune that the Expenditure Department has objected to the mismatch in Punjab’s actual foodgrain stocks and the ones it is projecting in the records submitted to the Ministry of Food. The Ministry recommends the sanction of the cash credit limit to the Reserve Bank of India (RBI).

According to the Food Corporation of India, the actual available wheat stock in Punjab, against which it can seek a cash credit limit, is 97 lakh tonne. However, the state has reported a higher figure on record. It has reportedly been asked to reconcile its records and reply to the objections by Friday.

Confirming that the Ministry of Food and Public Distribution has raised objections, DS Grewal, Secretary, Food and Supplies, said the matter was being resolved at the top level. "The Finance Department has raised these objections, but it's not a big deal and will be resolved. Our cash credit limit is Rs 23,000 crore, but it will be given to us in monthly instalments. We expect the next instalment to be released soon. The Union Ministry of Food should have no objection as we are procuring foodgrain on their behalf,” he said, adding that a meeting to resolve the issues would be held on Friday.

During the beginning of each crop marketing season, the state government seeks a cash credit limit from RBI against its existing foodgrain stocks. This limit is granted to the state after being recommended by the Union Ministry of Food. This amount is then disbursed to the state procurement agencies who purchase foodgrain from mandis through commission agents.

Though paddy procurement began in the first week of October, Punjab received Rs 8,500 crore on October 14. With procurement picking up pace, the state expects to exhaust the amount in three-four days and would need more money to continue the process. If Punjab doesn’t receive the money on time, payment to farmers would get delayed.

This is yet another instance where the NDA government, of which Shiromani Akali Dal is a constituent, has shown little mercy to the Punjab Government. Earlier, Union Finance minister Arun Jaitley, too, had refused to accept Punjab’s demand for a special assistance package, claiming the Centre had been assisting the state all along.

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