Nagaland: CNCCI questions transparency in PDS for rice

The Confederation of Chambers of Commerce and Industries (CNCCI) has expressed serious concern over the transparency of Public Distribution System (PDS) for rice in the state, while questioning the seemingly “magical” appearance of rice in Nagaland despite a significant decrease in imports.
Addressing the media at Niathu Resort, Chümoukedima on Monday along with trade bodies of five districts, CNCCI president Dr. Khekugha Muru expressed concerns regarding the lack of transparency in reaching various schemes to the poor sections of society. Specifically, Dr. Muru questioned the transparency of the Public Distribution System (PDS) for rice, alleging that rice intended for the poor was being monopolized and syndicated for sale in the market instead.

Addressing media persons at Niathu Resort, Chümoukedima on Monday, CNCCI president Dr. Khekugha Muru raised concerns about the lack of transparency in delivering various schemes to the poor. Specifically addressing the PDS for rice, Dr. Muru alleged that rice intended for the impoverished was being monopolized and diverted for sale in the market instead.
Dr. Muru emphasized that the concern over PDS was initially raised by the District Chambers and subsequently brought to the attention of CNCCI.

Clarifying the involvement of CNCCI, a trade body, in this matter, he expressed concern that certain mill owners or repackaging owners were taking advantage of the system by purchasing rice intended for distribution to beneficiaries and instead selling it in the market for profit.
Dr. Muru highlighted CNCCI’s opposition to such monopolistic practices, underscoring that not all business communities or rice dealers had equal access to these opportunities. He emphasized that the entire business community dealing with rice was now subject to the control of a select few individuals, a situation CNCCI found unacceptable.

Furthermore, he pointed out the discrepancy in the availability of rice in the market. Despite the state’s agricultural produce being insufficient to meet the needs of the growing population, and the significant decrease in rice imports over the last 5 to 6 years, he questioned the source of the rice flooding the market. Data indicated that 10 to 15 years ago, around 40 to 60 wagons of rice were imported monthly, each carrying 640 quintals. However, in recent years, rice imports had seen a drastic decline.

He, therefore, questioned the state government and Food and Civil Supplies (FCS) department, why, despite the existence of numerous welfare schemes for the poor, the benefits were not transparently reaching the intended beneficiaries. He urged both the department and the state government to address and streamline the mysterious appearance of rice in the state.
Dr. Muru clarified that CNCCI’s stance was not against the state government or the department. Instead, he urged both entities to see this as an opportunity to address concerns and streamline the distribution of “poor man’s rice”.

Meanwhile, Dimapur Chamber of Commerce and Industries (DCCI) president Akashe Zhimomi noted that with the introduction of free rice schemes, the import of rice for sale in the market had drastically decreased. He, however, expressed concern over the abundant availability of rice in the market despite this decrease in imports.
Zhimomi reiterated the demand for the department and the state government to investigate this issue and take necessary action to ensure transparency in the distribution of rice.

On the other hand, Peren District Chamber of Commerce and Industries president Haizing Mpom alleged that there was something amiss in the PDS scheme, noting that everyone was equally affected. He claimed that rice meant for the poor was being monopolized and sold to syndicates, who then resold it to consumers in the market at higher prices.

PDCCI general secretary also raised concerns about beneficiaries in Peren only receiving 4 kilograms per head instead of the designated 5 kilograms. As pointed out by CNCCI, he mentioned that the PDS rice for October 2023 was skipped.
Niuland Chamber of Commerce and Industry president Zheito Murumi alleged that the district was only receiving 1000 quintals of rice as opposed to the 2000 quintals that other districts were receiving. He further questioned the motive of the state government regarding why suppliers and stockiest were tendered to non-Nagas amidst a high percentage of unemployment among Nagas. He raised concerns about the discrepancies in the Tide Over Scheme in the district.

Chümoukedima Chamber of Commerce and Trade Association vice president V Bohoto Achumi also questioned why the department was providing the Tide Over Scheme to “syndicates or smugglers”, suggesting that the same could be sold to the public for the same price.
While acknowledging that beneficiaries in Chümoukedima were receiving the designated 5 kilograms of rice, he expressed concern that other essentials meant for the poor, such as lentils, edible oil, etc., were also being manipulated and sold in the market.

In this regard, Dr. Muru questioned why the state government or the department was hesitant to come to the table and address the issue.
He demanded the postponement of the tendering of PHH and warned that CNCCI had not yet escalated the issue beyond the department. However, he added that if the department failed to address their demands, CNCCI was prepared to pursue all available means and escalate the matter to higher levels.

Regarding the allegation of suppliers charging Rs 3 to beneficiaries when it should be free, DCCI’s Akashe Zhimomi stated that the trade body had no authority over such matters. He suggested that it was the responsibility of the state government or the department to clarify or investigate and take legal action against those involved.

When asked if similar problems were faced in other districts, Dr. Muru confirmed that several district presidents had reported similar issues.
Regarding the state quota for rice distribution, Dr. Muru provided figures as of 2017, stating that the state received a total of 1662.500 MT per month for AAY, 5969.610 MT per month for PHH, and 3872 MT per month for the Tide Over Scheme.
Dr. Muru reiterated that CNCCI’s intention was not to oppose the state government or the department but to address concerns and improve the distribution of the PDS scheme in the state.

This article has been republished from the Nagaland Post.