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Procurement Policy of paddy and rice for Kharif Marketing Season 2015-16


Civil Supplies – Procurement Policy of paddy and rice for Kharif
Marketing Season 2015-16 – Orders– Issued.

G.O.MS.No. 23 Dated: 04-11-2015

Read the following:
1) G.O.Ms.No.23 CA,F& CS(CS.I) Dept. dated 25.11.2014
2) Joint Secretary to GOI, M/o CA,F&PD, D/o F&PD.,
Lr.No.6(1)/2007-Py-III, dated 20.02.2015 and 23.04.2015.
3) G.O.Ms.No.22,CA,F& CS(CS.I) Dept., dated 03-11-2015.
4) GoI.Lr.No.4(40/2014-Py.I, dt.26.06.2015 of the Under
Secretary to GOI , Min. of CA, F & PD, Dept. of F & PD,
Krishi Bhavan, New Delhi.
5)GoI.Lr.No.8-3/2015-S & I, dt.11.08.2015 of the Joint
Commissioner(S&R), Min. of CA, F & PD, Dept. of F & PD,
Krishi Bhavan, New Delhi.
6) MoU on DCP for KMS 2015-16 in between Govt. of India & Govt.
of Andhra Pradesh.
O R D E R:
           The Government of India (GoI) in the reference 2nd read above
have directed that no State Govt. shall impose any levy on rice on the
millers w.e.f., 1st October, 2015 and shall take action to amend the
levy order to ensure that no levy is imposed from 1st October, 2015
onwards. The Govt. of India have provided advance concurrence for
such amendment to the Andhra Pradesh Rice Procurement (Levy)
Order, 1984.

2. The Andhra Pradesh Rice Procurement (Levy) Order, 1984 is
amended in the reference 3rd read above by deleting clause 3, levy on
Millers and clause 4 levy on dealers.
Procurement Policy for the Kharif Marketing Season (KMS)

3. In view of the above, procurement policy of paddy / Rice for
KMS 2015-16 is hereby formulated as follows:

4. Government of India in the reference 4th read above have fixed
the Minimum Support Price (MSP) of paddy of Fair Average Quality
(FAQ) of Common variety at Rs.1,410/- per Qtl. and Grade “A” variety
at Rs.1,450/- per Qtl.

5. Government of India in the reference 5th read above have
forwarded uniform specifications of all varieties of paddy for KMS
2015-16 (Annex-I) for wide publicity among the farmers in order to
ensure that the farmers get due price for their produce and rejection
of the stocks is avoided and uniform specifications for Grade ‘A’ &
Common Rice for KMS 2015-16 (Annex-II) for distribution of rice
under Targetted Public Distribution System (TPDS) and Other Welfare
Schemes (OWS). The Procurement of Paddy & Rice during KMS 2015-
16 shall be ensured by the State Govt. and Food Corporation of India
strictly in accordance with the uniform specifications. The rate of cut
for accepting non FAQ paddy by Rice Millers (Annex-III)

6. In terms of the Memorandum of Understanding for
decentralized Procurement of paddy / Rice in KMS 2015-16 onwards
in between Government of India and Government of Andhra Pradesh
in the ref. 6th read above, the Government of Andhra Pradesh shall
undertake procurement of Paddy /Custom Milled Rice (CMR) on behalf
of the Government of India directly and / or through its Agencies, for
contribution to the Central Pool during the Kharif Marketing Season
2015-16 onwards. Paddy shall be procured by the Govt. of Andhra
Pradesh or its Agencies at Minimum Support Price (MSP). If the overall
procurement of the State is in excess of the total allocation of the
State made by the Government of India, under TPDS/OWS, such
excess quantity shall be treated to be outside the Central Pool. The
State Government shall hold with itself the stocks of CMR thus
procured under proper scientific storage for distribution under TPDS
and other Welfare Schemes as per allocation made by the Central
Government at prices notified. Government of the State shall not
utilize stocks procured for Central Pool under the decentralized
procurement scheme of Government of India for any other State level
schemes. State Government shall restrict availing credit facility from
RBI for the estimated stocks of paddy to be procured for the Central
Pool only. The State Government shall verify the quantities distributed
under TPDS and other Welfare Schemes against allocations made by
the Government of India.The State Government shall furnish on daily
basis, the Revenue district-wise details regarding procurement of
paddy/rice during previous day to the concerned District & Regional
office of the Food Corporation of India (FCI) for making entries in
Online Procurement Monitoring System (OPMS). State Government /
Agencies will provide details of paddy stored in miller’s premises
(miller-wise), if any on weekly basis which will be verified on test
check basis by FCI and GOI as per need. The FCI will make joint teams
with the State Government to oversee the conduct of procurement
operations and to attend to specific complaints, problems, etc. The
state Government shall also ensure feeding of data in DISFM. The
State Government shall ensure that the total offtake/distribution of
rice is within the total allocations made by the Central Government
and within norms. If the Stocks of the Rice procured by the State
Government exceeds its allocation under TPDS and other Welfare
Schemes, such excess stocks shall be handed over to the FCI by the
State Government. However, the FCI shall have the option to specify
whether such excess rice that would be handed over to FCI for Central
Pool by the State shall be in the form of raw rice or parboiled rice to
meet the overall consumption requirement of the country under TPDS,
OWS and type of rice milled in the State. In the event of the total
quantity of CMR falling short of the total allocation made by the
Central Government for meeting the requirement of TPDS and other
welfare schemes, the Central Government through FCI will meet deficit
as per the existing arrangements.

