Govt watchdog picks holes in wheat import

IMPORTING TROUBLE: The Centre exported 12,000 tonnes of wheat, then found it to be rotten.

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Keywords: Maharashtra, Vigilance Commission

New Delhi: The Central Vigilance Commission (CVC) is investigating allegations of corruption regarding wheat imports last year.

The final report is not yet ready, but Central Vigilance Commissioner Pratyush Sinha told CNN-IBN there were serious lapses in the way wheat was brought into the country. This is the first time that an investigating agency has indicted the process and systems of wheat imports.

About 17 lakh metric tonnes of wheat was imported last year. This was after the Government withdrew tenders in which wheat was priced at $263 per tonne only to import the same wheat a few days later at a whopping $325 to $390 dollars per tonne.

Questions were raised not only about a few private traders possibly manipulating the markets but also about the quality of the wheat, and the need to import in the first place.

One of the primary allegations was that of foreign players manipulating the market. Replying to that the Sinha said, "Basically, complaints were made about market manipulation—that proper procedures were not followed which resulted in the Government paying more than it should have paid. Our own finding so far is that perhaps the department should have gone about it in a systematic manner and there is need for systems improvement—there were lapses in the system."

Speaking specifically on charges of misconduct, malafide intention, or corruption, Sinha said, "We have found lapses more in the manner in which the process has been gone through rather than any individual lapses..."

The CVC has also stated the need for a revamp of the system of public procurement. "The new system must take care of three things in public procurement: transparency, equitable, which means that each bidder should have a level playing field and competitive because this is the best way of price discovery.”

Though the CVC does not have the mandate to investigate the role of ministers, it is looking at the role of many other players. Sinha clarified that he was looking into the role of the Food Department and the State Trading Corporation.

A new system of procurement might be the outcome of the investigation. The CVC confirmed that it has suggested certain improvements in the system and the Government is looking into the entire system of procuring wheat and other commodities.