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Centre-State row over paddy procurement deepens

By Our Special CorrespondentHYDERABAD, DEC. 20. The controversy over paddy procurement took a turn on Wednesday with the Civil Supplies Minister, Dr N. Janardhan Reddy, lambasting the Union Food and Consumer Affairs Minister, Mr Shanta Kumar, for his ``irresponsible statement'' blaming the State Government for buying only 900 tonnes of paddy so far while FCI achieved up to 11,000 tonnes.

The Minister, who met Mr. Shanta Kumar in Delhi only the other day along with the Agriculture Minister, Mr V. Sobhanadreswara Rao, said it was ``improper on the part of the Union Minister to react on a sensitive issue and when farmers are in distress.'' He also advised politicians in the State, especially Dr Y. S. Rajasekhara Reddy and Mr K. Rosaiah of the Congress not to use the issue for political gain.

At a press conference, Dr. Reddy explained that State Government purchasing agencies -- Civil Supplies Corporation and MARKFED -- were novices in procurement, lacking the paraphernalia, including the required staff to assess quality of the produce, compared to FCI which was a seasoned organisation and was able to buy one crore tonnes in 26 days in Punjab recently. More over, the State Government agencies began buying only a week ago with the situation becoming ``compelling'' while the activity by FCI was launched from October 1 itself. It was but natural that such difference would exist in the quantum procured under the circumstances, he contended.

A fresh ``bone of contention'' mentioned by the Minister was that the FCI had issued order for payment of "A" grade price for Swarna Masoori variety but without making clear whether this type of paddy should be treated as "A" grade in the first place. The order was also ambiguous on whether rice of this variety could also be considered "A" grade and accordingly, paid price allowed on that variety. On the Government's behalf, the Civil Supplies Commissioner, Mr H. S. Brahma, addressed a letter to the Union Minister, seeking a comprehensive GO clarifying these aspects. The "A" grade, however, was confirmed for MTU 1001, 2067 and 2716 varieties.

A positive development today on the front was that the Reserve Bank of India sanctioned a ``credit facility'' of Rs 120 crores to the State Government, enabling its agencies to carry on the procurement while the number of purchasing centres by the Civil Supplies Corporation was increased to 64 from the existing 33 and district Collectors were authorised to open such centres either under the corporation or MARKFED. These are in addition to the 163 such centres already opened by the FCI. MARKFED which was busy till yesterday with maize, entered the scene today by opening nine centres. In Krishna, Guntur, East and West Godavari districts which, in fact, form the rice granary but yet lack marketyards, millers have also been asked to do the needful.

The Civil Supplies Minister appealed to farmers to dry and clean paddy to ensure "fair average quality" for their produce and demand MSP. Instances of refusal to pay MSP even when FAQ was maintained, could be reported to the Government enabling it to launch action against the guilty. Steps were also launched at marketyards to convert inferior paddy into FAQ if the produce was found having more percentage of admixture. Likewise, 702 bags were dried up, accepted and paid MSP in Mahabubnagar district today.

Dr Reddy said it was decided to procure 2.5 lakh tonnes of paddy by month-end. The achievement so far was 2,710 tonnes by Civil Supplies Corporation, and 12,779 tonnes by FCI. In each district, a supervisory committee with Joint Collector serving as nodal officer was formed to monitor the situation. Ministers and MLAs were asked to facilitate the entire process. A campaign was being undertaken with ads, leaflets and posters to educate farmers on dos and don'ts to get what was due to them.

Regarding rice procurement, Dr Reddy said, procurement was made to the extent of 4.8 lakh tonnes by FCI against 10 lakh tonnes fixed for December. The FCI was also asked to shift at least five lakh tonnes to other States. While FCI had a godown space of 22 lakh tonnes, the AP Government offered State Warehousing Corporation's space to the extent of five lakh tonnes.

The Minister asked the FCI management to depute one executive director and four senior regional managers to the State to ensure smooth and effective procurement. As shortage of gunny sacks was reported by FCI, a wagonload of them was being mobilised from Calcutta.

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