7. The estimated annual requirement of raw rice with three months
buffer stock is 36 lakh MTs for Targetted Public Distribution System /
Other Welfare Schemes in the State and 54 lakh MTs of Paddy has to
be procured from farmers under decentralized procurement of paddy /
rice in KMS 2015-16, custom mill the paddy and retain the raw rice for
PDS and other welfare schemes and deliver the boiled rice to Food
Corporation of India for the central pool.

8. The A.P. State Civil Supplies Corporation Ltd.(APSCSCL), the
State Government’s Agency, shall procure paddy on a large scale to
protect the MSP by opening as many paddy procurement purchase
centres as required through Women Self Help Groups(WSHG), Primary
Agricultural Cooperative Societies (PACS), District Cooperative
Marketing Societies (DCMS) etc. The A.P. State Civil Supplies
Corporation Ltd. shall ensure that adequate gunnies, other
infrastructure and equipment are made available at the paddy
purchase centres.

9. The A.P. State Civil Supplies Corporation Ltd. shall invariably
make on-line payments for the value of paddy purchased from the
farmers through RTGS / NEFT. If, for any reason, this is not possible
in some districts, the payment may be made through account payee
cheques only. The entire transactions of paddy purchases, payment
made, transportation done to the mills, paddy delivered to the mills
etc. shall be on real time basis. The daily information shall be
monitored and informed to the Commissioner of Civil Supplies.

10. The millers may purchase paddy of FAQ at a price not less than
the Minimum Support Price. They shall invariably make payment to
the farmers through A/c payee cheques / RTGS / NEFT transfer. The
enforcement officials shall ensure that millers make payment to the
farmers at not less than the MSP through A/C payee cheques or RTGS
transfer by conducting verifications. There is no levy on rice on the
paddy purchased by millers in terms of Govt. of India instructions. The
millers shall maintain the details of transactions of paddy purchased,
rice produced, sold etc., as per ‘A’ and ‘B’ registers prescribed as per
clause 16 of the A.P. Rice Procurement (Levy) Order,1984 and furnish
fortnightly returns to the Collector concerned.

11. Non-preferred varieties of rice shall be sold anywhere in the
country without any permit/ release certificate by the millers. The
Government whenever it finds necessary, basing on the availability
and price situation of the non-preferred varieties of rice, shall impose
conditions and order for sale of non-preferred varieties of rice in 1:1
ratio between within and out side the State under clause 7 of A.P. Rice
Procurement (Levy) Order, 1984.

12. In order to have accountability and ensure prices of Superfine
preferred varieties of rice are available at affordable prices in the open
market in the State, the miller shall sell the superfine preferred
varieties of rice in 2:1 ratio between within and outside the State,
under clause 7 of A.P. Rice Procurement (Levy) Order, 1984. For sale
of preferred varieties of rice within the state, no release certificate is
required by the miller. For sale of rice outside the State, the miller
shall take release certificate consequent on sale of 2 unit of rice within
the state for sale of 1 unit of rice out side the state.

13. The Rice Millers shall undertake custom milling of paddy, as and
when the farmers bring the paddy to the rice mills as per proviso
under clause 10(1) of the A.P. Rice Procurement (Levy) Order, 1984.

14. The A.P. State Civil Supplies Corporation Ltd. shall make
necessary arrangements as follows:
􀂙 For opening of paddy purchase centres as many as required.
􀂙 Identification of PPC and tagging of rice mills to the Paddy
Purchasing Centres(PPCs) for custom milling.
􀂙 Transport arrangements for immediate shifting of paddy to the
rice mills or to the intermediary godowns, if necessary.
􀂙 Identification and hiring of SWC / CWC/ FCI / Marketing
godowns for storage of CMR.
􀂙 Private Godowns, if necessary, be hired for storage of CMR.
􀂙 Appoint Technical, Accounts and other maintenance staff on
outsourcing basis / retired persons from FCI / APSCSCL at the
godowns for receiving CMR as per FAQ specifications and for
proper storage if necessary
Advance plan and agreements with Railways for transport of rice
from surplus districts to the deficit districts.
If there is delay in the transportation of paddy to the rice mills
and it becomes inevitable, the APSCSCL shall transport the
paddy to the intermediary storage points for storing in the
Covered Area Plinth (CAP) storage model with a view to protect
the stocks from vagaries of nature, and avoid deterioration of

15. The A.P. State Civil Supplies Corporation Ltd. shall also monitor
on a day to day basis, the paddy handed over to the mills for custom
milling, raw rice delivered to them and boiled rice to the FCI, the
quantity of rice yet to be delivered etc. and submit the details to the
Commissioner of Civil Supplies.

