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This is an archive article published on October 5, 2010

Probe finds PUNSEED,seed certification body guilty

The Punjab government has issued a chargesheet to the managing director of PUNSEED and the director of Punjab State Seed Certification Organisation on the basis of an inquiry into the wheat seed subsidy scam that surfaced last year.

The Punjab government has issued a chargesheet to the managing director of PUNSEED and the director of Punjab State Seed Certification Organisation on the basis of an inquiry into the wheat seed subsidy scam that surfaced last year. The chargesheet was issued on September 29,though the inquiry report was reportedly submitted by the financial commissioner director(FCD) to the chief minister on June 7,2010. The two officers have been told to reply to the chargesheet within 15 days.

The FCD has stated that PUNSEED and Punjab State Seed Certification Organisation extended favours worth Rs 85 lakh to private seed producers.

PUNSEED Managing Director Ranjit Singh,however,will once again be part of the procedure to call tenders for purchase of seeds from private producers for the coming Rabi season. Talking to The Indian Express,Singh said he was in the process of filing reply to the chargesheet. About the present tender process,he said: “I am one of the members of this committee and the MD of Punjab Agro is the chairman.”

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Mangal Singh,director of the seed certification organisation,too,said he would file his reply shortly.

According to the report,a copy of which is in possession of The Indian Express,the supply of seeds was done in plastic bags instead of jute bags but the rates were not reduced. In 2008-09,the report said,PUNSEED had reduced the prices of seeds being sold in plastic bags by Rs 20 as compared to the stock in jute bags,but in 2009-10,this was not done and hence the private companies were benefited.

Abohar MLA Sunil Jakhar had raised the issue of substandard wheat seeds supplied to farmers in the Assembly session in March this year,following which an inquiry was marked,the report of which was to be submitted within 25 days. Talking about the report,Jakhar said: “It is surprising that the officers were chargesheeted three and a half months after submission of the the report. But the tainted officer is once again calling the tenders,which shows the inquiry was mere an eyewash.”

Jakhar had also pointed out in the Assembly that instead of Rs 700 per quintal subsidy on seed,farmers were given subsidy worth Rs 500 per quintal. The FCD report,however,justified this by saying the seed was purchased by PUNSEED at Rs 1,650 per quintal and after all expenses the maximum retail price was fixed at Rs 1,750. After subsidy,it was sold at Rs 1,250 per quintal. Had the subsidy of Rs 700 per quintal been given,the price would have gone below the minimum support price of wheat and hence the agriculture director and the agriculture minister decided to fix Rs 500 as subsidy,says the report. Jakhar expressed dissatisfaction over the inquiry report and alleged that the CM shielded his officers.

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