PUNSUP suffers loss due to poor preservation of wheat: CAG

Poor preservation and maintenance of wheat stock resulted in loss of Rs 93.29 crore to Punjab State Civil Supplies Corporation Limited, the CAG said.
Besides, lack of a system for monitoring of timely raising of bills resulted in delayed claims and consequential loss of interest of Rs 8.94 crore, the CAG report tabled in Punjab Assembly yesterday noted.
Punjab State Civil Supplies Corporation Limited, popularly known as PUNSUP, procures wheat from central pool of the Union government on behalf of Food Corporation of India (FCI).
The audit observed in March 2015, that Muktsar district office of the company had stored 1,60,785 MTs wheat in crop year 2011-12 at its various locations.

"Out of this, FCI declared (April 2012) that 81,978 MTs of wheat had deteriorated due to poor maintenance and preservation," the CAG said.
FCI intimated the PUNSUP's head office and district office regarding poor maintenance of wheat stocks and requested for its timely upgradation, the CAG said.

In spite of extensions allowed by FCI up to December 2013 for upgradation of wheat, the company could offer only 19,863 MTs out of which FCI accepted 9,133 MTs.
"The balanced wheat stock of 72,845 MTs valuing of Rs 149.60 crore was declared as damaged by the FCI," the CAG said.
Centre's guidelines had directed that the damaged wheat stock was to be disposed off within a maximum period of six months from the date of declaration of stocks as damaged.

"Though the wheat stock of 72,845 MTs was declared as damaged in August/September 2014, the company could dispose off only 15,843 MTs of damaged wheat," the CAG noted.
During disposal of wheat a further shortage of 3,116 MTs valuing Rs 6.40 crore was detected. The company realised Rs 10.27 crore from disposal of balance 12,727 MT wheat against Rs 26.13 crore being the value of 12,727 MTs resulting in a loss of Rs 15.86 crore.
"At this proportion of loss on 12,727 MTs, the projected loss on entire damaged quantity of 69,729 MTs worked out to Rs 86.89 crore," the CAG said.

Test check of records of the district office Amritsar revealed that during April 2009 to March 2013, the district office delivered 1,09,554 MTs of wheat.
The PUNSUP was required to lodge the claim of differential cost with FCI amounting to Rs 18.59 crore and Rs 4.18 crore towards bonus on wheat procured for the central pool immediately after delivery of foodgrains.
However, the claims were lodged with FCI during December 2013 and January 2014 after a delay of 54 months and nine months respectively.
"Delayed raising of bills by district office resulted in delay in receiving claims and consequential loss of interest of Rs 8.94 crore to the company,"the CAG said.