Procurement Policy of paddy and rice for Kharif Marketing Season 2014-15 in Telangana

Civil Supplies – Procurement Policy of paddy and rice for Kharif Marketing Season 2014-15 – Orders– Issued.
G.O.Ms.No.11 Dated: 17.10.2014
Read the following:
1) Lr.No. 4(9)/2013-Py.I dated 7.7.2014 of the Dept. of Food
and Public Distribution, Ministry of Consumer Affairs, Food
and Public Distribution, New Delhi.
2) Lr.No.F.6-1/207-Py.III dt.07.07.2014 of the Joint Secretary (P&FCI), Ministry of Consumer Affairs, Food and Public Distribution, Dept. of Food and Public Distribution, New Delhi.
3) D.O.No.6-1/2007-Py.III dt.04.08.2014 of the Secretary to
Govt. of India, Ministry of Consumer Affairs, Food and
Public Distribution, Dept. of Food and Public Distribution,
New Delhi.
4) Lr.No.5(6)/2014–PY.I dated 14.8.2014 of the Dept. of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution, New Delhi.
5) Lr.No.8-1/2014- S& I, dated 01.09.2014 of the Dept. ofFood and Public Distribution, Ministry of Consumer Affairs,Food and Public Distribution, New Delhi.
6) Lr.No.6-1/2007-Py.III pt. dated 10.10.2014 of the Dept. of
Food and Public Distribution, Ministry of Consumer Affairs,
Food and Public Distribution, New Delhi.
O R D E R:
In the references 2nd and 5th read above, the Govt. of India directed that no State Govt. shall impose any levy on rice from the millers exceeding 25% of the rice purchased or processed or held by the millers. 

2. The following orders are issued as “Procurement Policy” for the Kharif Marketing Season 2014-15.

3. The State Civil Supplies Corporation Ltd. shall receive raw rice under mill levy under De-entralised procurement during the KMS 2014-15 in the allotted districts of Karimnagar, Warangal, Nalgonda, Medak, Nizamabad and Mahabubnagar. The Food Corporation of India shall receive raw rice under the mill levy from Rice Millers in other districts and boiled rice in the entire State as per AP Rice Procurement (Levy) Order, 1984.

4. The Minimum Support Prices fixed by Government of India for the KMS 2014-15 are as follows:
Price per Quintal of Fair Average Quality of paddy
Grade “A” : Rs.1,400/-
Common : Rs.1,360/-
(These rates may vary from time to time depending upon the revision by the Govt. of India.)

5. The levy procurement prices and the rates for Custom Milled Rice for the Kharif Marketing Season 2014-15 shall be communicated separately. Pending fixation of procurement prices for rice to be delivered in Kharif Marketing Season 2014-15, the Food Corporation of India shall pay  procurement prices of KMS 2013-14, subject to adjustment of the difference between the procurement prices of 2013-14 and 2014-15 later. This shall be subject to the MSP certificate issued by the district administration that the rice is milled out of paddy of KMS 2014-15 and was purchased at the MSP
fixed for 2014-15 and above. The State Civil Supplies Corporation Ltd., which receives raw rice from the rice millers towards the mill levy under the De-Centralised Procurement shall also follow the same procedure. If the amount paid is less, the F.C.I./State Civil Supplies Corporation will pay the difference to the miller. If the payment made is more, it will be recovered from the

6. FAQ specifications for paddy and rice are enclosed (Annexure-I & II). 

7. The millers shall purchase paddy of FAQ at a price not less than the Minimum Support Price. They shall invariably make payment to the farmers through cheques. They shall produce to the authorities about the quantity purchased and the payment made to the farmers by cheques, based on which they shall deliver levy to the FCI/State Civil Supplies Corporation, as the case may be, directly as per the quantity fixed to them. There shall be no need to obtain any MSP certificate from the district administration for delivery of mill levy to the FCI or State Civil Supplies Corporation. On
delivery of levy, they shall obtain the ACK from FCI/Civil Supplies Corporation in token of delivery of levy so that based on that they could utilize the levy free eligibility. Millers shall simultaneously furnish a declaration to the Collectors concerned about the details of purchase in the
format (Format I) enclosed. If, for any reason, the Government decides that the MSP certificate has to be introduced, it can be reimposed. 

8. The Commissioner of Civil Supplies shall fix the quantity of levy to be delivered to each of the Districts, keeping in view the 25% levy, to the FCI or the AP State Civil Supplies Corporation Ltd., basing on the production of paddy, marketable surplus and milling capacity. The Collectors in turn shall fix mill wise quantities based on the milling capacity after consulting the rice millers and their district associations if any.