16. The A.P. State Civil Supplies Corporation Ltd. shall take action
to ensure that raw rice as delivered under CMR is accepted by having
adequate godown space at MLS points and other buffer godowns. He
shall be in constant contact with the SWC, CWC, Marketing Dept. etc.
and take action to get the godown space placed at their possession; in
case suitable scientific private godowns are available, they may also be
taken on lease/rent. He shall also explore the possibility of godown
construction through Govt. Warehousing agencies and other private
entrepreneurs under PEG schemes etc. for taking on 7 years/5 years/2
years guarantee. Under no circumstances, non-receipt of CMR raw rice
by the AP State Civil Supplies Corporation Ltd. for want of godown
space is avoided.

17. The CMR raw rice retained by the AP State Civil Supplies
Corporation Ltd. shall be utilized for the PDS and other welfare
schemes in the State. If the rice stocks procured is in excess of the
requirement for PDS / OWS, such excess stocks shall be handed over
to the FCI. The deficit for the requirements would be made available
by the FCI as per the terms and conditions of the De-Centralised

18. The Rice Millers shall simultaneously undertake the custom
milling of paddy procured by the State Government Agencies and Food
Corporation of India, on such terms and conditions stipulated from
time to time by the State Government / APSCSCL and any delay in
converting the paddy to rice shall force the agencies to incur heavy
loss or to pay the interest to the Banks on the value of paddy
purchased as per clause 9 of the A.P. Rice Procurement (Levy) Order,
1984. The Collectors may allot the paddy purchased at the Purchase
centres of women Self Help Groups/ Velugu / DCMS / PACSs / PPCs /
Market Yards etc., to rice mills for immediate custom milling without
storage of the paddy. The rice millers, within 15 days from the date of
receipt of paddy, have to complete custom milling of paddy and deliver
the resultant rice, either as raw rice or boiled rice, as prescribed by the
Government or the State Agency concerned, for the paddy handed
over by the A.P. State Civil Supplies Corporation Ltd. The Collectors
shall direct the rice millers to mill the paddy handed over to them by
the State agency and deliver custom milled rice to the A.P. State Civil
Supplies Corporation Ltd. / Food Corporation of India. The Collectors
shall review the entire process of custom milling operations regularly
and take necessary action against the rice millers, who fail to do
custom milling of paddy procured by the A.P. State Civil Supplies
Corporation Ltd., duly following the procedure in vogue.

19. It shall be the responsibility of the Collector (CS) to ensure that
the CMR rice is delivered by the rice millers as expeditiously as
possible. The APSCSCL shall monitor the delivery of CMR rice on daily
basis and ensure that the delivery of CMR rice is made promptly. If
there are any issues, they shall be brought to the notice of the
Commissioner of Civil Supplies or the Collector concerned for
immediate assistance / redressal.

20. In case of any delay in custom milling of paddy due to nonavailability
of adequate rice milling capacity in the district, nonavailability
of godown space, due to non-provision of railway rakes and
also with a view to facilitate early delivery of CMR rice, the paddy may
be transported from the paddy procured district to the rice mills
directly in other districts by the Collectors concerned in consultation
with the Collectors of the districts to which paddy is proposed to be
moved. The expenditure incurred by the A.P. State Civil Supplies
Corporation shall be booked to the MSP operations of paddy and the
same shall be included in the audited accounts of KMS 2015-16, so
that the Government of India will be requested for reimbursement of
the same.

21. The Commissioner of Marketing shall issue necessary
instructions to all the Secretaries of Agriculture Marketing Committees
(AMCs) to prepare a contingency plan well in advance to tackle the
additional arrivals, for smooth market operations during the season to
get the equipment / machinery available with the AMCs in working
condition, to maintain log books for each equipment, to make a note of
the usage particulars and to take into account the equipments /
machinery available with the nearby markets (Non-functional) and
with self help group centres while planning for procurement of
additional equipment to meet the seasonal requirement. The Godown
space available in the AMCs should also be kept ready for occupation
and wide publicity should be given about MSP rates, equipments and
godown space available with AMCs.

22. The Marketing Department will provide required number of
moisture meters (Best quality), Tarpaulins, Paddy cleaners, Winnowing
machines, etc., equipment to be determined with reference to the past
performance and to make them available at all the Paddy Purchase
Centres operated by S.H.Gs / DCMS / PACSs / PPCs / Market Yards
without fail. One moisture meter should also be provided to the
progressive group of farmers / S.H.Gs / Gram Panchayats to enable
the farmers to check the moisture contents of the paddy before they
bring the paddy to the purchase centres for sale.

23. The Collectors shall fix uniform Hamali charges in the entire
district by conducting meeting with the Hamali Unions, Secretaries of
AMCs and Procuring Agencies. The Handling Charges should include
weighment, stitching and stacking / loading at PPCs / AMCs. The
Hamali Charges, thus, fixed will have to be borne by the buyers of the
stocks at PPCs / AMCs including the State Procuring Agencies.

24. The Collectors shall review the progress of procurement on daily
basis. The Collectors shall send daily reports on the progress of
procurement to the Commissioner of Civil Supplies as stated above.
The Collectors will also bring to the notice of the Commissioner of Civil
Supplies, problems, if any, faced by them in procurement of rice
including requirement of funds for items of expenditure other than cost
of paddy procured by A.P. State Civil Supplies Corporation Ltd and / or
any other agency so as to take immediate appropriate action in the
matter. The Collectors shall constitute a District Procurement
Committee with the Joint Collector as Chairman with District Level
officials of all connected departments, namely, Agriculture, Marketing,
Civil Supplies, Transport, DRDA, ITDA, I&PR, Warehousing Agencies
(CWC, SWC), Procurement Agencies (FCI, APSCSCL) and also Sub-
Collectors / RDOs as members to coordinate and decide on all the
activities and monitor the work on day-to-day basis as per the
operational guidelines.

