Around 411,810 tonnes of wheat and rice were wasted as transit and pilferage losses in the past four years, a Standing Committee report on food, consumer affairs and public distribution, tabled in Parliament earlier this month, revealed.
The report also highlighted that the loss of foodgrains led to an estimated Rs1,109.82 crore in the past four years, till October 2020, and subsidised commodities were enough to feed 82.3 million people if distributed properly. The Centre provides around 5kg of wheat of rice at subsidised rates under its Pradhan Mantri Garib Kalyan Anna Yojana.
“The government should take significant steps to mitigate transit and storage losses and save taxpayers’ money,” the committee stated in its report.
The report also showcased the condition of the country’s food storage and transit infrastructure, as well as the decentralised procurement scheme (DCP).
Under the DCP, the states procure, store and distribute foodgrains themselves under the Centre’s targeted public distribution system (TPDS) and other welfare schemes. The decentralised system of procurement has the objectives to ensure that Minimum Support Price (MSP) is passed on to the farmers, to enhance the efficiency of procurement and to encourage procurement in non-traditional states, thereby extending the benefits of MSP to local farmers as well as to save on transit losses and costs.
The Standing Committee report shows that so far only 23 states have implemented it – 15 to procure rice and eight to procure wheat – despite the scheme being in place for the past 23 years.
The Parliament panel raised questions on the actions taken against the officials responsible for the transit losses. It found out that around 153 cases were filed in 2018-19 while 144 were lodged in 2019-20 and 44 in 2020-21 (till September 2020). Of these, 18 cases of unjustifiable losses are still pending while a total of 89 cases of storage losses registered till September 2020 are pending.
Reacting to the findings, the Standing Committee suggested the Food Security of India (FSI) come up with new standards, guidelines and checklists to mitigate the transit and pilferage losses of foodgrains and make officials and workers more aware. Moreover, it asked for a framework to deal with pending cases of corruption, excise duty and related matters against the officials.
Meanwhile, the Union ministry of consumer affairs, food and public distribution responded to the report in Parliament to say that it has taken several steps to check corruption in FCI godowns.
“Farmers are now provided with the MSP online while the agencies are paid through an online system. The quality-related parameters of cereals are put up on public domain,” Union minister Piyush Goyal said, adding, “Procurement process is being inspected regularly and action taken against those who are found guilty of adulteration. The produce is tagged at every step of the process – from the mills to depot.”
Several steps have also been taken to monitor the distribution including regulating selling in the open market by limiting it through a modulated e-auction, Down To Earth reported quoting the ministry. “CCTV cameras are also installed in all the godowns. In addition, committees have been formed to redress the grievances of the contractors.”
However, despite measures taken by the Centre, losses to the tune of Rs 280.94 crore was incurred due to transit wastage in 2020-21 (till October 2020), the committee said.