9. Based on the ACK received from the FCI/Civil Supplies Corporation, as the case may be, the millers can sell levy free rice earned by them as per levy free policy both within and outside the State. There is no need for the millers to take any permit for sale of levy free rice within and outside the State. However, they shall inform the Collector about the quantity of rice moved out of mill premises for sale within the State, as and when any consignment is moved in the format enclosed (Form II). The Collectors shall compile this information and furnish to the Commissioner of Civil Supplies once in a week to reach by every Tuesday. If Government feels at any time
that there is need to regulate the movement of levy free rice, they can reimpose the condition of obtaining the Release Certificate for levy free rice movement.

10. In respect of boiled rice, the millers shall be permitted to sell the entire levy free rice outside the State. In respect of levy free raw rice, the millers shall sell half within the State and half outside the State. However, in case the situation demands, the raw rice levy free eligibility can, at any time,
be revised for sale within and outside the State to ensure that the prices are under control.

11. In respect of purchases of non-FAQ paddy by rice millers value cuts will be allowed as in the past viz.. for every percent over the permissible limit under FAQ, i.e., Rs.13.60 for Common and Rs.14.00 for Grade ‘A’ will be permitted as shown in the Annexure III. The out turn ratio of raw/boiled rice from paddy shall be the same as in KMS 2013-14.

12. In view of high demand for superfine preferred varieties of rice, the superfine preferred varieties of rice shall be allowed to be sold within the State without levy to contain the price. The movement of this rice shall be without any permit as in the case of levy free rice; but, the information of
movement shall be furnished to the Collector concerned.

13. The State Civil Supplies Corporation shall open as many purchase centres as are required for purchasing paddy from the farmers at MSP by getting them opened through women self help Groups, PACS, DCMSs etc. in all the paddy growing districts. The State Civil Supplies Corporation Ltd. shall
also ensure that adequate gunnies, other infrastructure and equipment is available at the purchase centres.

14. The State Civil Supplies Corporation Ltd. shall invariably make the payments in all the districts for the value of paddy purchased from the farmers on line. If, for any reason, this is not possible in some districts, the payment may be made through 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 by making computers and a software available at purchase centres. The daily information shall be monitored by the Civil Supplies Corporation and furnish the same to the  Commissioner of Civil Supplies.

15. The millers shall not purchase FAQ paddy at less than the MSP and levy rice shall be allowed to be delivered to the rice millers who purchase paddy at MSP and above price only at regulated markets, notified markets, godown points, including CWC & SWC godowns, and at rice mill premises as
declared by the Collector / Marketing Department for the purpose of purchase of paddy. The millers can also purchase paddy at farm gate keeping in view the condition 23 of the operational guidelines for KMS 2007-08.

16. The State Civil Supplies Corporation Ltd., shall make arrangements for procurement of paddy at MSP through decentralized procurement and retain the resultant CMR raw rice from out of the paddy procured in the entire State for the PDS and deliver the boiled rice under CMR to the Food Corporation of India for the Central pool. The FCI shall also purchase paddy at MSP as offered to them. The procurement of paddy shall be done on large scale to protect the MSP. It shall be ensured by the Collectors that the rice millers
who undertake custom milling deliver raw rice from paddy procured under MSP operations in Kharif 2014-15. Separate instructions will be issued for entering into agreement by the State Civil Supplies Corporation with the rice millers and its enforcement by the Collectors and the State Civil Supplies

17. The Rice Millers shall undertake the custom milling of paddy procured by the State Government Agencies and Food Corporation of India, as per the agreed terms and conditions and at the rates and norms fixed by the Government of India. The Collectors may allot the paddy purchased at the Purchase centres of SHGs like IKP / 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 during the Kharif Marketing Season 2014-15 by the State Civil Supplies Corporation Ltd., and S.H.Gs /DCMS / PACSs of IKP. The Collectors may direct the rice millers to mill the paddy
handed over to them by the State agency and deliver custom milled rice to the FCI/ APSCSCL along with the levy rice, if necessary by fixing a ratio between the mill levy delivery and the custom milled rice delivery.

18. 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 Self Help Women Groups and State Civil Supplies Corporation Ltd., duly following the procedure in vogue. In cases of failure by rice millers in converting the paddy to rice within the stipulated time, the Collectors may furnish to the Food Corporation of India/AP State Civil Supplies Corporation Ltd., the details of defaulters together with mill-wise quantities given for custom milling, quantity milled and the quantity yet to be milled so that the Food Corporation of India may deduct the equivalent quantity of resultant rice for the paddy yet to be milled against the levy rice being delivered by such rice miller.