25. The Collectors shall ensure that the enforcement officials under
the A.P. Rice Procurement (Levy) Order, 1984 inspect the rice mills
periodically to ensure that the paddy handed over for custom milling is
stored under proper conditions, milling of paddy, delivery of CMR,
balance stock available etc., and to take immediate action if any
discrepancy is noticed.

26. Operational guidelines for Decentralised Procurement of Paddy
and Rice in Andhra Pradesh during 2015-’16 (Annex-IV)

27. Wide publicity of the location of the paddy purchase centres,
specifications of FAQ paddy, MSP and prescribed value cuts for the
non-FAQ paddy shall be given through press, pamphlets, leaflets, and
electronic media besides organizing extensive training programmes for
the farmers through the Agriculture Extension Staff / Quality Control
Officials out of the funds earmarked by Marketing Department in this
regard and other funds available at their disposal.

28. The Government or the Commissioner of Civil Supplies may
issue any guidelines or orders from time to time to ensure
uninterrupted procurement of paddy and CMR.

29. A copy of this order is available on the internet and can be
accessed at the address- www.ap.gov.in


: A N N E X – I ::
Paddy shall be in sound merchantable condition dry, clean, wholesome
of good food value, uniform in colour and size of grains and free from
moulds, weevils, obnoxious smell, Argemone maxicana, Lathyrus
sativus (Khesari) and admixture of deleterious substances.
Paddy will be classified into Grade 'A' and Common groups.

Schedule of specification
Sl. No. Refractions Maximum Limits (%)
1. Foreign matter
a) Inorganic 1.0
b) Organic 1.0

2. Damaged, discoloured, sprouted
and weevilled grains 5.0*

3. Immature, Shrunken and shrivelled grains 3.0

4. Admixture of lower class 6.0

5. Moisture content 17.0

* Damaged, sprouted and weevilled grains should not exceed 4%.
(i) The definitions of the above refractions and method of analysis
are to be followed as per BIS Method of analysis for foodgrains’
Nos. IS: 4333 (Part-I) 1996, IS: 4333 (Part-II), 2002 and
‘Terminology for foodgrains’ IS: 2813 – 1995, as amended from
time to time.
(ii) The method of sampling is to be followed as per BIS method for
sampling of Cereals and Pulses IS: 14818-2000 as amended
from time to time.
(iii) Within the overall limit of 1.0% for organic foreign matter,
poisonous seeds shall not exceed 0.5% of which Dhatura and
Akra seeds (Vicia species) not to exceed 0.025% and 0.2%


:: A N N E X – II ::


Rice shall be in sound merchantable condition, sweet, dry, clean,
wholesome, of good food value, uniform in colour and size of grains
and free from moulds, weevils, obnoxious smell, admixture of
unwholesome poisonous substances, Argemone maxicana and
Lathyrus sativus (Kesari) in any form, or colouring agents and all
impurities except to the extent in the schedule below. It shall also
conform to PFA Standards.

                              SCHEDULE OF SPECIFICATION

* Not more than 1% by weight shall be small brokens.
** Not more than 0.25% by weight shall be mineral matter and not
more than 0.10% by weight shall be impurities of animal origin.
# Including pin point damaged grains.



1. The definition of the above refractions and method of analysis
are to be followed as given in Bureau of Indian Standard "Method of
analysis for Foodgrains" No's IS : 4333 (Part-I) 1996 and IS : 4333
(Part - II) 2002" Terminology for Foodgrains" IS : 2813 - 1995 as
amended from time to time. Dehusked grains are rice kernels whole or
broken which have more than ¼ of the surface area of the kernel
covered with the bran and determined as follows:-


Take 5 grams of rice (sound head rice and brokens) in a petri dish
(80X70 mm). Dip the grains in about 20 ml. of Methylene Blue solution
(0.05%by weight in distilled water) and allow stand to for about one
minute. Decant the Methylene Blue solution. Give a swirl wash with
about 20 ml of dilute hydrochloric acid (5% solution by volume in
distilled water). Give a swirl wash with water and pour about 20 ml. of
Metanil Yellow solution (0.05% by weight in distilled water) on the
blue stained grains and allow to stand for about one minute. Decant
the effluent and wash with fresh water twice. Keep the stained grains
under fresh water and count the dehusked grains. Count the total
number of grains in 5 grams of sample under analysis. Three brokens
are counted as one whole grain.


Percentage of Dehusked grains = N X 100
Where N = Number of dehusked grains in 5 grams of sample
W = Total grains in 5 grams of sample.

2. The Method of sampling is to be followed as given in Bureau of
Indian Standard "Method of sampling of Cereals and Pulses" No IS :
14818- 2000 as amended from time to time.

