Foodgrain fund cut: Odisha seeks Rs 14,000 crore pending subsidy from central govt

“As per agreement, there has to be zero financial liability on the procuring agencies with regard to permissible items of cost to be borne by Govt. of India. The anticipated cost is required to be released in the form of advance subsidy at the rate of 90% of admissible claim on quantity basis in the first month of every quarter,” said Nayak in his letter.

Stating that the state government shall be paid quarterly provisional subsidy after deduction of advance amount, the Odisha food minister said release of advance and provisional subsidy to Odisha is highly “irregular”.

As certificate of replacement of beyond rejection limit (BRL) rice stock by millers and certification by department of food and public distribution (DFPD) officials under food ministry is a mandatory exercise for release of subsidy by the Centre, Nayak said inspection by DFPD officials was being abnormally delayed. “It hinders receipt of subsidy in respect of BRL rice stock,” Nayak noted.

Meanwhile, the Naveen Patnaik-led party also alleged that cutting foodgrain procurement fund in the Budget will affect paddy procurement in Odisha.

“This will severely affect the farmers of Odisha, especially from western part of the state, and deeply impact their livelihood. This also proves that the Centre will also not increase the MSP of paddy to Rs 2,930 per quintal as passed in a unanimous resolution in the Odisha assembly in March 2017,” said BJD spokesperson Prasanna Acharya at a news conference in Bargarh.

Acharya also alleged that the Centre has slashed the foodgrain procurement target of Odisha. From 18 lakh metric tonne (MT) rice, which used to be lifted from Odisha by the Food Corporation of India (FCI) annually, has now been reduced by 80 per cent to 4 lakh MT for 2022-23.

“Bargarh alone produces 4 lakh MT rice. What will happen to the remaining 29 districts of Odisha? Where will farmers of those 29 districts sell their paddy? The Centre is completely silent about it,” Acharya said.

The senior BJD leader also slammed the BJP MPs and the Union ministers from Odisha for not raising the issue in Parliament.

In his counter, BJP’s state unit kisan morcha president Pradip Purohit said the BJD leaders are making baseless allegations to cover up the irregularities in paddy procurement process in the state. Purohit said Odisha farmers are forced to go for distress sale of paddy as the state government is unable to procure produce at MSP rate.