Hope Centre And State Will Resolve Dispute: High Court On Shortage Of FCI Godowns In Punjab For Storing Paddy

'Hope and expect that the Central Government as well as the State Government will sit on the same table and resolve the dispute as expeditiously as possible' said the Punjab & Haryana High Court on the issue with regard to the shortage of storage space in Punjab for paddy.

Reportedly, the lack of storage space in the FCI's godowns, and the arrival of the new paddy at mandis, has precipitated the crisis in the state. The farmers from October 13 have started protesting across Punjab, for non procurement of their paddy.

Chief Justice Sheel Nagu and Justice Anil Kshetarpal said, "This Court is of the considered view that the issue raised herein relates more to market forces and is dependent upon various variable factors, which change every day and essentially relates to policy decisions between Central Government and the State Government."

Sunpreet Singh, an advocate by profession, filed the PIL that highlighted the paddy being harvested by the farmers and that is being taken to Mandis for procurement by the government agencies but government agencies (Food Corporation of India) are not procuring the produce from the farmer.

"If the crop is not procured on time that will mean Farmers will not get payment of their crop on time and there will be then delay in repayment of the loan from formal and informal sources, which they had taken for crop and therefore there will further delay in getting loan cash credit for new crop which they have to sow. The delay will cause extra rate of interest for farmers who are back bone of the economy of the state," added the plea.

Previously AG Punjab Gurminder Singh submitted that Punjab is a Non-DCP (De-centralised Procurement) State as far as procurement of paddy is concerned, meaning thereby that the State is covered under the Centralized Procurement Scheme of the Government of India.

AG added the MOU entered between Punjab Government, Union and FCI stipulates that FCI will make necessary arrangements for smooth acceptance and takeover of the rice according to the requirements of the State. Further, whatever expenditure is incurred over procurement of foodgrains by the State Government, the same is to be reimbursed to the State by the Union through FCI.

The Court noted that ASG Satya Pal Jain assured that the periodical meetings on a regular basis would be held between the competent authorities of the Central Government and the State Government, and all efforts would be made to resolve the dynamic situation which has arisen in the State of Punjab, as regards procurement of paddy and movement of rice outside the State of Punjab.

Considering the submissions, the Court disposed of the plea.

Mr. Sunpreet Singh – Petitioner in person.

Mr. S.P. Jain, Addl. Solicitor General of India, with Mr. Rajiv Sharma, Senior Panel Counsel, UOI.

Mr. Sunish Bindlish, Advocate, for respondent No.3 – FCI.

Mr. Gurminder Singh, Advocate General, Punjab, with Mr. M.S. Longia, Addl. Advocate General, Punjab,

Mr. Saurav Khurana, Addl. Advocate General, Punjab, and Mr. Anurag Chopra, Addl. Advocate General, Punjab.

Title: Sunpreet Singh v. Union of India and others

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