The Odisha government has urged the Centre to expeditiously release Rs 14,249.07 crore pending food subsidies for streamlining the paddy procurement operation.
State’s Food Supplies and Consumer Welfare minister Atanu Sabyasachi Nayak, in a letter to Union Minister for Consumer Affairs, Food and Public Distribution Piyush Goyal, sought his intervention in this regard.
“Huge amount of outstanding food subsidy remains receivable from the central government totaling to Rs. 14,249.07 crore as per the statement enclosed. It includes Rs 5,027.36 crore of Provisional Subsidy claim up to 3rd quarter and Rs. 1469.78 crore of unpaid Advance Subsidy claim bill for 4th Quarter of this Financial Year 2022-23,” Nayak wrote in the letter.
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As per a memorandum of understanding (MoU), there has to be zero financial liability on procuring agencies with regard to permissible items of cost to be borne by the Union government. The anticipated cost is required to be released in the form of advance subsidy at the rate of 90 per cent of admissible claim on quantity basis in the first month of every quarter, the Odisha minister stated in the letter.
The Odisha State Civil Supplies Corporation (OSCSC) Limited, the nodal agency of the state procures paddy at Minimum Support Price (MSP) from the farmers and undertakes distribution of food grains under National Food Security Act and other Welfare Schemes, shall be paid quarterly provisional subsidy after deduction of advance amount. But, the release of advance and provisional subsidy to Odisha is highly irregular, the minister claimed.
“It may be noted here that as per Standing Operating Procedure (SOP) dated 16 July 2021 issued by Department of Food and Public Distribution (DFPD) in respect of beyond rejection limit (BRL) rice stock, there is provisions for replacement of stock by rice miller followed by certification by the Joint team which is to be completed within six weeks”, the official letter wrote.
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The certificate of replacement is a mandatory document for release of subsidy to the State. But abnormal delays are being done for inspection by DFPD officials which cause hindrance for receipt of subsidy in respect of BRL rice stock. It requires your intervention for timely inspection by DFPD officials in the matter of BRL rice stocks and streamlines the process.
The delay and short release of subsidy has put OSCSC Ltd. in tremendous financial hardship on two accounts, firstly due to non-recoupment of interest and liquidity crunch to manage the procurement operations, the letter added.