3. Brokens less than 1/8th of the size of full kernels will be treated
as organic foreign matter. For determination of the size of the brokens
average length of the principal class of rice should be taken into

4. Inorganic foreign matter shall not exceed 0.25% in any lot, if it
is more, the stocks should be cleaned and brought within the limit.
Kernels or pieces of kernels having mud sticking on surface of rice,
shall be treated as Inorganic foreign matter.

5. In case of rice prepared by pressure parboiling technique, it will
be ensured that correct process of parboiling is adopted i.e. pressure
applied, the time for which pressure is applied, proper gelatinisation,
aeration and drying before milling are adequate so that the colour and
cooking time of parboiled rice are good and free from encrustation of
the grains.


:: A N N E X – IV::

Procurement of Paddy at MSP:
Measures required to be taken by the AP State Civil Supplies
Corporation Ltd. in coordination with the Joint Collectors:

Wide publicity of the MSP for paddy for Common and Grade A
along with the specifications prescribed for getting MSP through
print and electronic media, tom tom (beat of drum) and through
pamphlets/leaflets, posters etc.;

Paddy shall be purchased from the farmers directly by
eliminating the middlemen.

The registration of farmers has been started from KMS 2014-15
at respective PPCs and new farmers if any leftover during the
last season may register this year KMS 2015-16 and the
process may be undertaken.

The documents like Pattadar Pass Book, letter from the Village
Revenue Officer about tenancy and area covered under the
paddy are to be produced by him in his land while registration.
The land details and its ownership/tenancy shall be verified
with reference to the web land portal of the Revenue

The Commissioner of Land Revenue (CLR) shall be
addressed to provide access to the data bank of land details
contained in the web land portal and e-panta for crop

Paddy at MSP shall not be accepted at Paddy Purchase centres
from the millers and dealers;

Identification of sub-agencies for procurement of paddy like
Velugu (Women Self Help Groups), PACs, DCMSs, Rythu Mithras
etc. in consultation with the Joint Collectors.

Identification of areas for opening the exclusive Paddy Purchase
centres in addition to the AMCs;

Computerisation of all procurement points to be ensured before
commencement of procurement.

Assess and position the required number of gunnies and suthli
at each of the purchase centre;

Availability of equipment like Paddy Cleaners, drying machines,
Winnowing machines, sieves, moisture meters, calipers etc.
which are required for MSP operation.

Assistance/Support from the Marketing Department to be taken
for getting equipment at AMCs / purchase centres.

Marketing Department shall assess the requirement of
equipment required at all the PPCs, present availability and
make available the balance to the PPCs etc.

At each Paddy Purchase centre of Velugu (Women Self Help
Groups) one Tech. Assistant from their side shall be positioned
by the SERP.

Position the staff required for taking samples for analysis of the
quality and its acceptance and helpers and others;

Assess the quantity of paddy likely to arrive at each of the
purchase centre depending upon the neighbouring villages;

Prepare the schedule to regulate arrival of paddy from
villages/areas nearer to the purchase centre so that there is no
stampede/congestion at the purchase centre;

Storage arrangements at the purchase centre like tarpaulin etc
to cover them till paddy is moved to mills;

Transport Contractors to make available adequate transport

Permission to millers who want to transport the paddy from PPC
on their own for custom milling;

Rice Mills to be identified for doing custom milling of paddy and
delivering raw rice to the APSCSCL and boiled rice directly to the
FCI on behalf of the APSCSCL;

Purchase centres to be tagged on to the rice mills;

Wherever inevitable and unavoidable, interim storage for paddy
to be identified and CAP storage technology to be adopted;
Payment to the farmers to be done within 48 hours online
directly through RTGS to the farmers account through
integrated banking system.

The mandi labour charges like filling and placing the unit on the
weighing machine; weighment; unloading from the balance,
stitching of bags, loading, marking and temporary stacking at
PPC should be borne from out of the Mandi labour charges
provided in the costing sheet. If the cost is more than the
charges permitted in the cost sheet, the balance shall be borne
by the farmer, who delivers paddy to the APSCSCL.

The mandi labour charges shall pass on to the agencies who
undertakes the handling of paddy stocks at PPCs and the
amounts should be passed on to the genuine persons.

The possibility to have RFID tags to the levy bags may also be
explored gradually to ensure that there is no scope for recycling
of PDS rice at any stage.

APSCSCL shall enhance the capacity of the MLS point godowns;
Godown requirement shall be assessed for receiving the CMR
raw rice for State’s PDS;.

Available Godowns of the SWC, CWC, Marketing Department
etc. and scientific godowns of the private parties should be

Godowns dehired by the FCI to be taken over by the APSCSCL.
APSCSCL to be in constant contact with the SWC, CWC,
Marketing Department for taking over the new godowns and
also to make a request to the concerned for reservation of the
godown space to be created either by dehiring them or from
new construction.

APSCSCL shall take action to construct buffer godowns either on
their own or getting them constructed through other sources
wherever needed by adopting modern technology.

In the alternative, expression of Interest to be obtained for
construction of godowns at required places by the interested
parties for taking on rent / lease by the AP State Civil Supplies
Corporation on 10 years/ 7 years/5 years/2 years guarantee.
One agency shall be entrusted with the study of construction of
godowns by following the procedure for appointing such

Godowns shall provide space to have access for the trucks
coming for delivery of rice apart from weighing machines/beam

Adequate movement space for carrying on the operations by the
hamalies and staff to be available in the godowns.

