The Punjab Cabinet gave its nod to "The Punjab Food Grains Transportation Policy 2019-20" for labour and cartage and transportation of food grains from mandis to its storage points at minimum rates through competitive tenders from various transporters.

Facts :

• The decision, taken at the Council of Ministers' meeting chaired by the Chief Minister Captain Amarinder Singh, is aimed at bringing further efficiency and transparency in procurement of food grains operations.
• The policies will apply to the various procurement agencies of the State Food, Civil Supplies and Consumer Affairs Department including Pungrain, Markfed, Punjab State Warehousing Corporation, Punsup, Punjab Agro Foodgrains Corporation, and also the Food Corporation of India (FCI), which procure food grains from various designated mandis.
• For the ensuing season, commencing from April 1, transportation of food grains beyond 8 Kilometers (KMs) would be allowed through a competitive online tender process.
• This would be done by district tender committees, of which the respective Deputy Commissioners would be the Chairpersons, with district FCI head, district heads of all state procurement agencies and district Controller of Food Supplies as members.
• The tenders under this policy would be invited for the financial year 2019-20 and would be valid for the period from 1-04-2019 to 31-03-2020.
• Further, to ascertain the competitive rates, detailed Schedule of Rate (SOR) guidelines have been incorporated in the policy, listing out rates per MT from more than 8 KMs up to 52 KMs.
• For every additional KM beyond 52 KMs, a rate @ Rs. 3.10 per ton/kilometer would be applied. No premium beyond 120% of the rates mentioned in the SOR shall be permissible in any case.
• The powers to open the tenders, evaluation of technical bids and finalisation of the financial bid shall lie with these Committees.To ensure minimum expenditure on transportation of food grains, tenders would be invited cluster wise.
• Apart from the Punjab Food Grains Transportation Policy, 2018-19 and The Punjab labour and Cartage Policy, 2018-19, the cabinet also approved draft notification regarding amendments to the Punjab Food Security Rules, 2016, to specify the provisions related to social audit.
• It may be noted that the state procuring agencies of Punjab namely PUNGRAIN, MARKFED, Punjab State Warehousing Corporation (PSWC), PUNSUP, along with Food Corporation of India (FCI), procure food grains every year for the Central Pool or for Public Distribution System at the Minimum Support Price fixed by the Government of India.
• The detailed procedure regarding service of notice, cancellation of work, levy of penalty and blacklisting has been made part of the policy this year.
• District Tender Committees have been given the right to blacklist deficient contractor up to a period of two years, besides forfeiture of security and levying of penalty up to 2% of the contract value, depending on the merit of each case.

Analysis :

• The Centre had made the benefits available under the Targeted Public Distribution System (TPDS) a legal right by implementing the National Food Security Act-2013 (NFSA).
• The Act was implemented in the Punjab in December 2013, under which the Punjab Government had notified Punjab Public Distribution System (Licensing and Control) Order, 2016 on April 22, 2016.
• As per Section 40 (3) of National Food Security Act, 2013, the rules framed by the state government have to be placed before the Punjab Vidhan Sabha.
• But as per the orders of Supreme Court of India in a Writ Petition - Swaraj Abhiyan Vs Union of India and others, the Government of India directed all the states to amend the rules framed by the states and make a provision related to social audit.
• The new policy aims to give a chance to village level construction societies first so as to generate employment at village level. At the same time, they hope to get realistic bids for procurement, and put an end to the practice of quoting from 200% to 600% above the basic charges.

What is Labour and Cartage policy ?

• It is a policy framed ever year ahead of the wheat harvesting season, laying down charges for the lifting of grains from mandis, transporting them to the godowns for storage, and their onward transportation to other states from the godowns. The entire operation is conducted by the government through various its procurement agencies.
• The policy covers three types of work: for workers in Mandis who clean the grain, pack it in gunny bags, sew up the bags, and then load them into trucks; for transport of the grain from mandis till designated godowns and also further to railway stations for sending it to other states; for Palledar, who unload the grain bags from trucks and do the stacking of this grain inside the godowns, and later load it into trucks for onward transportation to railway stations.

What is the Policy this year ?

• For the first time, the Government has decided to give labour and construction societies, that exist in villages, first preference. Registered with the state government’s cooperative department, they carry out small construction works in the villages.Where societies do not respond, tenders will be floated in the open market.
• The ‘basic rate’ the government is offering to societies is Rs 1.62 per 50 kg bag loading charges( into trucks that will take it from godown to railway station for sending it outside Punjab) and 1.93 per 50 kg bag as stacking charges inside the godown. Societies say the rates are not attractive enough for them.
• The rates are different for the bigger labour suppliers as they can bid over the basic rates. But this year, that too has been capped at 120% of the basic, and no tender can be awarded above this rate. Last year, there was a cap of 136 per cent, but this was not strictly followed, and some contractors even quoted up to 250 per cent of the basic rate.

What about transport rates ?

• For transporters as well, there is a capping of 120% on the basic rates from mandi to godown which are lower than last year. Truckers have been asked to attach turnover of previous financial year .
• This year distance has been divided into different slabs: for a distance of 8-9 km the price offered is Rs 9.28 per quintal: for 9-10 km it is Rs 10.03 per quintal; for 10-11 km price it is is Rs 10.77 per quintal; for 11-12 km, it is Rs 11.52 per quintal. With the above charges the rate worked out by truckers is ranging from Rs 1837- Rs 2270 for different slabs.
• Last year, transporters were making Rs 5400 per truck in the smallest distance slab of 8-12 kms.Truckers have given in writing to DCs to change the rates before the procurement season starts.

What are the challenges ahead ?

• The main objection is coming from truckers. Over 90,000 truckers of Punjab operate under 134 truck unions. They are unhappy with the changes and hence have planned not to participate in tender process which may hamper the lifting process if not sorted out in time. The palledar union also plans protests if the Government does not convince them of the policy details well in time.