Madhya Pradesh's Rs 62,944 Crore Food Supply Crisis: Debt Burden and Rotting Grain Expose Systemic Failures

Madhya Pradesh's food supply system has been rocked by shocking revelations in the state Assembly, raising critical questions about financial management, storage inadequacies, and governmental responsibility.

The state government has acknowledged that the Madhya Pradesh State Civil Supplies Corporation (NAN) is burdened with an enormous bank debt of Rs 62,944.71 crore, resulting in daily interest payments of Rs 14.17 crore. This admission came from Food and Civil Supplies Minister Govind Singh Rajput in response to MLA Sushil Kumar Tiwari's inquiry.

While the government maintains that interest payments are being handled regularly, their statement attributes the massive debt to Minimum Support Price (MSP) procurement and "decentralised purchase and milling" operations. When questioned about responsibility for this crisis, the minister declined to attribute blame, stating that "The question does not arise."

At the Umri warehouse in Sirmaur constituency, approximately 939.044 metric tonnes of paddy has been deteriorating for a year, creating unpleasant odors and presenting significant health risks to nearby communities. MLA Divyaraj Singh voiced concerns in the Assembly, asking: "Why has rotting grain not been removed for one year? Who will take responsibility if this triggers disease or an outbreak?"

The minister acknowledged this troubling situation. The paddy was acquired in 2020-21, with milling scheduled for completion by February 2022. The state failed to meet this deadline, and the Centre refused to grant an extension. With limited options, the government attempted to sell the stock through e-auction.

The entire 3682 MT batch was sold via e-auction to Jay Ambe Agrotech at Rs 935 per quintal. However, the buyer only collected 2742.956 MT, leaving 939.044 MT to deteriorate in the warehouse. Despite a July 12 deadline, the company failed to retrieve the remaining inventory.

Only after the situation became publicly embarrassing did the government issue a show-cause notice on November 7, instructing the company to immediately collect the remaining grain. An investigation committee has also been established.

Experts suggest that the corporation has reached a critical point where its financial instability, failing storage infrastructure, and the vulnerable position of farmers and disadvantaged consumers indicate a more profound policy paralysis.