State urges Centre to release Rs 1.8,000 crore food subsidy

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The State Government has urged the Centre to release the quarterly food subsidy claims amounting to Rs 1,851.11 crore in respect of custom-milled rice procured by the Odisha State Civil Supplies Corporation (OSCSC) limited under PD scheme.

Food Civil Supplies and Consumer Welfare Principal Secretary Pradipta Kumar Mohapatra in a letter to Union Consumer Affairs, Food and Public Distribution Secretary Vrinda Swarup, stated that the Central subsidy which is distributed to beneficiaries under Public Distribution Scheme/National Food Security Act in the State is critically important to the finances of the OSCSC.

The letter stated that while provisional subsidy claim bill for the period from April 2015 to March 2016 for Rs 1,723.34 crore was submitted to the Central Government, an amount of only Rs 300 crore was released. There is a backlog of Rs 1,423.24 crore for release by the Union Government since last three months. Besides, an advance subsidy bill for the quarter ending June 30 was submitted by the OSCSC for Rs 911.34 crore. Against this, Rs 712.77 crore was found admissible by the Centre for release to the OSCSC.

However, only Rs 285 crore was released against Rs 712.77 crore admitted by the Union Government, said the letter.

It added that the OSCSC, till date, has procured paddy from farmers in the State equivalent to about 32.23 lakh MT CMR valued at Rs 8,908 crore in the current Kharif marketing season.

“But due to non-release of subsidy there is an acute paucity of funds to release towards the Minimum Support Price (MSP) cost for farmers,” the letter stated.

The Principal Secretary requested the Centre to immediately release provisional subsidy of Rs 1,423.34 crore up to March and balance advance subsidy for June 2016 quarter for Rs 427.77 crore to the OSCSC for payment of pending paddy cost to farmers and for smooth continuance of Decentralised Procurement Operations in the State.

Mohapatra stated that he would visit New Delhi in the second week of July to hold discussions with Swarup regarding the State Government’s demand.

Daily Pioneer
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