A pilot project to store food grain falters in Punjab

This, even as the Punjab Vigilance Bureau received a complaint last year alleging that wooden crates supplied by a private player after competitive bidding did not meet specifications.

The crates are used to store wheat procured during the rabi market season. As per a food and civil supplies department official, as many as 3,200 to 3,400 bags of 50 kg each are stored over a layer of 34 to 36 wooden crates placed on the ground.

As part of the pilot project, where PSFDC was picked over private players, 1,250 crates each were to be supplied to Pungrain, Punsup, Markfed and Punjab State Warehousing Corporation but only Pungrain and Punsup were supplied the crates.

Information with The Indian Express has revealed that it all began on December 14 last year when the director of Pungrain and the food, civil supplies and consumer affairs department wrote to the PSFDC managing director-cum-principal chief conservator of forests, Punjab. The former pointed out, “During the last five years, wooden crates have been purchased through e-tenders invited online on the e-procurement portal of Government of Punjab of wooden crates having valid license of saw mill” and that state government “intends to procure wooden crates from the PSDFC, instead of private players, for storage of wheat to be procured during RMS (read Rabi Market Season) 2023-24, which is scheduled to commence w.e.f. 01-04-2023.”

On February 13, the food and civil supplies department wrote to PSFDC conveying its approval to procure 5,000 wooden crates “on pilot basis” at the rate of Rs 1,155 per crate ex-depot, plus 12 per cent GST, and supply the same by April 1 as per laid-down specifications. But, only Pungrain and Punsup purchased 625 crates each for the season.

As an explanation, Punjab Food and Civil Supplies Department Joint Director Anjuman Bhaskar said there was not much requirement for wooden crates this rabi season due to an “increase in wheat exports due to Ukrainian crisis where Russia and Ukraine were locked in a war; unprecedented movement of grains under the Prime Minister Garib Kalyan Ann Yojna; and heat wave taking toll on wheat yield across the country.”

Bhaskar said the “huge movement” of the grain and the “lesser yield” left “relatively very lesser opening stocks” and hence “lesser requirements of wooden crates”. “But, even then, we went for the pilot project and purchased 625 such crates for Pungrain and Punsup,” said Bhaskar.

She also added that PSFDC needs to “enhance its production capacity” for a “normal year” and offer “competitive pricing”. Bhaskar said that in competitive bidding, the wooden crates were available for “less than Rs 500” as compared to “over Rs 1,200” being offered by the PSFDC.

She said the “quality appeared good”, but anything conclusive could be said only after usage. She added that if the quality is sustained, it would be good to go for a state government agency instead of private players, “but if one child of the government ends up facing a loss over the other, it is not a good idea”.

On the Vigilance Bureau probe, Bhaskar said, “Our officials told [the Vigilance Bureau] that crates tend to lose weight due to open storage and there is depreciation. We will have to assess the crates provided by the PSFDC for these things as we use them.”

PSFDC Chief General Manager M Geethanjali said, “We did not want to start production before receiving payments, for we already have pending payments of earlier years and audit paras are pending regarding that. Since tree felling started in March, we have done our best to supply by April.”

She further said, “We have started sawmill and production after many years so it takes time to stabilise. Orders were given in mid-February and advance payments were given in March after which we started the tree felling and crate manufacture.”

Geethanjali added, “In future, if we get our orders and advance payments on time, we will ensure timely supply.”

Geethanjali further said, “The crates provided by us would have a shelf life of more than 10 years as compared to crates they used to get from private players which had a shelf life of probably two years. More wood and better quality definitely come with more price. They used to have around 20 kg crates, we are providing them with 50 kg crates.”