![]() Financial Daily from THE HINDU group of publications Friday, May 03, 2002 |
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Agri-Biz & Commodities
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Foodgrains FCI officials put on alert to check diversion of rice Our Bureau
KAKINADA, May 2 RABI procurement is gathering momentum in Andhra Pradesh and till now it appears that farmers are getting the minimum support prices for different grades of paddy on the whole, unlike in the last rabi season when there was distress sale of paddy. However, it is alleged, procurement this season is marred by large-scale diversion of rice meant for the food-for-work programme towards levy in some coastal districts, especially the Godavari districts, Krishna, Guntur and Srikakulam. The arrest of three rice millers at Bhimavaram in West Godavari on charges of diversion of rice has perturbed the rice millers and there are demands from farmers' associations that tough action be initiated against errant millers in other districts too. The Food Corporation of India had to procure 35 lakh tonnes of rice this rabi season in the State 23 lakh tonnes of raw rice and 12 lakh tonnes of boiled rice. The two Godavari districts account for more than a million tonnes of the total quantity and there are allegations that rice meant for the FFW programme is being bought by some millers at cheap rates. The FCI releases the rice meant for the programme to be distributed to the workers, engaged mainly in roadworks, in rural areas. It is alleged that in some areas the works were being actually executed by contractors who were selling the rice to millers at cheap rates and the latter, in turn, are offering it to the FCI as levy. So, in effect, with the miller-contractor-official nexus, a kind of recycling of rice meant for the programme is taking place. In the bargain, not only the labour in the rural areas is cheated of its rightful due but the farmers are also suffering. The FCI officials have been put on alert to have a close look at the rice being offered by millers in view of these allegations and the vigilance wing of the State Civil Supplies Department has raided many ration shops and mill godowns and seized stocks of rice in different districts. But only in West Godavari have the millers been arrested. There are also allegations that millers are not paying the MSP for the common variety, known locally as `Bondalu' (MTU 3626), widely grown in the two Godavari districts during the rabi season. It is converted into boiled rice and offered to the FCI as levy. There is also demand for boiled rice from Andhra Pradesh in Kerala. However, it is said, there is a supply-demand mismatch and in view of the low levy targets for boiled rice, millers are unable (or unwilling) to pay the MSP. Mr Gopalakrishna Dwivedi, joint collector, East Godavari, has instructed the FCI district manager, to suspend taking boiled rice levy temporarily in view of these allegations. He has warned millers of stringent steps. The boiled levy target, of 1.75 lakh tonnes, in the district is sufficient for the millers to pay the MSP, he has added.
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