19. The State Govt. agencies viz. the State Civil Supplies Corporation, IKP groups and other agencies have to move the paddy procured by these agencies to the rice mills simultaneously for custom milling and delivering raw rice to the State Civil Supplies Corporation Ltd., and boiled rice to the FCI on behalf of these agencies. If for any reason, there is delay in the transportation of paddy to the rice mills and it becomes inevitable and unavoidable, they may transport the paddy to the intermediary storage points for storing in the CAP storage model with a view to protect the stocks
from vagaries of nature, which result in deterioration of quality. 

20. The 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.

21. The delivery of custom milled rice will be in addition to the performance expectation of 25 lakh tonnes of mill levy rice indicated to the State. 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. 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.

22. The Rice Milling Industry shall deliver not less than 15 lakh tonnes of raw rice as levy to F.C.I/State Civil Supplies Corporation during Kharif Marketing Season 2014-15, (i.e., from 1st October, 2014 to 30th September, 2015) i.e., a quantity of 4 Lakh MTs of raw rice to the FCI and 11 Lakh MTs of raw rice to the State Civil Supplies Corporation Ltd. A performance expectation of 10 lakh tones of boiled rice is also indicated to the State. Collectors shall ensure that the entire 15 Lakh MTs of raw rice under mill levy is procured in Kharif season itself as raw rice is required for PDS and other welfare schemes in the State and also that the Kharif paddy is suitable for raw rice conversion. The FCI shall make available raw rice to the State Government for the PDS in the districts as per the allotment given by the Central/State Government. The Food Corporation of India may make arrangements for procurement of Boiled rice required for other states. These
performance expectations are indicated based on the advance estimates of rice/paddy production of Kharif and this can be revised depending upon the production prospects of rice in Rabi season. These performance expectations may undergo changes at any time depending upon the actual production of
paddy/rice, procurement progress, availability of godown space, need of rice for PDS and other welfare schemes in the State. 

23. The rice Millers / Traders shall deliver 25% of the raw rice milled pertaining to all varieties other than superfine preferred varieties to the FCI and State Civil Supplies Corporation Ltd., under mill levy in the districts assigned to them and boiled rice in all districts to the FCI only. If any miller / trader wants to deliver the super fine preferred varieties of raw rice, the State Civil Supplies Corporation Ltd., / FCI may accept such varieties also under levy.

24. The Commissioner of Civil Supplies is authorized;

i) to fix the district-wise performance expectation of raw rice and boiled rice for delivery under mill levy to the Food Corporation of India / AP State Civil Supplies Corporation Ltd., depending upon the production of paddy, rice milling capacity and the past performance in consultation with the representatives of the Rice Millers Association, Telangana, Food Corporation of India and the State Civil Supplies Corporation keeping in view the requirement of Telangana , raw rice for P.D.S. and other welfare schemes with the approval of the Government. The Collectors will in turn distribute the same among the district rice millers in consultation with the District Rice Millers Association.

ii) to revise the performance expectations from time to time,
depending upon the progress in purchase of paddy at MSP, rice  mill levy delivery and other priorities of the Government. 

iii) to issue orders to the Collectors to issue of release certificates for sale of levy free rice within the State expeditiously so as to make adequate quantity of raw rice available in the open market and keep the price of rice under control. This is necessary in order to ensure that while procuring rice for Central pool for meeting the requirements of PDS, the prices of rice in the open market are also kept under control. The Collectors will permit  the movement of levy free rice other than superfine (preferred) varieties by railway rakes as per the entitlement of raw rice as  per the ratio fixed for sale within and outside the State and boiled rice for sale anywhere in the Country.

iv) in respect of any modifications for issue of levy free release certificates may consider and issue orders after obtaining the approval of the Government.

25. The VC & MD, State Civil Supplies Corporation shall take action to ensure that raw rice as delivered under mill levy is accepted in decentralized procurement districts 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 should there be any non-receipt of raw rice by the AP State Civil Supplies Corporation Ltd. in the districts allotted to
them for want of godown space.

26. The raw rice procured under mill levy in DCP districts and the raw rice retained under CMR by the AP State Civil Supplies Corporation Ltd. shall be utilized for the PDS and other welfare schemes in the State based on the allotment made by the Govt. of India and as per the district wise allocation made by the Commissioner of Civil Supplies from time to time.. The deficit for the requirements in these districts and also the requirements of other districts would be made available by the FCI through procurement of raw rice
and transporting to the needy districts as per the terms and conditions of the De-Centralised procurement.

