Rs 62,944 Crore Debt, Rotting Grain: Madhya Pradesh Admits To Food Supply Failure

Madhya Pradesh's food supply mechanism has been shaken by a series of explosive revelations in the state Assembly, raising fundamental questions over financial management, storage failures, and the government's accountability.

The state government admitted that the Madhya Pradesh State Civil Supplies Corporation (NAN) is drowning under a massive Rs 62,944.71 crore bank debt, with the government paying a staggering Rs 14.17 crore per day just in interest. The admission came from Food and Civil Supplies Minister Govind Singh Rajput while responding to a question by MLA Sushil Kumar Tiwari.

The government insists interest payments are being made regularly, but its own statement that the massive debt is the result of Minimum Support Proce (MSP) procurement and "decentralised purchase and milling" reveals the truth. When asked who is responsible for this crisis, the minister refused to assign blame, saying, "The question does not arise."

Inside the Umri warehouse of Sirmaur constituency, 939.044 metric tonnes of paddy has been lying rotting for a year, spreading stench and posing a major health hazard to surrounding villages. MLA Divyaraj Singh raised an alarm in the Assembly. "Why has rotting grain not been removed for one year? Who will take responsibility if this triggers disease or an outbreak?" he asked.

The minister accepted the grim reality. The paddy was purchased in 2020-21 and milling should have been completed by February 2022. The state failed to meet the deadline and the Centre denied an extension. Left with no option, the government attempted to dispose of the stock via e-auction.

The entire 3682 MT lot was sold through e-auction to Jay Ambe Agrotech at Rs 935 per quintal. But the buyer lifted only 2742.956 MT, leaving 939.044 MT to rot in the warehouse. Despite a deadline of July 12, the company did not clear the remaining stock.

Only after the situation became a public embarrassment did the government issue a show-cause notice on November 7, warning the company to immediately lift the remaining grain. A probe committee has also been formed.

Experts say the corporation's condition has reached a breaking point where its financial instability, collapsing storage systems, and the precarious position of farmers and poor consumers are symptoms of a deeper policy paralysis.