CAG faults Army's atta procurement system

 The process of grounding grains to make bread for officers and soldiers, besides being old-fashioned, is costing the 1.13 million-strong Army Rs 25 crore more each year, a report by the Comptroller and Auditor General of India (CAG), tabled in Parliament on Tuesday, has revealed.

Despite a CAG recommendation, the Army headquarters is sitting on a proposal to change the atta procurement system for the last two years.

Comparative analysis shows that the cost of a 50 kg branded atta—according to an offer from one company—is much less than the money spent on the existing process. The CAG has noted the difference in the cost between procuring readymade atta and the grounded atta as Rs 2 per kg. It has also not spared the Army for letting several of its personnel sweat over the grinding process in its mills.

While a depot commander concurs with the CAG recommendation of purchasing good-quality packaged atta in October 2008, Army headquarters did not take any decision so far.

The CAG looked at procurement of ration for soldiers in operationally-active northern, western and eastern commands between 2005-08. The procurement is done by the Army Procurement Organisation under the Army Service Corps.

Gross irregularities were found in every stage of the procurement process. Dry rations which include rice, wheat, sugar, edible oil, pulses and tinned food were stored months after their shelf life and the mismatch between the demand and procurement is so serious that CAG said either the soldiers are underfed or the Army has a secret stock.
The report also hints at existence of cartels in the purchase of meat and vegetables. In Delhi, for instance, only one vendor supplied meat worth Rs 5 crore every year for the last 3 years.