CAG finds 3.47 lakh MT foodgrains discrepancy in Gujarat PDS

This audit examined the compliance of the Government of Gujarat's Food, Civil Supplies and Consumer Affairs Department and Panchayat, Rural Housing & Rural Development Department regarding the Public Distribution System (PDS) and Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) for the period ended March 2023.

Who it concerns: Government of Gujarat; specifically the Food, Civil Supplies and Consumer Affairs Department and the Panchayat, Rural Housing & Rural Development Department.

What the auditor found

• CAG found a net difference of 3.47 lakh metric tons (MT) of foodgrains between distribution data and monthly reports during 2015-23.
• CAG noted that the Department irregularly treated closing stock of 54,980 MT of foodgrains and 3,964 MT of sugar as 'nil' at Fair Price Shops (FPSs) in 2016 and 2018 without justification.
• CAG reported that the implementation of the National Food Security Act (NFSA) was delayed by almost two years in Gujarat, limiting access to affordable foodgrains for beneficiaries during that period.
• CAG found that the State Government did not conduct special drives to remove ineligible ration cards between 2016 and 2023, except for the introduction of Aadhaar-based biometric authentication in 2018-19.
• CAG identified significant shortcomings in supervision, including underperformance of Vigilance Committees and a 95 percent shortfall in conducting social audits between 2018 and 2023.
• CAG recommended the State Government establish a standardized process for periodic reconciliation of stock, develop a transparent foodgrains accounting system, and strengthen monitoring mechanisms including routine inspections and regular Vigilance Committee meetings.

Also in the document

• CAG reported that expenditure on procurement and distribution of foodgrains in Gujarat amounted to ₹59,580 crore during 2016-23.
• CAG found that by December 2023, 3.55 crore individuals had received benefits, representing 93 percent of the 3.83 crore target population under the NFSA.
• CAG noted that sample collection and testing of foodgrains were inconsistent between 2015 and 2023, with no testing conducted at end-point FPSs for quality.