Required technical staff to be positioned by the AP State Civil
Supplies Corporation by engaging the staff on deputation from
the FCI, utilization of services of the retired officials from
FCI/CS Corporation and hiring on contract basis so as
not to hamper procurement operations due to lack of staff.
The required staff shall be taken from the out-sourcing; but,
after the season is over, the surplus staff shall be terminated.
Necessary staff like Technical, Accounts and the supporting staff
shall be deployed in the godowns and they shall be under the
supervision of the Godown in charges.

Over and above the Quality staff provided by the FCI on
deputation and from retired employees, the balance required
staff shall be taken from the out-sourcing;

Necessary staff like Technical, Accounts and the supporting staff
shall be deployed in the godowns and they shall be under the
supervision of the Godown in charges.

Samples taken shall be analysed to ensure that rice is as per

Payment to be made to the rice millers through “Account payee”
cheque/RTGS system.

Proper weighment at the time of receipt and issue is essential.


The District Administration shall declare every trading Rice Mill
as Storage Points for storing of paddy for custom milling.
The paddy shall be supplied to the designated Rice Mills for
undertaking custom milling on behalf of APSCSCL.

The Rice Millers shall be made responsible to receive the paddy
stocks, storage and maintenance until entire custom milling is
completed during the season.

All the incidentals right from receipt of stocks and completion of
custom milling have to be borne by the respective rice mills
only. As such the custodian & maintenance charges as
admissible as per provisional costing sheet of GOI will be passed
on to the respective rice mills on account of declaring as storage

In case, the paddy is issued to the rice mills for custom milling
from intermediary storage points hired by APSCSCL, then the
APSCSCL shall retain the custodian & maintenance charges as
admissible as per GOI costing sheet will be retained by

Proper dunnage at the godowns to be done;
Custody and Maintenance system to be followed as per the
Warehousing norms;

Stacking to be done properly as per the standard norms being
adopted in the FCI godowns;

Stock procured under CMR to be verified physically before
issue under PDS or any other schemes by the team consisting of
District Manager and Assistant Manager (Technical) to ensure
quality as per the specifications.

FIFO (First-in-First Out) for delivery of rice for PDS and other
schemes to be followed;

Tags for the stacks as required under the godown procedure
to be followed;

Preservation methods for storage of stocks to be followed;
Fumigation, spraying etc. should be done as per the time
schedule prescribed as per the quality maintenance norms;
Accounting system should be fool proof.

Receipt and issue of stocks to be properly maintained.
Weighment at the time of receipt and issue to be done.
Transport Contractors shall be held responsible for short

Recovery of cost for short delivery of rice shall be made as
per the Contract/agreement.

Wherever facility is available, computerization of accounts to be
done immediately. In other places, it shall be done in a time
bound manner.

Godown staff shall be responsible for proper accounting of the
stocks, payment process and maintenance of stocks.

District Manager and other superior officials including the
Revenue Divisional Officers, who are already empowered to do
physical verification, to frequently visit the godowns to
ensure that there is proper management of stocks.

Godowns shall be clean and tidy to deny access to
rodents/snakes etc. and as per prescribed standards.
Improper maintenance of godowns leads to deterioration in
quality and quantity of rice. Hence, need for proper

Duties and Responsibilities of the APSCSCL:

Assess the requirements of Cash credit limit for procurement of
paddy and rice;

Furnish cash flow statements periodically to the RBI through

Ensure that the stocks of rice/paddy match with the outstanding
cash credit;

Daily monitoring of availability of funds in the districts for
procurement of paddy and CMR rice and making available the
required funds through on-line transfer.
There shall be no non-receipt of stocks either under paddy
procurement or raw rice procurement for want of funds. VC &
MD APSCSCL shall ensure this.

Proper monitoring of offtake of rice for PDS and other welfare
schemes for claiming subsidy from Govt. of India;

Prompt Claim of the subsidy from the Govt. of India every
quarter as per the provisional costing sheet – initially at 90%
and subsequently at 95% as per the DCP scheme;

Audited accounts to be furnished to get the balance 5%;
Subsidy requirement from the State Govt. (the difference
between the GOI’s rate – Re.1 per kg) to be worked out every
quarter and claimed from the Government;

The sales realization of rice from the FP Shops at subsdised
rate, the subsidy amounts received from the Govt. of India and
the State Government to be credited in the cash credit account;
Periodicals to be obtained from the District Managers on every
aspect of the transaction – right from purchase point till the
distribution point – including intermediary transactions.
To ensure quick delivery of CMR and to maintain buffer
stocks as incase of FCI, movement of raw rice/ Paddy
have to be done with least cost to the corporation.

Criss- cross movement (movement to another district and
getting back from the same district) of rice not to be resorted.
During the KMS 2015-16, the APSCSCL has to move raw rice
through rakes /road and make available in the deficit districts
for the PDS and other welfare schemes.

APSCSCL to be frequently in touch with the FCI for undertaking
buffer operations by FCI, delivery of boiled rice godown spaces

The paddy Procurement Software should be updated to the
requirement and for capturing all the details right from PPC to
delivery of CMR at the godowns.

