Pricing of gunnies due from millers is a big issue before Telangana Civil Supplies Corporation

The Telangana Civil Supplies Corporation is currently grappling with serious issues over the pricing of gunny bags, which are essential for paddy procurement. With the Rabi season approaching and a substantial area under paddy cultivation expected, the department is under pressure to secure the required number of gunny bags in advance.

Hyderabad: The Telangana Civil Supplies Corporation is currently grappling with serious issues over the pricing of gunny bags, which are essential for paddy procurement. With the Rabi season approaching and a substantial area under paddy cultivation expected, the department is under pressure to secure the required number of gunny bags in advance.

According to government policy, at least 46% of the bags used for paddy procurement should be old serviceable gunny bags, while the remaining requirement can be met by procuring new jute bags for delivering Custom Milled Rice (CMR). The Civil Supplies principal secretary has reportedly been insisting on recovering the cost of gunny bags that have remained unaccounted for by millers for years, at a reasonable price.

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Last year, the government instructed fair price shop dealers to sell empty PDS gunny bags at a rate of Rs 22 (excluding GST and incidentals) to the Telangana State Civil Supplies Corporation Limited to meet the requirement of old serviceable gunny bags for paddy procurement. Officials had reportedly favoured pricing the gunny bags due from the millers at Rs 27 each. However, due to political considerations, it was proposed to price the gunny bags at Rs 15.50 per bag. This price is significantly lower than the Rs 30 per bag paid by the government three years ago when purchasing 10 crore bags from millers, ration dealers, and traders.

Concerns about potential losses to the corporation led to the decision being put under further review. The issue is now likely to be referred to the cabinet sub-committee that oversees paddy procurement in the state for a final decision.

The department is also pursuing millers who have defaulted not only on the delivery of custom milled rice but also on returning the gunny bags to the corporation. Resolving this pricing controversy is crucial for the smooth operation of paddy procurement and to prevent financial losses to the Civil Supplies Corporation.