Union Ministry Seeks Answers on Rs 10,000 Crore Paddy Purchase; Punjab Launches District-Level Inquiry

In response, Punjab's Department of Food, Civil Supplies and Consumer Affairs has ordered all District Food and Supply Controllers (DFSCs) to probe the matter and submit reports by February 13. File Photo.

The Central Government has directed the Punjab Government to investigate a massive alleged paddy purchase scam during the 2025-26 season. According to the report, the Union Ministry of Finance’s Department of Revenue issued these directions to the Punjab Chief Secretary following a detailed complaint filed by a Sangrur-based commission agent-cum-rice mill owner.

The allegations suggest a bogus purchase of paddy worth between Rs 6,000 crore and Rs 10,000 crore took place in state mandis this year. The complainant alleges that commission agents issued fake "J Forms" to farmers, who received payments in their accounts which were subsequently shared among farmers, agents, millers, and procurement officials. To cover the shortfall, cheaper paddy was reportedly purchased from outside the state, specifically UP and Bihar, at Rs 600 per quintal below the MSP and passed off as local produce.

In response, Punjab’s Department of Food, Civil Supplies and Consumer Affairs has ordered all District Food and Supply Controllers (DFSCs) to probe the matter and submit reports by February 13.

While Punjab Food and Supply Minister Lal Chand Kataruchak said that he was unaware of the case, a senior department official stated the complaint is currently "unsubstantiated" due to strict procurement protocols but confirmed that all purchases are being verified for a comprehensive report to the Centre.

Source: The Tribune