CHENNAI: The TVK government has procured tur dal at `77.89 per kg for public distribution through fair price shops, which is nearly `31 or 29% cheaper than the `109.15 paid per kg by the previous DMK regime, thereby saving `187.56 crore for the state exchequer in last three months.
While the TVK government had spent `467.34 crore to procure 60,000 tonnes of tur dal from July to September, the DMK government, since July last year, had spent `654.9 crore every three months to procure dal of identical quantity, quality, and specification.
If the TNCSC manages to secure the same price in the next three tenders (for nine months) for procuring tur dal, the annual savings to the state exchequer could increase to around `750 crore.
Considering the hike in inflation and lack of significant change in the price of the commodity in India and international markets, the substantial reduction in procurement cost of dal has raised questions as to whether the state had overpaid for procurement under the previous regime.
The last tender floated during the DMK regime was finalised on May 2, two days before the announcement of the election result, and the procured stocks were used for distribution until the end of August. Every month, 20,000 MT of tur dal is allocated for distribution to ration cardholders at the rate of one kg per card. Of these, 86% to 88% of cardholders purchase the commodity at a subsidised price of `30 per kg.
The work orders issued by the Tamil Nadu Civil Supplies Corporation (TNCSC) to six contractors for procuring tur dal to supply from September, a copy of which is available with TNIE, show that the corporation has paid an average of `77.89 per kg.
DMK govt paid higher price for buying tur dal?
The procurement price is also mentioned in the official documents, including the policy note tabled in the recently concluded Assembly, for the first tender floated after the TVK government assumed office. Similarly, bills issued at ration shops since July last year, copies of which are available with TNIE, show that the DMK government procured the dal at `109.15 per kg.
Shilpa Prabhakar Satish, Managing Director, TNCSC, told TNIE that there was no change in the specifications or quality parameters for the procurement of tur dal in the recently concluded tender. Asked how the procurement price was `31.26 per kg lower than what was paid under the previous DMK government, she said all tender norms had been followed as per the existing procedures.
“There may have been more suppliers participating in the tender this time,” she added. A food department official pointed out that under the special PDS, cooking oil was procured at `154.99 per litre under the incumbent government, compared with `143.91 per litre during the DMK regime.
“Given the higher inflation and the rise in the wholesale price index for food commodities in the domestic and global markets, the TNCSC’s procurement price for tur dal should ideally have increased by 5% to 10%. Instead, it has declined by 29%, indicating that a higher price was paid during the DMK regime. Any further action on the matter should be decided by the government.”
He added that the new procurement price for tur dal procured under the TVK government would soon be reflected in the ration shop bills. “Consumers can compare the procurement prices every three months themselves,” the official said.
Despite repeated attempts, former DMK food minister R Sakkarapani could not be reached for his comments.
The special PDS was introduced by the late Chief Minister M Karunanidhi on April 14, 2007, with an objective to control the prices of essential commodities in the open market. Since then, one kg of dal and one litre of oil have been sold at `30 and `25, respectively.
The scheme requires an annual expenditure of around `5,600 crore to `6,000 crore. The government has been funding the scheme in recent years by availing loans from banks. According to the white paper released in June, the outstanding debt of the TNCSC stood at `27,181 crore as of March this year.
State govt would save `750 crore in a year
The TVK government had spent `467.34 crore to procure 60,000 tonnes of tur dal from July to September, while the DMK government, since July last year, had spent `654.9 crore every three months to procure dal of identical quantity, quality, and specification. If the TNCSC manages to buy at the same price for next 9 months, TN would save `750 crore
