Odisha State Seeds Corporation Seeks Compansation for Loss

BHUBANESWAR: Under deep financial stress, the Odisha State Seeds Corporation (OSSC) has requested the Agriculture department to make provision in the Supplementary Budget for compensating its loss of Rs 18.95 crore during Kharif 2016.

Due to low off-take of certified paddy seeds by farmers, the State-owned Corporation sustained a loss to the tune of Rs 30 crore in 2016-17. The Government partly compensated the loss by providing a subvention of Rs 7.5 crore in 2017-18 with an assurance to pay the balance amount of Rs 18.95 crore in the current financial year.

However, as there was no provision in the 2018-19 budget in this regard, the hopes of OSSC to recover its loss came crashing down. The Corporation has taken up the issue with the Government several times.

Sources in OSSC said that, the Agriculture department has recommended the case to the Finance department for approval and making necessary provision in the Supplementary Budget which will placed in the monsoon session of the Assembly.

OSSC sustained loss due to implementation of direct benefit transfer (DBT) scheme in 2016. Under the scheme, the Corporation had to collect the full cost of seed from farmers and refund the subsidy amount to their accounts later.

And as a majority of the farmers were not in a position to make upfront payments for certified seeds, they preferred to meet their seed demand from local markets where rate is much cheaper.

OSSC could only sell 2.91 lakh quintal due to poor response from farmers, which had purchased about 5.45 lakh quintal of certified seeds for supply. It had to dispose of the balance stock of three lakh quintals in the open market at half the cost, sustaining a loss of about Rs 30 crore.

The sources said that, the Corporation, which has been sustaining losses every year in seed procurement, had also given a proposal to the State Government to provide an annual grant of Rs 5 crore for supply of quality seeds to farmers. However, the Government is yet to consider the proposal.

Source: http://www.newindianexpress.com/

Privacy Policy
Email :