Rs 20,000-cr central dues cloud Punjab grain procurement

Punjab spends an average Rs 40,000 crore a year on the procurement of rice and wheat, the highest by any state on food procurement in the country

Food procurement for the central pool in Punjab has come under the shadow of Rs 20,000-crore unpaid dues by the Union government.

An official in the Punjab government's food department said a Rs 20,000 crore claim of reimbursement for procuring grain for the public distribution system was pending with the Centre.

"The state government has been holding discussions with the Union ministry of consumer affairs. Our claims are genuine and the ministry has given us positive indications," the official added.

Punjab contributes approximately 14 million tonnes of rice and 11 million tonnes of wheat a year to the central grain pool.

The state spends an average Rs 40,000 crore a year on the procurement of rice and wheat, the highest by any state on food procurement in the country. The next is Haryana and the value of food procured there is half of that of Punjab.

Sources in the Food Corporation of India said a provisional cost sheet was sent by state governments to the Union ministry of consumer affairs at the start of the procurement season. An annual audited account sheet is generated after procurement and submitted to the Centre.

The Punjab and Union governments have had differing views on expenses incurred on transportation of grain, labour and packaging. This has resulted in delayed payments.

The FCI sources said the Centre might not accept Punjab's claims.

Sources in the Reserve Bank of India confirmed a delay in receivables on account of reimbursement to Punjab from the Centre.

The Punjab food department official said, "We are not aware of any communication between the RBI and banks," he said. State Bank of India executives were not available for comment.