Rs 40 thousand-crore PDS ricegate

New Delhi: Dropping a bombshell in Parliament, the  CAG cited irregularities exceeding Rs 40,564 crore  in the procurement and milling of paddy meant for the PDS prominently involving what are now AP and TS, among others. The period referred to is between 2009-10 and 2013-14.

 

The CAG report tabled in Parliament pointed out payments of nearly Rs 18,000 crore as support price to paddy farmers without authentication, as also undue benefits to the rice millers. The CAG sought revisiting the procurement and milling plans and suggested that the government transfer minimum support price to accounts of farmers.

 

Citing some of the major audit findings, the CAG said: “Despite significant increase in realisation value of by-products, milling charges have not been revised since 2005. This resulted in excess net  realisation of Rs 3,743 crore from sale of byproducts by millers in AP , Chhattisgarh, TS  and UP during  2009-10 to 2013-14.” The auditor said the actual figure of excess  realisation would be much higher for across the country.

 

In another finding, the CAG said, “A large number of deficiencies like non-authentication of land holdings of farmers, cases of payments to farmers with doubtful identity, non-obtaining MSP certificates, non-availability of details of farmers (bank account number, name of village etc) were noticed in AP, Haryana, Punjab, TS  and UP.”