Lok Sabha Question No. 312 (STARRED), answered on 2021-08-10
Subject: Irregularities and Corruption in Procurement of Paddy
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Sunil Baburao Mendhe

## MINISTRY  OF CONSUMER  AFFAIRS, FOOD & PUBLIC DISTRTBUTTON

## GOVERilMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## 1. LOK SABHA STARRED SUESTION  NO.3{2 TO BE ANSWERED  ON {OTH AUGUST,2O2'

## IRREGULA,RITIES  AND GORRUPTION  IN PROCUREMEI{T OF PADDY

## *312.  SHRI SUNITL BABURAO MENDHE:

will the Minister  of GoNSUMER  AFFATRS, FooD At{D  puBl.rc DISTRTBUTToT  rct'tfrr er**, ur<-a sitr grffto  fril{q t'*  be preased  to state!

- (a)  the details of the compraints  received about the irregurarities and comrption  in procurement  of paddy  across the country, especiarty from the State of Maharashtral
- (b) the reasons for these irregularities;  and
- (c) the corrective steps taken/being  taken by the Government  in this regard?

## ANSWER

MlNlsrER oF coMMERcE & lNDUsrRY, coNsuMER AFFAIR$, FooD & PUBLIC DISTRIBUTTON  AND TEXTILES

(sHRr PTYUSH GOYAL)

(a) to (c): A statement  is taid on the Tabte of the House,

STATETIENT  REFERRED TO tN REpLy TO PARTS (a) TO (c) OF THE STARRED QUESTION HO.  '3I2  DUE FOR ANSWER  ON {O.OE.2O2{ IN THE LOK SABTIA

- (a):  During ongoing Khartf marketing Season (KMS) 2020.2{, 872.06 LMT paddy (uptoo3.o8.2o2r  )  has been procured  from about  .12E.72  lakh farmers spread over 23 states at 746o9 numbetlB  of procurement  centres. Goyemment of lndla /Food corDoration of lndia haye raceiyed onty  g  comptaints  during l(MS 2o2o'21. The detail of comptaints  and action taken thereon are at Annexure.
- (b):  The complaints malnly relates  to bogus purchase  from non.gcnuine fannerc, paymenl  Iess than Minimum  Support  prlce  (tsp), detay in payment, quallty issues and non availability  of infrastructure at landi/procurement Gentres.
- (c):  The comptalnts related to paddy procurement  are Investagated  and action taken in accordance  with prescribed  procedure  in this regard. Further, the following initiatives/measures  have been takon by the Goyemment  ln streamlaning the Procurement Opetaflons:
- i) Direct Benofit rransfer (DBT)  of M$p has been amplemented  across the country. This has brought in responslbllity,  transparency, reat time monitoring and reduces pllferage in the system. DBT etiminates  purchase from ficfl$ous bogus farmersr reduces  diversion  and duplication of patmont as payment  is made directly to farmei's bank account which in many states ls linked with Aadhaar number of the farmers,
- iD FGI and most of the state Governments have deyeloped  their own online procurement  syslem which ushers in transparency  and convenience  to the farmerc  through proper reglstration  and monitoring of actuat procurement.  The online procurement  systom has targely eliminated  the procurement  from middlemen  and has resulted in better targeting of the lSp to farmers.
- (iii) The state agencies have to also onsure the use of Expenditure  Advanbe Transfer  module (EAT) of Public Financiat  Modute system  (pFMs) while mak:ng payment' as mandated by the  inistry of Finance,  Got by integrating their online payment  system with PFMS  to maintain flnancial integritXr,
- iv) illinimum support  Price (MSp) oporations  are given  wide publicier through pamphlets,  bannars, sign boards, radio, TV and advertisements through  print E electronic media.
- v) Farmers are made aware of the quarity specilications and purchase system, etc.  to  facilitate br-nging their  produce conforming to  the specllications.
- yi) Procurement  .  centres are opened by respective State Govemment Agencies/ Food Gorporation  of tndia, taking Into account the producflon, marketable  surptus, convenlence  of farmers and avaitability of other logbucs / infrastructure such as storage and transportaffon,  etc. Latgc number of temporary  purchase centres, in  addltion to  the existing andas and depots/godowns  are also established at key polnts for the convenience  of farmers.

**t*r*

## $TATEMENT REFERRED TO IN REPLY TO PART (a) OF THE STARRED  QUESTIoN No.  *3{2  DUE FoR AI{swER o1{ 10.08.2021  tl{ THE LOK SABHA.

