Wheat purchase nears end, but no clarity on what Centre owes Punjab
CHANDIGARH: Wheat procurement is nearing its end this Rabi season in Punjab, but the Centre has still not released the cost sheet on what it owes to the state government.
A cost sheet is a document that confirms the accruals, such as rural development fund, market fee and labour and transport charges to be paid to the state for procurement.
Postponed due to the Covid-19 surge, procurement in the state began on April 10. Against the projections for 130 lakh tonne procurement, the four state agencies — Pungrain, Punsup, warehousing corporation and Markfed — and the Centre’s Food Corporation of India have so far procured at least 129.25 lakh tonne wheat and made ₹22,500 crore payments to the farmers.
However, there is no clarity on various taxes the state agencies charge from the buyer of foodgrain, ie, the Centre. The procurement figures are expected to go up further in this week.
Sources in the food department said the payment for gunny bags supplied by arhtiyas (commission agents) have been made after the Centre’s clearance as procurement was hit due to their shortage.
The cost sheet is released by the Centre’s food and public distribution ministry. The same ministry mandated direct benefit transfer (DBT) of minimum support price (MSP) to farmers, which was implemented despite the opposition from arhtiyas. Earlier, these agents were a link between the government and farmers, and the entire payment was routed through them.
“Why can’t the ministry release the cost sheet when they have forced the DBT upon us?” said an official of the state food and civil supplies department, who didn’t want to be named. Sources in the department said that all other states engaged in wheat procurement have also reported delay in cost sheet.
After opposition by arhtiyas, the Punjab government managed to bring them on board by making minor changes in public finance management system and allowed them to view payments transferred to farmers attached to them.
“In the past, the Centre used to release provisional sheet before the start of every procurement season, but this time the season is almost over, but there are no signs of the document. It is very important, as without it, all expenditures made by the state government in transportation of wheat from mandis to godowns and the labour involved will be deemed illegal, halting the disbursal,” said the official.