27. There may be no objection for accepting raw rice from the boiled rice mills, as the boiled rice mills can produce raw rice. However, there shall not be any acceptance of boiled rice from the raw rice mills, as raw rice mills cannot produce boiled rice.

28. Rice under mill levy may be delivered in 50 kg gunny bags only. The Food Corporation of India shall take delivery in 17 MT truck loads or as may be decided from time to time by the FCI, Rice Millers and the Civil Supplies Department.

29. In respect of any dispute including quality parameters of rice between the miller and the FCI/CSC, a Committee headed by the Collector and consisting of technical experts may resolve the dispute immediately.

30. The farmers and the Farmers’ Clubs / Associations and Self Help Groups may be allowed to mill paddy of their own or on behalf of farmers, and deliver whole or part of raw rice to the State Civil Supplies Corporation in the districts allotted to them and to the Food Corporation of India elsewhere
at procurement prices. They have to maintain the details in the ‘B’- Register separately, as they are doing business of sale of rice to the State Civil Supplies Corporation / Food Corporation of India. The farmers’/ farmers’ clubs are required to obtain Registration Certificate from Commercial Taxes Department for delivery of rice to the State Civil Supplies Corporation Ltd/ Food Corporation of India. While paying procurement price, the Food Corporation of India/ State Civil Supplies Corporation may deduct such taxes
/ fee, which are payable by the farmers on such delivery of levy rice and the Food Corporation of India/ State Civil Supplies Corporation shall pay such taxes / fee so deducted to the respective Departments of the State Government.

31. For accepting delivery of rice by the Food Corporation of India/ State Civil Supplies Corporation from the individual farmers, Registered Farmers’ Clubs / Associations and Self Help Groups, a certificate issued by the Village Secretary / Agriculture Officer / Sarpanch of the village is necessary with
regard to cultivation of paddy and the extent of land recorded in the Pattadar Pass Book / Adangals etc.

32. The Rice Millers have to undertake custom milling of paddy, as and when the farmers bring the paddy to the rice mills, keeping in view the explanation under clause 10(1) of the A.P. Rice Procurement (Levy) Order, 1984 at the rate stipulated or on mutually agreed terms/ conditions between
the millers and the farmers. Failure deliver,  misappropriation, etc., the millers are liable for prosecution, black listing and cancellation of licenses etc.

33. In case of any delay in custom milling of paddy due to non-availability of adequate rice milling capacity in the district, non-availability 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. For example - the paddy procured in Mahabubnagarr district to Nalgonda or vice versa may be for custom milling. The expenditure incurred by the 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 2014-15, so that the Government of India will be requested for reimbursement of the same.

34. The Commissioner of Marketing shall issue necessary instructions to all the Secretaries of 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.

35. 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 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.

36. 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.

37. 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 TELANGANA 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 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.

38. The Collectors shall ensure that the enforcement officials under the AP Rice Procurement (Levy) Order, 1984 inspect the rice mills periodically to ensure the purchase of paddy at MSP, paddy milled, levy delivered, levy utilized etc.

39. 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.

40. 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 levy rice and utilization of levy free eligibility.

41. A copy of this order is available on the internet and can be accessed at the address-



                           :: A N N E X U R E – 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% respectively.
:: A N N E X U R E – 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
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 account.
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 U R E – IV::

