Cooperation Department Strict Against PACS Showing Laxity in Depositing CMR Under Kharif Marketing Season: Crackdown Against Defaulters, Panic Created Due to Orders for Physical Verification of PACS

The Cooperation Department has started tightening the noose around Primary Agriculture Credit Societies (PACS) showing laxity in the process of procuring farmers' paddy and providing the equivalent rice (Custom Milled Rice - CMR) to the government in Bihar. The department has adopted a very strict stance regarding the failure of millers and PACS to deposit CMR on time under the Kharif Marketing Season.

Following these strict instructions from the Cooperation Department, panic has spread across all districts in the state. The department has issued explicit directives to all Block Cooperative Extension Officers (BCOs) to conduct physical verification of defaulting PACS in their respective jurisdictions and immediately ensure strict legal and administrative action against PACS presidents who fail to deposit the rice.

What is the Whole Matter? (Delay in Depositing CMR and Departmental Displeasure)

Every year, the government procures paddy from farmers at the Minimum Support Price (MSP), gets it milled in mills, and deposits the rice (CMR) in the warehouses of the Food Corporation of India (FCI) or the State Food Corporation (SFC).

Violation of Time Limit: Under the Kharif Marketing Season, PACS are required to return CMR equivalent to the paddy to the government within a specified time frame. However, despite paddy lifting and milling, many PACS are failing to deposit the rice in warehouses on time.

Department's Strict Warning: High-ranking officials of the Cooperation Department have found that the rice distribution and storage targets of the government are being impacted due to the negligence of certain PACS. In view of this, the department has made up its mind to wage a decisive battle, refusing to show leniency.

Orders for Physical Verification: All block cooperative officers have been instructed to step out into the field to inspect the warehouses of defaulting PACS and ascertain where and in what condition the paddy is stored.

Dimensions of Crackdown and Administrative Action on PACS

This stern step by the Cooperation Department has significantly escalated difficulties for PACS managers and presidents. Actions are being taken by the department on the following fronts:

Warning of License Cancellation: The process of canceling the cooperative society licenses of PACS that are intentionally dilly-dallying in depositing CMR has been initiated. Additionally, preparations are underway to file certificate cases against them.

Threat of Criminal Prosecution: Keeping in view the likelihood of embezzlement or misuse of cooperative funds and paddy, FIRs are being registered against guilty PACS managers and presidents to bring them under legal scrutiny.

Restriction on Financial Transactions: Future financial transactions, grants, and the paddy procurement quota for the new session of defaulting PACS will remain blocked until they deposit 100% of the pending CMR.

Impact on Agricultural System and Cooperation

This strictness by the government is being regarded as critically necessary to protect the interests of farmers and maintain the smooth operation of the Public Distribution System (PDS).

Restoration of Transparency: Timely deposit of CMR ensures that the government maintains an accurate assessment of food grains, preventing any disruption in the ration distribution system among the poor.

Accountability of PACS: This action will curb corruption and lethargy at the PACS level, given that several PACS have hitherto avoided depositing rice by manipulating paddy procurement.

The stern stance of the Cooperation Department against PACS showing laxity in depositing CMR under the Kharif Marketing Season is a major need of the hour. The physical verification of defaulting PACS and the swift actions taken by block cooperative officers make it clear that no laxity will be tolerated in matters concerning government funds and grain. This step will not only reform the system but also ensure transparency in the operation of PACS.