FCIK raises alarm over Agriculture Department’s mixed tendering system

Srinagar, Nov 28: The Federation of Chambers of Industries of Kashmir (FCIK) has raised serious concerns about the potential negative impact of the Agriculture Department’s mixed tendering system under Kisan Khidmat Ghar scheme of Holistic Agriculture Development Programme (HADP) and has sought the intervention of CM Omar Abdullah and DCM Surinder Kumar Choudhary to ensure that local manufacturing units are not excluded from the scheme.

In a statement, FCIK has informed that the department has blended two distinct product categories furniture and electronic items into a single tender package which may result in fewer qualified bidders for either category.

The Chamber has expressed dismay that this approach, which continues the policy of sidelining local manufacturers, could severely impact the local industrial community, creating significant challenges for businesses.

The Federation argues that this could also result in the delivery of inferior products at inflated prices, undermining the fundamental principles of transparent and competitive public procurement, which are designed to ensure the acquisition of high-quality products at the most competitive prices.

According to FCIK, this decision not only creates confusion among potential bidders but also complicates the bidding process, making it more difficult for qualified suppliers to compete effectively.

“The tenders are simply unworkable for our members in the furniture sector who lack the infrastructure and capabilities to meet the requirements for electronic items. We believe this mixed tender will either result in inadequate bids or a lack of qualified suppliers altogether,” said FCIK President Shahid Kamili.

He further said that the supply of furniture comes under 358 reserved items for Micro and Small units under the Union government’s Public Procurement Policy launched under MSME Act of 2006.

The Chamber has expressed concern that the Agriculture Production Department of Budgam and Srinagar have recently floated tenders which combine the procurement of furniture and electronics and the action has sparked widespread concern, particularly among furniture manufacturers.

Further, the departments in Bandipora, Baramulla, and Anantnag although issued separate tenders for furniture and equipment but have imposed irrationally stringent qualification criteria that effectively exclude local manufacturers.

“This approach, combining two unrelated procurement categories, has created confusion and difficulties for businesses, potentially undermining the objective of securing quality products at competitive prices and adhering to the laid down procurement policies” regretted Kamili.

He said that FCIK will take up the issue with the Chief Minister and Deputy Chief Minister to ensure that local manufacturers are not sidelined for their due shares from the ambitious 5000-Crore Holistic Agriculture Development Programme (HADP).

The Chamber has already brought the marketing concerns of the local manufacturers to the notice of CM and DCM who have been prompt enough to direct for a review of the practice.

“We are satisfied that a draft Public Procurement Policy has already been brought in public domain and would be finalised after thorough deliberations with the stakeholders” informed Kamili, adding that the policy would take care of the earnest money and turnover exemptions for the local units besides ensuring reservation in the procurement.

The Holistic Agriculture Development Programme (HADP) launched by the Prime Minister on March 7, 2024 which include the establishment of 1000 Kisan Khidmat Ghars in each provinces of J&K, designed to serve as one-stop solutions for farmers in Jammu and Kashmir. These centres are being equipped with multifunctional kiosks featuring industrial products manufactured by local enterprises, alongside other advanced equipment, hardware, and software facilities. Other schemes under the HADP also include the procurement of industrial products like poly-houses.