CAG raps HSDC for causing extra expenditure on wheat seeds

Auditor CAG has rapped Haryana Seeds Development Corporation for incurring extra expenditure of Rs 2.95 crore in the purchase of wheat seeds from government agencies at a rate higher than the market rates.
In its latest report on Economic and Social Sectors, which was tabled in the ongoing Haryana Vidhan Sabha session here, CAG also pointed out that HSDC also failed to make timely arrangement of wheat seeds for farmers.
State-owned HSDC has mandate to produce, store and distribute certified seeds on commercial lines and carry on business as seed merchants to provide quality seeds at reasonable prices to farmers in Haryana.

The company produces seeds through seed production programme and processes the same in its plants for sale to farmers.
In case of deficit in production vis a vis market demand, the company procures seeds from the market which is either from other government agencies by inviting quotation or open tenders.
For sale in Rabi season 2010-11, the company proposed to produce 2.34 lakh quintals of wheat seeds. However, the State Seed Production Committee (SSPC) fixed (November 25, 2009) the target at 3.73 lakh quintals for the company, as per the report.

The Comptroller and Auditor General said the company neither provided production programme to farmers for increased quantity nor took immediate action for arrangement of increased quantity of seed.

After the start of sale of seed in Rabi 2010-11, the company approached (Oct 29, 2010) agriculture department to allow it to arrange one lakh quintal of wheat seeds from other state seed corporations and government agencies immediately to avoid any shortage of wheat seed, said the performance audit report which covered the working of the company during five years from April 2009 till March 2014.
In the meantime, the company invited quotations from other seed corporations and government agencies and after negotiations, the rate of National Agriculture Cooperative Marketing Federation of India Limited (NAFED) and National Cooperative Consumers Federation of India (NCCF) was found to be lowest at Rs 2,050 per quintal.