Low-income farmers deprived of Govt. paddy purchasing programme

The government’s plan to enrich the economy of the low-income paddy farmers and small/ medium paddy millers through the paddy purchasing and distribution programme has failed in the Batticaloa district 

District Secretary and the 14 Divisional Secretaries have come under severe criticism for not properly implementing Govt. paddy purchasing programme

It is alleged that the Agrarian Development Officers have failed to discharge their duties

According to the circular, paddy can be purchased only under one PLR number

The government’s target to achieve its primary goal of enriching the economy of the low-income paddy farmers and small/ medium paddy millers through the paddy purchasing and distribution programme has failed in the Batticaloa district.   

The objective of the Ministry of Finance to purchase paddy from low-income paddy farmers and give them to small and medium mill owners to mill, store and distribute amongst the low-income families in every district during the 2022/2023 Maha season has become unsuccessful in the Batticaloa district, sources from the Ministry of Agriculture alleged.   
Two circulars (DFD/2023-1 and DFD/2023-1(II)) issued by the Secretary Ministry of Finance Mahinda Siriwardena on February 9, 2023, and March 1, 2023, respectively, instructed all District Secretaries (DS) to purchase paddy from low-income farmers and to give the stocks to small and medium mill owners who have the necessary capacity of their own to mill and store the rice in order to distribute amongst low-income families.  
Although the government’s primary goal was to enrich the economy of the low-income paddy farmers and small and medium mill owners, the question arises whether this objective was achievable in the Batticaloa district.
District Secretary and the 14 Divisional Secretaries have come under severe criticism for leaving these categories in the dark when implementing this programme.  
Although these paddy farmers were expecting to sell their crop at a reasonable price and the small and medium mill owners were expecting to participate in this programme to earn a living, the District Secretary of Batticaloa has deliberately prevented them from taking part. And it is alleged that this official is said to have selected farmers and millers known to her and the Divisional Secretaries even though they didn’t have the capacity mentioned in the circular.  
Allegations have also been levelled against the Agrarian Development Officers in the district for acting contrary to the instructions given by the Finance Ministry.   
 “Ministry of Finance and Economic Stabilization and National Policies issued two circulars instructing how to purchase paddy from low-income farmers and give the stocks to small and medium mill owners to enrich their economy. Instead, the District Secretary has invited selected millers to participate in this programme in all 14 Divisional Secretariats without considering their capacity, violating the given rules and regulations,” Agriculture Ministry sources said.  
According to the circular, the District Secretary/Divisional Secretaries had to enter into agreements with qualified small/ medium mill owners. Instead, it is alleged that agreements have been signed with mill owners who are working hand in glove with the District Secretary/ Divisional Secretaries.   
As per the circular, the maximum amount of paddy that could be purchased was based on the extent of the cultivated lands of each farmer. Permission was granted to purchase up to a maximum of 2,000 kg from a farmer who had cultivated up to one acre of land. Those who have cultivated up to an extent of two acres were eligible to supply a maximum of 4, 000 kg each and permission was granted to purchase a maximum of 5, 000 kg each from those who have cultivated in more than two acres during the 2022/ 2023 Maha season.  
Agriculture Ministry sources accused the District Secretary and Divisional Secretaries of ignoring the guidelines given and for purchasing even up to 60,000 kg from one farmer.   
According to an audit query (which this newspaper is in possession of) issued to the District Secretary Batticaloa by the National Audit Office in April 2023, these public officials have deprived low-income paddy farmers in the respective divisions, the opportunity to sell their crops for a reasonable price.  
As per the audit query, EravurPattu Divisional Secretariat had purchased 431, 692 kg of paddy from 16 farmers exceeding the maximum limit. According to the documents in the possession, 64, 000 kg have been purchased from one farmer while five others have supplied more than 45,000 kg each. More than 10,000 kg each have been purchased from the other 10 farmers.  
“In another division, the officials have purchased 183, 349 kg of paddy from two families. A staggering 91,369 kg have been purchased from one family while another stock of 91,980 kg have been purchased from the second family leaving the low-income farmers in a total quandary,” a reliable source from the Department of Agrarian Development said on strict condition of anonymity.  
According to Agrarian Department sources, it was the responsibility of the District Secretary and Divisional Secretaries to see whether the process was followed as per the guidelines stipulated by the Ministry of Finance. The duty vested on Agrarian Development Officers was to certify that the farmers are from low-income groups and no paddy is purchased from those who were not engaged in paddy cultivation during this season. But the Agrarian Development Officers have failed to discharge their duties.  

