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LATEST NEWS UPDATES | Centre's Opaque Auction Rules for Pulses Helped Millers Profit at Expense of Government -Shreegireesh Jalihal and Nitin Sethi

Centre's Opaque Auction Rules for Pulses Helped Millers Profit at Expense of Government -Shreegireesh Jalihal and Nitin Sethi

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published Published on Dec 15, 2021   modified Modified on Dec 15, 2021

-TheWire.in

The auctions let millers earn a bloated revenue of at least Rs 4,600 crore in four years from milling over 5.4 lakh tonnes of raw pulses, hammering government coffers and possibly the quality of daal, show documents.

New Delhi: The Narendra Modi government allowed millers to fatten themselves on tonnes of pulses meant for the poor by turning an auction procedure on its head.

The Reporters’ Collective’s examination of auction archives shows that Nafed – the government’s procurement agency that picks millers to process raw pulses for welfare schemes – has held over a thousand auctions since 2018 without setting a base rate or floor that jump-starts any auction and a fail-safe switch to prevent millers from hiding profit.

The auctions let millers earn a handsome revenue of at least Rs 4,600 crore in four years from milling over 5.4 lakh tonnes of raw pulses, hammering government coffers and possibly the quality of the daal, show documents in the public domain and accessed through queries filed under the Right to Information (RTI) Act.

The pulses were for beneficiaries of welfare schemes across the country and the defence services.

The stink from the rotten auction process rose up when states complained to the Union government about the bad quality of processed daal provided as part of Pradhan Mantri Garib Kalyan Yojana (PMGKAY) during the COVID-19 lockdown. Some states rejected the processed pulses as they were not fit for consumption.

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TheWire.in, 15 December, 2021, https://thewire.in/economy/centres-opaque-auction-rules-for-pulses-helped-millers-profit-at-expense-of-government


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