BHUBANESWAR: YET to recover from the huge loss sustained in 2015-16 due to poor demand of paddy seeds from farmers, the Odisha State Seeds Corporation (OSSC) is anticipating a profit of Rs 4.5 crore in 2020-21.
The annual general body of the State-run Corporation which was held for the first time on digital platform here on September 24 due to Covid-19 pandemic, approved the financial statement for 2017-18 recording a marginal profit of Rs 23.51 lakh.
In 2019-20, the Corporation had done a business of Rs 169.31 crore. As per un-audited account, the public sector undertaking is expecting a profit of Rs 4 crore.In the current financial year, the Corporation has planned to do business to the tune of Rs 175 crore notwithstanding the pandemic situation and set a target to make a profit of around Rs 4.5 crore, said Director Ashok Boral.
The Corporation is under severe financial stress since 2015-16 after sustaining a loss of over Rs 26.15 crore due to low off-take of certified paddy seeds by the farmers. The Corporation sustained the loss after implementation of direct benefit transfer (DBT) scheme as a majority of farmers did not wish to buy seeds by paying full cost as required under the new scheme.
OSSC which purchased about 5.46 lakh quintal of certified seeds from registered seed growing farmers, could sell only 2.15 lakh quintal to farmers and had to dispose of the balance stock in the open market, sustaining a loss of about Rs 26.15 crore.
The Government had partly compensated the loss by providing a subvention of Rs 7.15 crore with a promise to pay the balance Rs 19 crore. Though the Corporation is not reflecting the loss in the balance sheet, it has not been able to recover the cost in the last four financial years.
The State Government has been providing Rs 100 crore every year to OSSC to supply seeds to the farmers during kharif and rabi seasons.