Wheat worth Rs 47 cr damaged; CAG raps PUNSUP, PAFCL

The CAG has rapped state-owned companies PUNSUP and PAFCL for the damage to 20,000 metric tonne of wheat, worth Rs 47 crore, due to non-compliance of storage instructions.

The CAG report on public sector undertakings (PSUs) for 2016-17 was today tabled in the ongoing Budget Session of the Punjab Assembly here.

Punjab State Civil Supplies Corporation Limited (PUNSUP) and Punjab Agro Foodgrains Corporation Limited (PAFCL) procure wheat for the central pool of the Government of India (GoI) on behalf of the Food Corporation of India (FCI).

"It is the responsibility of the companies to arrange for the safe storage of wheat procured and to maintain the health of the wheat stock till its delivery to FCI," said the Comptroller and Auditor General (CAG) of India report.

It said that as per instructions issued by the FCI, the damaged/non-issuable stock is required to be stored in a separate area to avoid the possibility of their infecting fresh stocks.

The scrutiny of records, April-May 2017, at Moga district offices of PUNSUP and PAFCL revealed that in violation of storage instructions, units stored fresh wheat of crop in 2014-15 in the same premises along with old stock. Hence, these were damaged or infested, the report said.

It said that as a result, the wheat of the crop year 2014-15 also got infected.

The FCI declared that in July-September 2016, 20,772 MT and 20,045 MT wheat stock of PUNSUP and PAFCL in Moga, respectively, as upgradeable.

However, the companies could upgrade and deliver only 13,116 MT and 7,190.50 MT (PUNSUP and PAFCL respectively) up to March 2017.

Out of balance stock, 7,411 MT stock valuing Rs 17.26 crore of PUNSUP and 12,798 MT valuing Rs 29.80 crore of PAFCL was declared (April 2017) as damaged by FCI, the report observed.

"Thus, storage of fresh wheat in same premises with damaged/infested stock, in contravention of extant storage guidelines/ instructions, resulted in damage of 20,209 MT of wheat stock valuing Rs 47.06 crore," it said.

The matter was referred to the companies and the Government, however their replies were awaited, as per report.