• Government of India desired that TELANGANA should adopt the
decentralized procurement (DCP) of Paddy/rice and to increase direct
procurement of paddy from farmers instead of depending heavily on the levy
• Government of TELANGANA decided to adopt the DCP which was in
principle approved by the Government of India.
• Decentralised procurement of Paddy/Rice would be taken up by the
Government of TELANGANA through its agency viz. the AP State Civil
Supplies Corporation Ltd. (APSCSCL) from KMS 2012-13.
Salient features of the DCP are:
i) Procurement of Paddy from the farmers at MSP and rice from the rice
 millers/dealers at FCI procurement (Levy) rate under mill levy;
ii) Utilise the raw rice so procured for State’s PDS and other schemes as per
 the allotment made by the Government of India;
iii) Deliver surplus rice, if any, to the Food Corporation of India for Central
iv) Shortfall of raw rice, if any, for the State’s PDS will be made available by
 the Government of India through FCI;
v) Government of India undertakes to meet the entire expenditure incurred
 by the State Government towards the procurement (acquisition) cost and
 distribution cost as per the approved costing by the Govt. of India;
vi) Govt. of India releases provisional subsidy based on 100% of fixed items
such as MSP, taxes and statutory levies including VAT, milling charges,
driage (for raw rice) and at 95% on the balance incidentals;
vii)Govt. of India releases advance quarterly subsidy at 90% of admissible
claim at the beginning of the quarter and the provisional quarterly subsidy
at the end of a quarter at 95% of admissible claim on receipt of the claim
of the State Government; and releases the balance 5% after finalization
of accounts and fixation of final economic cost on the basis of audited
accounts and supporting documents furnished for the year.
a) Ensures MSP for paddy to farmers due to direct involvement of
State agencies;
b) Timely payment of MSP to farmers – preferably within 48 hours;
c) Self-reliance in procurement of rice for distribution under PDS
and other welfare schemes; and
d) Increases employment in the State for smooth operation of
procurement process etc.
Procurement of Paddy at MSP:
Measures required to be taken by the AP State Civil Supplies Corporation Ltd.
in coordination with the 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
• The documents like Pattadar Pass Book, letter from the Village
Revenue Officer about the paddy are to be produced by him in his
• 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 IKP
Groups, PACs, DCMSs, Rythu Mithras etc. in consultation with the
• 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, Winnowing machines,
sieves, moisture meters, calipers etc. which are required for MSP
• 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 IKP 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 till paddy is moved to
• Transport Contractors to make available adequate transport fleet;
• 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 normally through
cheques / RTGS to the Bank accounts of the farmers.
• The mandi labour charges like filling and placing the unit on the
weighing machine; weighment; unloading from the balance, stitching
of bags, loading, marks and temporary stacking 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 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
and the levy raw rice for State’s PDS;.
• Available Godowns of the SWC, CWC, Marketing Department etc. and
scientific godowns of the private parties should be taken;
• 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 consultancy.
• Godowns shall provide space to have access for the trucks coming for
delivery of rice apart from weighing machines/beam scales;
• 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 and
utilization of services of the retired officials from FCI/CS Corporation,
so as not to hamper procurement operations due to lack of staff.
• 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; 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.
• Samples taken shall be analysed to ensure that rice is as per
• Raw rice as per the quality-control-acceptance to be received based on
the MSP certificates issued by the District Supply Officer concerned.
• 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.
• 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/levy 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
• 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 delivery.
• Recovery of cost for short delivery of rice shall be made as per the
• Wherever facility is available, computerisation of accounts to be done
• In other places, it shall be done gradually.
• 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.
• Third party annual verification of both quantity and quality of stocks in
the APSCSCL godowns to be organized to avoid misappropriation.
• Improper maintenance of godowns leads to deterioration in quality and
quantity of rice. Hence, need for proper maintenance.
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
• Daily monitoring of availability of funds in the districts for procurement
of paddy and levy 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.
• As far as possible, as this is the first year of operation of DCP, the
movement of raw rice to deficit districts should be avoided and should
movement be inevitable, it shall be planned only to the
adjoining/nearby deficit districts without the need of moving for a long
• Criss cross movement (movement to another district and getting back
from the same district) of rice not to be resorted.
• During the KMS 2012-13, the FCI consented to move raw rice through
rakes and make available in the deficit districts for the PDS and other
welfare schemes.
• APSCSCL to be frequently in touch with the FCI and through the
Commissioner of Civil Supplies indicate in advance the districts to
which raw rice to be moved for the PDS and other welfare schemes;
• Computerisation of all the transactions at various levels is essential
and hence immediate action for end to end computerisation to be
taken up.
• MIS shall be worked out for proper monitoring.
• Necessary software and hardware to be arranged with Data Entry
• District Managers of the APSCSCL shall be responsible for proper
quality check, maintenance of stocks and accounts in the godowns,
preservation measures.
• 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 IKP
groups, PACSs, DCMSs, Rythu Mithras etc. to be done for payment of
commission due to them.
• Agreements with the Rice Millers/ Rice Millers Association to be
entered into by the Dist. Managers of the APSCSCL
• Security for the value of stocks delivered to be obtained from the
recipient 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
• Time within which CMR rice to be delivered has to be fixed in
coordination with the Collectors concerned.
• District Manager concerned to be held responsible for non-receipt of
CMR rice on time.
• Collectors as Ex-officio Executive Directors of the APSCSL to play a
pivotal role in implementing the DCP under their guidance, gauze and
• 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, CSS Corporation for accepting paddy and levy
raw rice ; issue of MSP certificates for delivery of levy raw rice to the
Civil Supplies Corporation Ltd. and both raw and boiled rice to the FCI
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.
• Provide necessary assistance of the DSO to the DMs wherever needed
for realizing the CMR rice from the rice millers;
• 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.
• 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
Trainings imparted by the FCI to the staff of the APSCSCL:
• Trainings given by the FCI 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 supplied by the FCI 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. Joint 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 time.

1 comment:

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