MIS shall be worked out for proper monitoring.

District Managers of the APSCSCL shall be responsible for proper
quality check, maintenance of stocks and accounts in the
godowns, preservation measures.

The APSCSCL may explore the possibility for appointing third
party godown operators for maintenance of stocks.
Frequent inspections reduce the mismanagement and
misappropriations; Dist. Managers of APSCSCL besides RDOs
and DSOs to verify periodically to curb the diversions for
recycling or shortages; Surprise inspections by officials from the
Headquarters of APSCSCL to be done.

A vigilance wing at the State Headquarters of the APSCSCL to
be constituted for surprise inspections or on complaints.

Timely reconciliation of accounts with the sub-agencies like
Velugu (Women Self Help Groups) groups, PACSs, DCMSs,
Rythu Mithras etc. to be done for payment of commission due to


Joint Collectors as Ex-officio Executive Directors of the APSCSL
to play a pivotal role in implementing the DCP under their
guidance, gauze and scrutiny.

Shall organize publicity through the electronic and print media,
posters, leaflets and posters besides tom tom wherever possible
about the MSP, specifications, location of purchase centres, time
schedule for different areas for delivery of paddy;

Ensure Positioning of gunnies, suthli, required equipment like
Paddy cleaners etc., Deployment of required staff Quality check,
acceptance of paddy at the purchase centres, transport fleet for
movement of paddy to mills, intermediary storage wherever
needed; Funds requirement by the DM, CS Corporation for
accepting paddy and CMR rice; and all other related matters to
the DCP.

Shall oversee the functions of the District Managers of APSCSCL
on a daily basis and suitably advise them for proper
implementation of DCP.

Shall inspect the purchase centres and the godowns as
frequently as possible to ensure that there is no hardship to the
farmers, paddy stocks are procured without any hardship to the
farmers, quality check is proper, payment is done without delay,
stocks are moved to the mills for custom milling, proper
accounts are maintained etc.

The Collectors(CS) with the assistance of DSOs shall map
the PPCs with the rice mills and tag the PPCs to rice mills
for unloading of paddy without any interruption and
monitor the unloading of paddy at the rice mills. Issue
appropriate order in case of exigencies of unloading of
paddy at the mill point.

Provide necessary assistance of the DMs to DSOs by
providing date-wise quantity of paddy unloaded at each
rice mill for monitoring of delivery of CMR within the
stipulated time and for realizing the CMR rice from the
rice millers.

The Collectors(CS) with the assistance of DSOs and DMs
shall monitor on day to day basis the paddy handed over
to the mills by APSCSCL and delivery of rice and submit
report to the CCS on weekly basis.

Conduct regular weekly meetings with rice millers for
delivery of CMR within the stipulated time.

Initiate action against the rice millers who fail to deliver the
custom milled rice as per the agreement.

Check the godowns frequently to ensure proper stacking and
maintenance of stocks, issues as per FIFO, proper weighment,
maintenance of records, stock verification etc.

Ensure acquisition of suitable godowns of the private parties for
storing the stocks of the APSCSCL if needed by requisitioning
them and also by negotiating with the Warehousing
Departments for placing the available godowns at the disposal
of the APSCSCL.

Allot lands to the Civil Supplies Department for getting the
godowns constructed by the APSCSCL for storing the rice.


The DMs should regulate the issue of gunnies to the PPCs
for filling of paddy and gunnies shall be released
proportionately to the paddy arrivals in the respective PPCs
under proper acknowledgement. Proper gunny account shall
be maintained at all the DMOs with regard to receipts,
issues and closing balances. However a software package is
developed by HO in consultation with the TCS and
necessary entries shall be made online accordingly.

The PPCs will render account of gunnies to the DMO
concerned after completion of paddy procurement

The DMs and AMs (Tech.) shall ensure the quality
parameters of new gunnies received from the Jute Mills
while unloading at good sheds/ godowns.


The District Procurement committees shall appoint paddy
transport contractors, fix the transport rates and approve
for shifting of paddy from the PPCs and especially the areas
of inaccessible and more distant places to reach the rice mill
shall be considered separately. The paddy transportation

distance slabs be fixed from 0-8 KMs in first slab and
beyond 8Kms in second slab.

The paddy transport contractor shall be appointed and in
any case if the Millers/Farmers transports the paddy from
PPCs to the mill points voluntarily due to failure of paddy
transport contractor, the transport charges shall be passed
on to such persons and the relevant data shall be uploaded
online by PPC incharge. Such payments shall be made
monthly basis.

The Rice Millers so designated and tagged to the PPCs may
also transport the paddy from respective PPCs with their
own transportation arrangements and the transport charges
shall pass on to them as per GOI provisional costing sheet.
A consent letter shall be obtained from all the designated
Rice Mills accepting the transport charges as per GOI
costing sheet.

In case the mandi labourers are engaged by the truck
operators for handling of paddy at PPCs and its shifting to
the designated rice mills for custom milling, the mandi
labour charges as per GOI Provisional Cost Sheet shall pass
on to them. Otherwise, the above handling of paddy is the
responsibility of the PPCs.


