Haryana loses rev due to crop diversion

Haryana is losing substantial revenue on account of market fee incurred on the crops diverted by the farmers to other states.

This was corroborated in the annual Comptroller and Auditor General (CAG) report that the difference between the production and arrival of agri-produce in mandis increased from 25.5 per cent in 2005-06 to 31.6 per cent during 2008-09.

The shortfall in the arrival of the crops was due to it being diverted to open market as the rates there were higher than the Minimum Support Price (MSP) offered by the government.

The sources in the Accountant General’s office said the reply of the Agriculture Marketing Board in this regard was not based on any survey. It said PAPM (Punjab Agriculture Produce Marketing Act) did not restrict any farmer from selling produce outside the state or anywhere in India.

But the CAG report says, “As the variations between production and arrival were significant, the board should have examined the issue in depth and take corrective action to ensure realisation of market fee of the entire quantity of agriculture produce for the concerned years.

The report also finds discrepancies in the estimation of market fee. It says, “The estimates of market fee were to be prepared with reference to production of crops of the previous years. However, these were prepared on the basis of fees realised in the previous years.”

An amendment in the PAPM Act could be brought to check the leakages of grains, said an official. The other anomalies noticed by the CAG in Haryana Agriculture Marketing Board were non-recovery of outstanding plot installments of Rs 15 crore, 410 plots worth Rs 36.5 crore remained unsold, agri business information centres were set up in two districts against the target of 21 districts by March 2008 and liquidated damages of Rs 10.3 crore for delays in works were not recovered from contractors.