High Court Seeks Response From Union Govt On Alleged Shortage Of Storage In FCI Godown For Storing Paddy In Punjab

The Punjab & Haryana High Court sought response of Union Government on plea filed seeking directions to lift paddy from FCI storage facility and create space for milled rice for Kharif Marketing Season 2024-2025 in Punjab.

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 directed ASG Satya Pal Jain appearing for Union, “to seek instructions and file reply essentially on two aspects i.e. availability of space for storage of rice and testing of hybrid paddy variety for outturn ratio.”

In pursuance of Court's previous directions the Punjab Government and Food Corporation of India submitted status report today. 

The reply filed by Punjab Government stated that the rice millers have two apprehensions:

First is Availability of space in the godowns for delivery of rice to FCI and secondly regarding the out-turn ratio of hybrid variety of paddy is comparatively lower than that of other varieties.

“The Millers are mandated to deliver 67 Kg rice against 100 Kg paddy, whereas they apprehend that in case of hybrid variety, this is around 62 Kg so they may incur losses,” it added.

AG Punjab Gurminder Singh submitted in the Court that the Puniab 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.

As per the Tripartite MOU of FCI, Punjab (Non-DCP) State and Govt of India for procurement of paddy and delivery of Custom Milled Rice for KMS 2019-20 onwards signed in 2021 by the FCI, GOP and GOI, , the Punjab Government undertakes procurement of paddy on behalf of the Govt of India for contribution of resultant rice to the Central pool, he added.

AG added that the MOU also 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 GOI through FCI. 

In the reply filed by the State, it was stated that, "as part of the storage arrangements, the Department of Food & Public Distribution, Govt of India vide its letter dated 27.09.2024...has assured to create 40 LMT storage space by 31st December 2024 and 90 LMT by 31st March 2025 by moving food grains out of the covered godowns. It is further submitted that approx. 48 LMT wheat stocks are presently stored in covered godowns."

Punjab Government has requested FCI to move such wheat stocks from covered godowns also so that these godowns can also be used for storage of rice, it added.

Sunpreet Singh, an advocate by profession, filed the PIL that highlighting the paddy being harvested by the farmers and that is being taken to Mandis for procurement by the government agencies but government agencies 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.

The matter is listed for October 29, for further.

Mr. Sunpreet Singh-petitioner in person.

Mr. S.P.Jain, Addl. Solicitor General of India with Mr. Dheeraj Jain, Senior Panel Counsel for respondent-UOI.

Mr. Sunish Bindlish, Advocate, for respondent-FCI.

Mr. Gurminder Singh, Advocate General, Punjab with Mr. J.S.Gill, Addl. Advocate General, Punjab and Mr. Saurav Khurana, Addl. Advocate General, Punjab.

Title: Sunpreet Singh v. UOI & Ors.