The Hindu : Karnataka News : Ministry finds fault with CAMPCO's arecanut sale

Online edition of India's National Newspaper
Friday, Jun 10, 2005

Karnataka

Karnataka

Ministry finds fault with CAMPCO's arecanut sale

Raviprasad Kamila

Centre calls for a more transparent, effective procedure

MANGALORE: The Cost Accounts Branch of the Department of Expenditure, Union Ministry of Finance, in a latest report has observed that the Central Arecanut and Cocoa Marketing and Processing Cooperative Limited (CAMPCO) here failed to maintain transparency in the disposal of stocks of arecanut purchased from farmers under the market intervention scheme (MIS) of the government in 2003.

The government had appointed CAMPCO, a multi-State cooperative society of Karnataka and Kerala, as the nodal agency for the purchase of arecanut from farmers under the MIS in 2003.

In the report No. 7589 dated February 28, 2005, the Director (Cost), C. Hubert Pothiraj, observed: ".... the present procedure adopted by CAMPCO Ltd. for sale of MIS stock by inviting bids/rates from the selling representatives is not free from its inherent deficiencies. The present system does not provide documentary evidences on record to provide transparency and to ensure that the stock is disposed of to the highest bidder only. ".... It is noted that CAMPCO Ltd. has disposed of the entire stock by following its own procedure of sale.... It was further explained that CAMPCO Ltd. had conducted secret bid sale of MIS stock on February 4, 2003 at APMC Yard, Puttur, in the presence of the President and the Vice-President of CAMPCO Ltd., and President and Secretary of APMC, Puttur, and the Deputy Director of Horticulture Department, Mangalore. On that day, about 100 traders/dalals from Mangalore, Puttur and Sullia participated. Since the rates quoted by them were not on the expected range for all varieties, limited sale was made on that day."

"As such CAMPCO Ltd. continued to follow its own procedure of sale after intimation to the Deputy Director of Horticulture, Department of Horticulture, Mangalore."

The report further said: "Therefore, it is suggested that a suitable mechanism/procedure, which is more transparent and effective be evolved, which may be followed by all State implementing agencies to maximise sales realisation and minimise losses."

Subsequently, Vinit K. Verma, Deputy Director of Cooperation, Department of Agriculture and Cooperation, Union Ministry of Agriculture, in a letter dated April 13, 2005 to the Director of Horticulture, Karnataka, requested him to take suitable action on the observations and suggestions made by the Cost Accounts Branch and furnish his comments to the Centre immediately. CAMPCO had disposed of arecanut stocks purchased under MIS from farmers between February 11, 2003 and May 30, 2003.

Sources told The Hindu that CAMPCO is still following the same policy in the disposal of stock as the Government recently appointed it as the nodal agency for the purchase of arecanut from farmers under MIS.

Some shareholders alleged that bulk offers are given only to specific selling representatives. Because of this, a majority of selling representatives cannot participate in the sales, which has resulted in the accumulation of huge stock at different branches. It is also said to have contributed to the arecanut market remaining stagnant in the last two or three years.

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