SAD gains ……………grains go missing!

Out of the 3,319 trucks that CAG had selected for random checking, it could not trace 3,232, while of the 87 traced, 15 had turned out to be scooters, motorcycles, and cars etc! 

Punjab Civil Supplies and Food Minister, Adarsh Prakash Singh Kairon, too traces his roots to the Badal family washed not only his hands but that of Punjab by stating, “The food purchase scheme is not a profitable proposition. Punjab is mainly doing it in the national interest.”

There is no color darker than black. The Shrimani Kali Dal –BJP combine government led by S. Parkash Singh Badal are nearing the end of their second term, and are embroiled in yet another controversy, this time of a different kind.

Punjab government had sought Rs 21,000 crore from the banks under the Cash Credit Limit (CCL) for procurement of wheat and has been persuading the Narendra Modi government at the Centre to get the funds released. With election in Punjab less than a year away, it cannot afford to irritate the farmers by delaying payment to them.

With none other than the Reserve Bank of India (RBI) claiming that grain stocks worth Rs 12,000 crore have gone missing in Punjab, the consortium of national banks, led by the State Bank of India (SBI), has held up funds, and all tall claims of Punjab government have come under scrutiny.

Since April1, about 10 lakh tons of wheat has been procured for which no payment has been made to the farmers,though the rules make it mandatory that the state and central agencies must clear the payments within 48 hours of procurement. The revelation by RBI and the subsequent reaction of the banks lead to weird and unexpected response from various quarters as they were caught unaware. Officials of Punjab government claimed that it’s not about pilferage of stocks, but an issue of accounts. Officials of the Food Corporation of India (FCI) that is under the control of the central government were soon to wash their hands off, and claimed that FCI was only involved in procurement and the state government was the custodian of the stocks. By holding the state government responsible, the FCI perhaps seconded the theory of pilferage. The Comptroller and Auditor General (CAG) and the Reserve Bank of India (RBI) too have concluded in their reports that it is a case of misappropriating central funds and diverting stock. Congress have filed a complaint against Punjab Chief Minister ParkashS ingh Badal with Punjab police based on the findings of the report; that mentions that state procurement agencies — Punjab State Warehousing Corporation, Punjab Agro Food Corporation, Pungrain(Punjab Grain and Procurement Corporation) and Punsup (Punjab State Civil supplies Corporation) — had not provided CAG with the registration numbers of all the vehicles that hauled food grains. Out of the 3,319 trucks that CAG had selected for random checking, it could not trace 3,232, while of the 87 traced, 15 had turned out to be scooters, motorcycles, and cars etc!

Ideally, the value of physical food stocks in the go downs should match with the money Centre pumps in through the banks for procurement of food. But there exists a huge gap between the existing stocks and the money shown to have been spent on procurement. Banks are worried and have expressed concern that similar situations could erupt in other states. The common concern in Punjab is that if the Badal government has failed to repay the loan taken from banks to purchase the missing stock, how it will pay the farmers for their wheat crop, the procurement for which is now being undertaken. None of the leaders have come to extend support to the farmers and no assurance has been given to them. There can’t be a worst situation for a state which is the food bowls of India providing 114 lakh tons of wheat annually to the central pool. It puts a question mark on the ability of the Akali–BJP government to procure, maintain the wheat crop, and their ability to manage the finances of the state. Punjab Civil Supplies and Food Minister, Adarsh Prakash Singh Kairon, too traces his roots to the Badal family washed not only his hands but that of Punjab by stating, “The food purchase scheme is not a profitable proposition. Punjab is mainly doing it in the national interest.”

Calls for a judicial probe are increasing. Banks are claiming that loans to states are sovereign in nature and therefore there is no question of default and, thus, there is no need for provisions. With RBI not ready to buy this argument, calls for a judicial probe are increasing.  RBI’s point that when the previous receivables are doubtful, the banks must provide for these loans. RBI’s tough stand has been strengthened by FCI officials who are disputing Punjab government’s plea that the grains procured were siphoned or were lower than the billed amount.

So what has brought Punjab to such a condition? Or should we say, where has the 10 years rule of SAD-BJP combine taken Punjab to? These revelations have only proved that Punjab has been reeling under bad government. A government that has been more interested in filling the coffers of its party leaders, than doing an iota of work for the people of the state.