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ED smells a rat over ready-to-cook items sourced by Markfed from private suppliers

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The Enforcement Directorate is examining an internal communication of the Department of Social Security, Women and Child Development (SSWCD) that had flagged repeated complaints related to the sourcing of food items by Punjab State Cooperative Supply and Marketing Federation Limited (Markfed) from private suppliers for the supplementary nutrition programme (SNP).The communication sent in January by the Directorate of SSWCD to the registrar of Cooperative Societies and the managing directors of Markfed and Milkfed noted that the sourcing of material from private suppliers by Markfed had led to several complaints, and also, the taste and texture of “panjiri” prepared with refined soybean oil and outsourced from private contractors were not acceptable to many beneficiaries. The product was subsequently discontinued.The SSWCD that implements the Integrated Child Development Services, a centrally sponsored scheme covering 26,600 anganwadi centres in Punjab and benefiting around 12 lakh people, had been impressing upon the Markfed and Milkfed to set up an in-house facility rather than sourcing the food items from outside. Sources said the ED was also analysing January 21 WhatsApp chats that allegedly indicated attempts to influence the tendering process. The agency is looking into an internal Markfed note in which a senior officer had sought action against officials who extended tenders.Panjiri prepared with soybean oil instead of desi gheeMonths after the departmental communication and allegations of substandard quality, including claims that soybean oil was used instead of desi ghee, Markfed had withdrawn from the procurement and supply of food items to anganwadis. The federation had been supplying fun pops, “khichdi” premixes, and sweet and salty “dalia” premixes to 27,314 centres.The issue of food items supplied by private contractors was raised in a high-level meeting held on December 22, 2025, under the chairmanship of Social Security and Women and Child Development Minister Dr Baljit Kaur. The government had then directed Markfed and Milkfed to strengthen their manufacturing capacity.As per the minutes of the meeting, the then Additional Chief Secretary, Vikas Pratap, had emphasised that the long-term solution lay in creating in-house manufacturing facilities for both Milkfed and Markfed. It was pointed out that Milkfed had established five “panjiri” units inside its milk plants around 2005 and that these continued to function.Dr Shena Aggarwal, Director of the SSWCD, had pointed out that Markfed’s reliance on private suppliers had earlier led to complaints. Markfed’s Chief Manager (Marketing) stated that all current suppliers had been empanelled through tenders and none were blacklisted.Minister Baljit Kaur had asked the then Registrar of Cooperative Societies, Girish Dayalan, to coordinate with both federations to build or refurbish in-house capacity. She also directed them to review their costings and factor in subsidised foodgrain provided by the Food Corporation of India. While acknowledging complaints related to food items sourced from private contractors, the minister said the same had been discontinued.Premix products launched after Covid-19 pandemicTill 2020, loose and raw ration was supplied under the SNP. After the pandemic, the department shifted to new recipes using items sourced from the Markfed and phased out raw rations. An MoU was signed with the Markfed for ready-to-cook and ready-to-eat products. Panjiri cooked in desi ghee, earlier supplied by Milkfed, was discontinued in 2023 owing to high cost and replaced by panjiri prepared in soybean oil, which met nutritional standards advised by Punjab Agricultural University, Ludhiana.Hargobind Kaur, chief of the All Punjab Anganwadi Employees’ Union, said after the discontinuation of the desi-ghee panjiri, there had been issues with the food material supplied by private contractors. “After discontinuation of the tenders, the stocks of the food item supplied by contractors lasted till the end of July. From August 1, anganwadi centres have been awaiting wheat and rice from the FCI,” she said.

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