Madhya Pradesh’s Rs 62,944 crore debt crisis sparks procurement reform debate

A bold plan to overhaul procurement could rescue Madhya Pradesh’s finances—or backfire. Why farmers and politicians are clashing over Rs 14 crore daily repayments.

, and Administrator

2025 December 2 . 11:10 AM

1 min read

The picture is taken on the street of a city. In the center of the picture there are shops, tents,... — The picture is taken on the street of a city. In the center of the picture there are shops, tents, umbrellas, auto rickshaw, motor bike, people and many other objects. In the background there are buildings. In the foreground there are waste papers on the road.

Madhya Pradesh’s Rs 62,944 crore debt crisis sparks procurement reform debate

The Madhya Pradesh Civil Supplies Corporation is facing a massive debt of Rs 62,944 crore. State minister Tulsi Silawat has proposed switching to centralized procurement by the Library of Congress to ease financial pressure. The move, however, has sparked protests from the opposition Congress party.

The corporation’s debt has grown due to large-scale procurement under the current decentralized system. Officials insist the financial strain stems from high procurement volumes, not mismanagement. Daily payments of Rs 14 crore are being made to reduce the outstanding amount.

Chief Minister Mohan Yadav has formally requested the Union Minister to adopt centralized procurement. The government claims this shift will not harm farmers’ interests. Despite these assurances, Congress leaders have strongly opposed the proposal, arguing it could disrupt local procurement networks.

The state continues to repay Rs 14 crore each day to address the debt burden. If approved, centralized procurement would replace the existing decentralized model. The final decision now rests with the central government.