According to the audit query, paddy mills that neither have Environmental Protection Licenses (EPL) nor business registration numbers were among the selected millers in this programme whilst paddy has been purchased from those who were not engaged in paddy cultivations and even from government servants violating the Establishment Code.  
According to Section 1.12 of the Establishment Code, no officer may furnish supplies on public account or furnish specimens to any public institution without the special sanction of the Ministry Secretary. Without any approvals, 106,249 kg of paddy amounting to Rs.10.6 million had been purchased from 26 public officers by the Divisional Secretary Batticaloa  
“The Agrarian Development Officers have misused the powers vested on them. There were many reported cases where the Agrarian Development Officers had certified the suppliers as paddy farmers although they were not. There were instances where paddy has been purchased from public servants as well,” sources added.   
Divisional Secretariat, EravurPattu has purchased 503, 000 kg of paddy from 15 individuals.  
“The documents show the amount of paddy these 15 farmers have supplied has exceeded the amount they have cultivated during the 2022/2023 Maha season. It is believed they have supplied their leftover stock from last season. The circular has clearly stated that paddy from leftover stocks should not be purchased,” Agrarian sources said.   
Meanwhile, it is learnt how the Agrarian Officers have certified the purchase of 17, 825kg of paddy from four members of the same family- father, mother and two sons in the PorativuPattu division.  