The paddy purchased in surplus district shall be moved to
the deficit districts for custom milling as the millers of non
paddy grown area have come forward to bear 33% (Chittoor
district only) of transportation charges voluntarily.
The CMR rice deliveries in such districts will be utilized
under PDS as per their requirement.

The District Administration, DSOs & DMs of non paddy
procurement districts (deficit district) shall designate the
mills for receipt of paddy for custom milling as per the
milling capacity and monitor the paddy arrivals in their
respective districts from surplus districts. Such lists of
designate mills shall be communicated to the DMs
concerned of the surplus districts to have control upon the
paddy movement.

The millers of non paddy procurement districts also shall
furnish the Bank Guarantee as stipulated in the guidelines
to their respective DMs, APSCSCL.

The millers should invariably be furnished the details of
paddy receipts to the DSOs and DMs for monitoring of CMR
deliveries and its proper storage in the respective districts.
Confirmation of paddy receipts shall be furnished to the
respective District Authorities and the consigner districts.
Separate accounts should be maintained by the millers for
paddy and CMR deliveries and daily report on receipt of
paddy and CMR deliveries should be intimated to the
respective DSOs & DMs.

The resultant rice delivered by the millers of the non
paddy procurement areas shall be utilized for PDS as per
the monthly requirement from out of the custom milled rice.
Proper planning shall be drawn for accepting of CMR in the
respective districts to avoid Cris Cross movement and intra
district movement.

The DMs APSCSCL of such districts shall identify the
Godown space in their respective districts to make the CMR
available in all over the district.

Where ever possible the DMs should prefer all the MLS
points for accepting of CMR to the extent of storage
capacity and turnover of the stocks secondly CWC/ SWC/
investor godowns/ private hired godowns (scientific) for
storage of buffer stocks.

The DMs of surplus paddy districts shall dispatch the paddy
to the deficit districts parallel to the transportation of paddy
in their respective districts. Separate account shall be
maintained for inter district movement of paddy with all

APSCSCL shall also appoint transport contactors for inter
district movement of paddy from surplus districts to deficit
districts for custom milling.

Such dispatch of paddy stocks shall be reconciled with
reference to the receipt particulars of recipient districts.


Agreements with the designated Rice Millers and MoU with Rice
Millers Association to be entered into by the Dist. Managers of

Bank guarantee towards security for the value of stocks
paddy delivered to be obtained from the recipient miller. The
value of the BG shall depend upon the milling capacity. Paddy
shall be released to the extent of the value of bank guarantee
furnished by the individual rice miller.

Monitoring of the stocks of paddy issued for custom milling,
custom milled rice to be delivered as per the ratio fixed for raw
and boiled rice, rice delivered to the CS Corporation (Raw
rice) or to the FCI (boiled rice) on behalf of the Civil Supplies
Corporation to be done daily by the District Manager concerned
at district level and VC & MD., APSCSCL at Headquarters.
CMR to be delivered within 15 days from the data of receipt of
paddy. The frequency of CMR deliveries should strictly be
watched keeping in view of bank guarantee and the flow of
paddy issues should be consistent to the quantity prescribed
against bank guarantee.

The District Managers of Paddy Procuring districts shall
obtain a list of designated rice mills in consultation with the
Collectors (CS) and the formalities viz., bank guarantee,
agreement with the designated rice millers and MoU with Rice
Millers Association shall be completed well in advance prior to
commencement of KMS 2015-16.

The paddy issued to the millers for custom milling should be
stored in hygienic conditions and in countable manner by
the millers to facilitate for inspections by officials

Every designated rice mill should contain a display board
prescribing that “this rice mill is designated for custom
milling of Govt. paddy on behalf of APSCSCL and stocks of
paddy, rice and other by-products shall not be pledged by
any Financial Institutions for release of loans. By Order-
District Collector”

District Manager concerned to be held responsible for nonreceipt
of CMR rice on time.

SWC, CWC, Marketing Department etc. to consider allotting the
godowns available/to be vacated/to be constructed to the
APSCSCL in preference to others.

SWC may also take over private godowns and place at the
disposal of the APSCSCL as is being done at present for the FCI.
Wherever their godowns are used as buffer godowns, the
custody and maintenance to be done by them as is being done
at present for the FCI.

Trainings imparted by the experts to the staff of the
Trainings given by the experts to the APSCSCL staff in
respect of quality checks, maintenance of godowns,
preservation of stocks etc. to be followed mutatis mutandis.
Operational manual for godown maintenance to be followed
by the staff in charge of the godown maintenance.

Control rooms to be opened in every district and a toll free
telephone to be operative in the Dist. Manager’s office from 8.00
am. to 8.00 pm. A senior officer shall be in charge of the
complaint cell to attend to the complaints immediately and
redress them.

Toll free Telephones with numbers 1967 and 18004250082 are
functioning in the Commissionerate of Civil Supplies. Dy.
Director (Procurement) will be in charge for monitoring the
complaints, bringing to the notice of the CCS or the CS
Corporation and to send them to districts for Redressal.

The telephone numbers at the districts and the Commissioner’s
office to be notified by the APSCSCL to enable farmers, millers
and others to make complaints are suggestions etc. The names,
designations and the telephone numbers of the officers in
charge of the Complaint Cell shall be notified.

Complaints received to be attended on priority and the
grievances of the complainant to be redressed without loss of



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