## com ts ved taken 2 u

|   Sr. No | Name of Comnlainont                                    | Dt of complaint           | Complaint against                        | FCI Region Name   | Subject matter of complaint in brief                                                                                | Action taken/Irregularities notices, if any.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|----------|--------------------------------------------------------|---------------------------|------------------------------------------|-------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Shri. Sunil B. Mendhe, Hon'ble MP (LS) Bhandara-Gondia | 16.02.2021 and 24.03.202t | State go\t. and its procurement agencies | Maharashtra       | Delay in paddy procurement, procurement of paddy from middlemen and traders and manipulation of procurement records | operations in State. FCI, Regional Office Maharashtra vide letter dated 24.05.2021 submitted the report to the principal Secretary (Food), Government of Maharashtra for remedial action. Brief of recommendations are as follows: L The State Govemment was requested to increase the pace of procurement and create sufficient space at the purchase centre for the expeditious lifting of paddy by the millers, rvhich may help in creating space at purchase centres. 2. In order to check the incoming paddy from other states, checking and monitoring by the district administration be intensified. 3. The quality of the purchased paddy was found to be of Fair and Average Quality (FAQ). State Govemment was advised to ensure that arrangement for scientific preservation of stocks be made at all the ib for Maharastra a s S DCP ta wh IS ch te, e respons en s tora and procurem t, ge centre the team. distribution |

| 2.   | News Clip                                                                              | l5- l0- 2020                     | FCI                                                     | Uttar Pradesh   | Complaint aboui iregularities at FCI Paddy Procurement Centre Nagariya Prayagpur, Powayan, Shah                                        | vestigated and could not The complaint was in be established.                                                                                                                                                                                                                                                                                                                                                    |
|------|----------------------------------------------------------------------------------------|----------------------------------|---------------------------------------------------------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.   | Shri Hamath Singh Yadav I{on'ble MP                                                    | 21-10- 2020                      | FCI                                                     | Uttar Pradesh   | Regarding the ^a [zL^-:f Pt vvsr vurvrrL crops at the price below MSP in Uttar Pradesh.                                                | I makes the payment of MSp online oiiEcriy xri.o iarmers' banK accounts, the complaint is not substantiated. Since FC                                                                                                                                                                                                                                                                                            |
| 4.   | Sh Dinesh Singh Advocate, Badaun                                                       | 12-rt- 2020                      | FCI                                                     | Uftar Pradesh   | Discrepancies in Paddy Purchase Centre Bahioi.                                                                                         | The complain t was investigated and found not established.                                                                                                                                                                                                                                                                                                                                                       |
| ).   | Shri Rajbir Singh                                                                      | 06.11.2020 28.12.2020 08.01.2021 | Shri Akhileshwar Ojha, Divisional Manager, Shahjahanpur | Uttar Pradesh   | Inegularities in the procurement of paddy in Shahjahanpur district of UP such as involvement of middlemen in paddy procurement by FCI. | nt was investigated and found not The complai established.                                                                                                                                                                                                                                                                                                                                                       |
| 6.   | Shri Sunil Mendhe Hon ble MP(LS) Bhandara, Gondia                                      | 23.06.2021                       | State Govt. and its agencies                            | Maharashtra     | Corruption and lapses in paddy procurement in Maharashtra                                                                              | t of Food and Public Distriburion, letter No 3(9) 12021-Py .1 dated 30.07.2021 has directed Govemmenl of Maharashtra to immediately constitute a joint team with FCI. Accordingly, the Government of Maharashtra on 02.08.21 has constituted a Joint Committee of five members including the District Magistrate of the concemed handara & Gondhia) and ofFCI. Departmen GOI vide revenue District (B Divisional |
| 7    | Devendra Fadnavis, Hon'ble Leader of Opposition Maharashtra Legislative Assembly. Shri | 18.06.2021                       | State Govt. and its agencies                            | Maharashtra     | Ongoing scam in the purchase of Paddy at Minimum Support Price in Maharashtra                                                          | t of Food and Public Distriburion, letter No 3(9) 12021-Py .1 dated 30.07.2021 has directed Govemmenl of Maharashtra to immediately constitute a joint team with FCI. Accordingly, the Government of Maharashtra on 02.08.21 has constituted a Joint Committee of five members including the District Magistrate of the concemed handara & Gondhia) and ofFCI. Departmen GOI vide revenue District (B Divisional |
| 8    | Smt. Archana Kumari                                                                    | 01.03.202t                       | Shri Gautam Kumar AG lI(Genl)                           | Jharkhand       | Irregularities in sending message to farmers and payrnents at PPC Chainpur (under DO Dalton                                            | Office, Jharkhand has investigated the case and conective administrative action was taken against the Paddy Purchase Centre in charge besides the issue, resol FCI Regional                                                                                                                                                                                                                                      |