Shillong, June 15: Beneficiaries of the public distribution system (PDS) in Meghalaya have not received sugar since January this year and the state government is uncertain whether it can compensate for the months when sugar was not distributed.

After the Centre stopped the system of levying sugar in 2014, Meghalaya and other states in the country were asked to procure PDS sugar from open markets and were instructed to select the supplier by floating a tender.

Earlier the Meghalaya government had appointed Kendriya Bhandar, which had quoted Rs 43,270 per metric tonne, to supply PDS #sugar to the state.

Meghalaya's requirement for PDS sugar is 1,704 metric tonnes per month.

When Kendriya Bhandar was the supplier, the price of 1kg PDS sugar in Meghalaya was Rs 44.27. The total price includes Rs 18.50 central subsidy, Rs 5.77 state subsidy and a consumers' share of Rs 20. The sugar was distributed at 3kg per ration card.

"The PDS sugar being distributed this month (June) to the beneficiaries was for the month of December last year. The state has not received PDS sugar since January this year as the state government is in the process of selecting a fresh supplier," Meghalaya principal secretary (food and civil supplies) P.W. Ingty told The Telegraph here today.

Ingty said Kendriya Bhandar had supplied PDS sugar to the state only till December last year. Asked if the government would compensate for the months when sugar was not distributed (since January this year), Ingty said the state government would approach the Centre to assist with some subsidy to the state so that sugar may be distributed to the beneficiaries for such months.

Ingty said fresh tender was invited in March this year to get a new supplier. Of the six firms that participated, the tendering committee found three eligible firms - Beta Edible Processing Private Limited (quoted Rs 54,270 per metric tonne), S.S. Food Industries (Rs 55,050 per metric tonne) and Dr Frozen Foods Indian Private Limited (Rs 56,210 per metric tonne).

According to Ingty, while the government was in the process of selecting the supplier, one of the disqualified firms - Garden Courts Distilleries Private Limited - went to the court on this issue and Meghalaya High Court had recently passed a stay order prohibiting the government from going ahead with the allotment of work.

Yesterday, Meghalaya High Court has directed the petitioner to file a rejoinder affidavit within a week and listed the matter for hearing after one week.

However on June 13, the Opposition, National People's Party (NPP), has demanded a CBI probe into the alleged anomalies in the tendering process. The party also alleged "favouritism" by the Congress-led government while selecting the supplier for PDS sugar in the state and asked the state food and civil supplies minister Clement Marak to step down.

NPP legislator and party spokesman James K. Sangma said Beta Edibles Processing Private Limited was selected though the rate quoted for supply of sugar was high, where the state government had to shell out more at Rs 16.77 per kg. Questioning the move, James pointed out that when the state government's tender was floated in September 2015, the bidders, Garden Court Distilleries Private Limited, had quoted Rs 44,351 per metric tonne, Beta Edible Processing Private Limited quoted Rs 44,440, S.S. Food Industries quoted Rs 44,570 and Dr Frozen Foods Indian Private Limited quoted Rs 45,610.

"Instead of selecting the first and the lowest bidder - Garden Court Distilleries Private Limited - the state government cancelled the tendering process on the ground that the rates received for the supply of sugar were higher, after which, a three-month extension was given to Kendriya Bhandar to supply sugar at Rs 43,270 per metric tonne,"? James said.

James said the action of the state government clearly suggested that it was bent on allotting the work to "preferred party" at the cost of the state exchequer and made the people suffer.

Asked if Beta Edible Processing Private Limited has been chosen to supply PDS sugar, Ingty said, "Though, from among the three firms, Beta Edibles Processing Private Limited has quoted the lowest rate, the government has not decided to allot the work to this firm," he said.

Ingty said any firm selected by the government to be the supplier should bear all costs, which include cost for transporting sugar to go-downs in the districts of the state, handling and cost of packaging of 1kg sugar in polybags along with state PDS logo.

The official said since the matter is in court, the government would wait for a final order from the court in this regard.