Punjab plans to buy wheat worth ₹ 210-cr through FCI’s scheme - Hindustan Times
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Punjab plans to buy wheat worth 210-cr through FCI’s scheme

Feb 08, 2023 09:08 PM IST

Department of Food and Civil Supplies, Punjab has decided to buy wheat from the open market sale scheme started by Food Corporation of India.

CHANDIGARH The department of Food and Civil Supplies, Punjab has decided to buy wheat from the open market sale scheme (OMSS) started by the Centre’s agency Food Corporation of India (FCI), to cover up the shortfall of Centre’s National Food Security Act (NFSA) scheme.

As per estimates, Punjab government has set a target to purchase 70,000 tonnes of wheat. (HT file photo)
As per estimates, Punjab government has set a target to purchase 70,000 tonnes of wheat. (HT file photo)

The food department has planned to make wheat purchases after the Centre has conveyed that it would not fund for wheat under the scheme beyond the limit of 46% of the population, a norm fixed in the Act. To expedite the grain purchase, the food department has written to the state’s finance department (FD) for sanction of the funds.

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The requirement of procuring wheat stocks necessitated after the Centre capped Punjab’s number of beneficiaries to 1.41 crore (46% of state’s total population) for reimbursing supply of wheat of the beneficiaries under the NFSA scheme and Punjab has 16 lakh (11%) more beneficiaries than that, with a total to 1.57 crore. In an ongoing door-to-door survey conducted by the state food department, 8 lakh beneficiaries have been found to be ineligible. So far 70% survey has been completed.

As per the cap imposed by the Centre, it has conveyed the state that it would funds for wheat more than 2.12 lakh tonnes annually, cutting down from the requirement of 2.36 lakh tonnes, imposing a cut of 24,000 tonnes. The Centre’s capping comes into effect from the start of third quarter of the current year.

As per estimates, state government has set a target to purchase 70,000 tonnes of wheat, cost of which has been pegged at 210 crore, at about 2,300 per quintal. “We have written to the FD that funds are required, explaining them the entire case,” said principal secretary, food and civil supplies department, Rahul Bhandari.

In case, the state government wants to continue catering to the beneficiaries, despite they have been found to ineligible, the state government has to pay for that, said an officer of the food department not willing to be named. So far, the state government has not taken decision on the matter and wants the department to give a report on final survey expected to be completed by February 15.

OMSS scheme was started by the Centre to stabilise the rising prices of wheat and wheat flour, as the grain prices in the market touched 2,900 and wheat flour was selling for 37 a kilogram. The FCI carries out auction every Thursday and so far in the auction that began last month, 2.7 lakh tonne has been sold from the FCI stocks stored in Punjab.

The state food department wants to expedite the matter for the reason that state’s wheat stocks are depleting as currently 15 lakh tonnes where is stored in the state godowns, out of which 9 lakh tonnes are in the custody of state government and remaining 6 lakh tonnes with the FCI.

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  • ABOUT THE AUTHOR
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    Gurpreet Singh Nibber is an Assistant Editor with the Punjab bureau. He covers politics, agriculture, power sector, environment, Sikh religious affairs and the Punjabi diaspora.

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