Non-functional from Day 1, Hafed mill losses run into crores

CHANDIGARH: A recent inquiry into the functioning of Modern Rice Mill of the Haryana Cooperative Supply and Marketing Federation Ltd (Hafed) set up at Taraori (district Karnal) in 2012 had found that the facility has been non-functional since Day 1 and causing huge losses to the parent body. The largest apex cooperative federation of the state, Hafed is known for its quality products including basmati rice and mustard oil, sold under its own brand name.

Hafed vigilance officer conducted an inquiry, completed about two months ago, states that the said mill, which was set up by a Mohali (Punjab)-based company at a cost of about ₹1.5 crore, had a non-functional shelling unit and that over 1,000 tonne paddy (basmati) purchased in 2015 had not been processed and was lying with Hafed.

The Hafed committee pointed out some defects during its verification of the mill’s erection, commissioning and final trial runs in 2013, 2014 and 2015. Yet, the company did not get them completely repaired or unit replaced nor could the officials concerned get the unit to function nor did they take any action against the company.

The inquiry points out that the de-husker unit of the mill had not been working properly because of which the rice was getting mixed with the husk as about 23% of rice was found to be mixed against the standard norm of 18.5%.

The inquiry held that while over 1,000 tonne paddy (basmati) purchased during 2015 had not been processed yet, it transpired from records that since there was sufficient stock of basmati paddy and brown basmati with Hafed, the sale of processed basmati rice could not be done.

NO PADDY MILLED IN 2016 AND 2017

During 2016 and 2017, no paddy was milled being the sufficient stock lying with Hafed due to the low sale of rice, it says. The inquiry adds efforts had not been made to sell the basmati to liquidate the old stock of paddy and to avoid losses on this account.

Moreover, there was also lapse as to why the paddy worth about ₹3 crore was purchased in excess during the period in question as there was not much sale of rice. This meant that the old stock of paddy could not be processed and remained with Hafed.

Hafed MD Shekhar Vidyarathi refused to comment, saying that the matter was being looked into.