3rd September, 2002
Ministry of Consumer Affairs, Food & Public Distribution  


DISPOSAL OF PADDY BY STATE GOVERNMENTS

ONLY TENDERS ABOVE RS. 450/- QUINTAL TO BE CONSIDERED


The Food Ministry has rejected all tenders for disposal of paddy procured by State Governments of Chhattisgarh, Madhya Pradesh and Maharastra quoting below Rs. 450/- per quintal. Only bids of Rs. 450/- per quintal or higher rates have been accepted keeping in view the minimum support prices for paddy during the kharif marketing season 2001-02 and the prevailing market prices. A time limit of 14 days to deposit the money has been given both to the successful bidders as well as other parties willing to lift the stocks at Rs.450 per quintal.

The State Government of Chhattisgarh had invited tenders for the disposal of paddy procured by it. The rates received in response to the tenders were less than Rs.378 per quintal in respect of 2.09 lakh tonnes, the rates were between Rs.378 and Rs.450 per quintal for 65,734 tonnes and the rates were more than Rs.450 per quintal for 7915 MTs.

If the tenders below Rs.450 per quintal had been accepted, the loss incurred would have been approximately Rs.69 crore.

The State Government has been directed to have the unlifted quantity of paddy milled immediately into raw rice and issue the resultant rice under TPDS and other Welfare Schemes. In the interest of consumers, the State Government has also been informed that half value cut would be imposed on all resultant raw rice where the broken percentage is in excess of 30%.

The State Governments of Madhya Pradesh and Maharashtra have also been directed to accept tenders of above Rs.450 per quintal for disposal of the procured paddy stock. These State Governments have been asked to convert the unlifted paddy into rice. The quantity of paddy available for disposal in Madhya Pradesh is 1.68 lakh tonnes, while the quantity of paddy available in Maharashtra is 85,509 tonnes.