Paddy purchased from those not engaged in cultivation   
Further reports show how 30, 202 kg of paddy had been purchased by the Divisional Secretariat KoralaiPattu Central from two individuals who were not engaged in paddy cultivation while Divisional Secretariat, Manmunai South West has purchased 4, 365 kg from a farmer who too was not engaged in cultivation during 2022/ 2023 Maha season. This has been recommended by the Agrarian Development Officer in Kokkaddicholai.  
As per the audit query, 29, 110 kg of paddy had also been purchased by two Divisional Secretariat in Valaichchenai and Vellavely from those who were not engaged in paddy cultivation.  
Meanwhile, Divisional Secretariat Manmunai South West is accused of purchasing 13, 011kg of paddy from a farmer under three Paddy Land Register (PLR) numbers.  
“Any farmer can have several PLR numbers, but according to the circular, paddy can be purchased only under one PLR number. If the Divisional Secretaries and the District Secretary have violated the instructions given to them, we urge the Finance Ministry to take stern action against them failing which they will commit this fraud in future as well,” sources claimed.  
It had also come to light how the selected mill owners who did not have the capacity to mill and store the stocks have outsourced the milling and storing process.   
“Divisional Secretariat in Manmunai South, EravurPattu and PorativuPattu had handed over 691,997 kg of paddy to a single miller who had only a mere space of 150 sq. ft. He even did not have a steamer to boil the rice, no yard to dry the paddy and no storage facility. Although he had given sub-contracts to two private mills, by deceiving the instructions given, rice had been packed and distributed under the name of his Rice Mill in Kakachivattai, Mandoor,” sources said.  
According to the audit query, PNV Rice Mill at PorativuPattu division does not have a business registration nor has the Environmental Protection License (EPL) from the Central Environmental Authority to function as a mill been given paddy to mill, on the recommendation of the District Secretary Batticaloa. Divisional Secretariat Kattankudy had given this mill, over 33, 161kg of paddy.  
As per the guidelines, the final product- the winnowed rice had to be packed in 10 kg bags on which the name of the rice mill, government emblem and the logo ‘For Free’ should be clearly printed to obtain the payments.  
“As PVN Rice Mill did not have the necessary approvals to function as a mill, they have distributed 1, 600 bags of each 10kg bag under a pseudo name. At the time the audit officers visited the mill on April 26, 2023, there were 554 kg of rice that have not been distributed. Divisional Secretary Kattankudy and the District Secretary Batticaloa have to be questioned how 33, 161 kg of paddy was given to an unregistered mill sidelining the many registered mills in the division,” sources claimed.   
It has also come to light how the Divisional Secretaries of KoralaiPattu West and South had given 469, 098kg of paddy to ‘Ree Star Rice Mill’ on the recommendation of the District Secretary although the miller did not have the capacity to handle the milling and storing. Ree Star Mill too has got the paddy milled and stored by outsourcing the work.   
“Divisional Secretary KoralaiPattu West had agreed to give the contract to ‘Minhaj’ and Natheer’ paddy millers as they had the necessary facilities. But due to unknown reasons, they were not given an opportunity although the two millers had high expectations to participate in the programme during the Maha Season,” sources claimed.  
The sources also accused the officials of not checking whether the rice is cleaned properly before it was packed for distribution.  
“The Divisional Secretariat of Manmunai South EruvilPattu hasn’t checked the rice before it was packed. When samples were taken for government audit, it has revealed that the rice has not been winnowed up to the standard,” sources said.   
According to Circular No: 08/2017 of the Department of Samurdhi Development, Samurdhi benefits should be stopped soon after the income of the beneficiaries has increased.  
“Those who obtain government jobs or any foreign employment are not entitled to benefits. Although there are records that 320 Samurdhi beneficiaries had either obtain government/ foreign jobs the Divisional Secretariat of Manmunai South EruvilPattu has given bags of rice to these families as well.  
“As a result, the government has incurred a loss of Rs. 1,122,075,” sources said.  
District Secretary Batticaloa Ms. Sivapriya when contacted to find out why the stipulated rules and regulations weren’t followed, refuted the allegations levelled against her.  
According to her, she has informed all mill owners and the respective Divisional Secretaries selected the mill owners.  
“You have received wrong information from your sources. Most of the farmers had sold their stocks to private parties by the time we started this programme. As there weren’t enough paddy to purchase, we had to buy stocks from any farmer that was willing to supply us with produce. We never purchased more than 5, 000 kg from one farmer,” Sivapriya said.  
When asked why they selected mill owners who do not have the necessary capacity and as a result had provided subcontracts, Sivapriya said that none of the millers have given subcontracts as they had all the necessary capacity and facilities to handle the work by themselves.  
When asked why paddy was purchased from public servants in violation of the Establishment Code, the District Secretary said that neither she nor the Divisional Secretaries knew the background of the paddy farmers.  
“The Agrarian Development Officers certified the names and we purchased from them. Is there any regulation imposed by the government that government officers cannot engage in businesses? Even if we purchased paddy from state officials I don’t think that there is anything wrong in it,” Sivapriya said.  
Although the National Audit Office has sent an audit query to the District Secretary Batticaloa seeking an explanation for malpractices that had taken place in the programme, Sivapriya said that she is unaware of such an audit query.  
“We have not violated any rule or regulation. We have not purchased paddy more than what we were asked to,” she added.  
Deputy Commissioner of Agrarian Development Batticaloa Mr. Jahanlath said that they never certified any farmer who was not engaged in paddy cultivation.  
“I thoroughly refute the allegations levelled against our officers. We were requested to certify the names of farmers who have obtained fertilizer from us for cultivation. Based on this list we certified the names. We have not certified the names of those who have not cultivated during the Maha Season. If there is an allegation as such, I can re-check and give the accurate details,” he said.  
When contacted Director General, Department of Development Finance of the General Treasury, Malamathi Gangadaran, to find what action would be taken against the government officers who have violated the guidelines given in the circulars, Ms. Gangadaran said that she cannot make comments to the media without the permission of Treasury Secretary Mahinda Siriwardena.  
“We have not received any such complaints as we get the details of how this programme was implemented from the respective District Secretaries and the Divisional Secretaries. If there are allegations please send an e-mail to the Treasury Secretary and copy it to me. Once I receive the permission I will talk to you,” Gangadaran said.  
This newspaper sent an e-mail to the Treasury Secretary and the Director General seeking their responses to the allegations that are levelled in this regard.