Telangana government loses Rs 8 crore trying to help people save

Hyderabad: The TS government has suffered a loss of Rs 8 crore while disposing of old redgram stocks procured last year to control rising their prices. The government purchased the stocks last May so that it could sell redgram at a subsidised rate of Rs 120 per kg through rythu bazaar and special counters set up in all the districts when market price reached Rs 170 per kg.

Civil supplies officials procured 2,000 metric tonnes of redgram spending nearly Rs 16 crore but could sell only 11 MTs. Due to sharp fall in redgram prices later, no one came forward to purchase the stocks from the government, due to which they are lying unused in godowns for last one year.

As these stocks were getting damaged, civil supplies commissioner C.V. Anand convinced millers to purchase the stocks to save the state from further losses. However, since the quality had deteriorated over the year, the millers agreed to lift the stock for a much reduced price of Rs 7.5 crore. The total loss was put at Rs 8.04 crore. Mr Anand said though the corporation suffered a loss of Rs 8.04 crore due to lack of proper supervision, marketing strategy and fall in prices in the open market, timely disposing of of the stock saved Rs 7.50 crore.