Amma Canteen used wheat meant for PDS

According to a CAG audit report released on Monday, the Tamil Nadu Civil Supplies Corporation (TNCSC) had diverted 4,596.883 metric tons of wheat procured under PDS (public distribution system) to Amma Unavagam in Corporation of Chennai to prepare chapatis.

The report, which was tabled in the State Assembly on Monday, has concluded that TNCSC had earned an unjustified profit of Rs 5.97 crore by diverting PDS wheat received from the Centre to the Corporation for production and sale of chapatis in Amma Unavagams. This is in violation of the Centre’s August 2001 order which barred diversion of central allocation meant for distribution under PDS.

The report also noted that TNCSC had supplied 5,096.883 metric tons of wheat to Amma Unavagam from September 2013 to June 2017. The value of the wheat was Rs 8.85 crore, according to its price (Rs 17.25/Rs 18.10 per kg) at the open market.

Of the total supply, about 500MT was supplied from wheat received from FCI (food corporation of India) at open market rate of Rs 17.25 per kg, while the remaining 4,596.883 MT of wheat used was obtained from TNCSC from FCI under PDS. This included the 3,108 MT of wheat which was meant for families below poverty line families for whom the Centre supplies rice to the state at Rs 4.15 per kg.

From this move, TNCSC had made a profit of Rs 5.97 crore. They sold wheat they bought for Rs 2 to Rs 6.10 per kg to the Corporation for Rs 17.24 to 18.10 per kg.

While the TNCSC responded that the price was hiked after factoring in expenditure in handling, transport, storage charges and interest factor, the CAG has concluded that the civil supplies corporation was to bear the incidental cost incurred in connection with distribution of wheat to Amma Unavagam.