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Why did we select this subject for Audit?
The Government of India (GoI) spends huge amount of money for supply of rice under Targeted Public Distribution System (TPDS). The milling charges were fixed by the GoI long back in 2005, on the basis of recommendations of the Tariff Commission of India and since then the milling charges have not been revised. However the rice millers are still carrying out the milling operations at milling charges fixed in 2005, without any demand for increase in the milling charges even though the cost of milling has increased. Significantly, the selling price of the by-products i.e. rice bran, broken rice and husk generated in the milling process, has increased substantially. There were also concerns regarding payment of Minimum Support Price (MSP) to farmers, revision of milling charges for paddy and non-delivery of rice. Accordingly, this Performance Audit was conducted to examine such issues along with the effectiveness of monitoring and control processes at various stages.
What were our audit objectives?
The performance audit was conducted to evaluate whether: