BHUBANESWAR: As a food grain subsidy bill amounting to Rs 2872.27 crore is pending with the Centre, Odisha Government on Wednesday reiterated the demand for its immediate release to lessen the financial burden on State agencies engaged in procurement of kharif paddy.
Writing to Union Minister for Consumer Affairs, Food and Public Distribution Ram Vilas Paswan in less than one-and-half month time, Food Supplies and Consumer Welfare Minister Ranendra Pratap Swain said paddy procurement from farmers under the decentralised procurement (DCP) system will be severely affected if the pending bill is not released immediately.
Odisha State Civil Supplies Corporation (OSCSC), the nodal agency for procurement of paddy under DCP, has already procured 30 lakh tonne paddy from farmers and transferred minimum support price (MSP) of Rs 5,400 crore to the accounts of farmers.With paddy procurement going on in full swing across the State, non-release of food grain subsidy has landed OSCSC in serious financial crunch. The delay in release of funds by Food Corporation of India (FCI) has resulted in increasing bank borrowing with additional interest burden on the State PSU.
Reminding him about the December letter on the issue, Swain said the Centre has released Rs 1434.9 crore against the State claim of Rs s 4307.17 crore for the quarter ending December 2019.
Besides, the advance subsidy of Rs 1,400 crore approximately, is due for the next quarter beginning January, Swain said. “Though advance subsidy is to be released in the first month of the quarter as per the MoU with the Centre, no such subsidy has been released during the entire fiscal of 2019-20,” the letter stated.
“I would request your personal intervention for release of the pending subsidy and release of advance subsidy for the quarter ending March 2020 at the earliest,” Swain said.
In his December letter Swain had requested the Union Minister for one-time clearance of outstanding bill of the State, including interest burden on the State PSU, for market borrowing to fund the procurement business.
With a bumper harvest of paddy in the current KMS, the State is expected to procure more than 60 lakh tonnes of paddy. He said one-time clearance of outstanding dues will ensure smooth procurement and farmers will be benefited the most.
Procurement likely to be affected
OSCSC has procured 30 lakh tonne paddy from farmers and transferred MSP of Rs 5,400 crore to the accounts of farmers.
Delay in the release of funds by FCI has resulted in increasing bank borrowing with additional interest burden on the State PSU.