CNCCI calls for investigation into PDS schemes in Nagaland

DIMAPUR — The Confederation of Nagaland Chamber of Commerce and Industry (CNCCI) has raised concerns over the distribution and handling of rice meant for Priority Households (PHH) in Nagaland and the alleged lack of transparency in the tendering process for various government schemes.

In a press release issued on Wednesday, the CNCCI stated that many Priority Households (PHH) rice transporters have not been allocated rice for October 2022, despite the money being deposited to the Food and Civil Supplies (FCS) department.

Citing a letter of query to the department, it said that the department “misinformed the CNCCI that the beneficiaries have received their due allotment and at the same time, contradicting itself by stating that the money has been refunded to the transporters,” it said, while claiming to have “sufficient proof that the transporter has not received the money from the department.”

Calling for the CBI to initiate an investigation, the CNCCI expressed doubts about the integrity of the distribution system, and stated that the “rice meant for the poor section of our state may have found its way to rice polishing and repackaging units and then to the retail market.”

To substantiate its claim, the CNCCI pointed out that the import of rice in the state has gone down drastically while the consumption of rice has increased as per retail and wholesale market. And despite the dwindling import and low production of rice in the state, retailers and wholesalers get rice at cheaper rates in Dimapur through few rice mill owners who polish rice and from traders engaged in repackaging rice, as compared to rice imported from outside the state.

“This has led to almost monopoly state of rice market which is against the principles of the CNCCI and the business community of Nagaland,” it asserted.

The CNCCI also raised concerns over the possibility that poor beneficiaries may be forced to purchase their own subsidised rice from the market at higher prices due to unethical practices within the rice distribution system.

It stated that selling PDS rice in the market is illegal and warned that any business establishments found selling, polishing, or packaging PDS rice would not be spared and stringent action would be taken against them.

Furthermore, the CNCCI directed that all district chambers of commerce remain vigilant against unethical practices.

 Meanwhile, the CNCCI questioned the FCS department as to why the tendering process to appoint transporters for the PHH, Antyodaya Anna Yojana (AAY) and tide-over scheme (TPDS), have been inconsistent and non-transparent.

Claiming that the FCS has initiated open tender process only for the PHH, while the lesser known AAY and TPDS schemes have never undergone open tendering process, the CNCCI asked the department to call off the PHH tendering process and start simultaneous tendering process for all three schemes to ensure fairness and transparency.